SIMILAR ARTICLES

Three problems in 2018 budget – perseverare diabolicum

The first time it happens, the second time it can be a coincidence but for the third time it is already confirmed the establishment of… Mai mult

Draft / Employers who do not pay employees’ contributions to state budget are at risk of up to 6 years of imprisonment

The intentional non-payment of taxes and contributions due to the budget, subject to the withholding regime, will be considered a tax evasion, according to a… Mai mult

Fiscal Council, on 2018 draft budget: Deficit target depends on exceptional revenues. Overvalued revenues, undervalued expenses

The Fiscal Council published a preliminary opinion on the 2018 draft state budget on Wednesday, stating that this draft remains within the already traditional pro-cyclical… Mai mult

Real convergence – Wage purchasing power: Some comparisons with former communist countries

BNR made a thorough analysis of Romania’s status in terms of real convergence with Western economies. A precondition for adopting the euro, in line with… Mai mult

Eurozone accession in mid-term – single objective that can limit slippages in economy

Keeping the national currency under a controlled float exchange is a way to optimize the sustainable economic growth towards getting closer to the West but… Mai mult

PIAROM study/ Workforce systemic and structural problems. Examples

de Razvan Diaconu 14.12.2016

forta-de-munca-300x226Although a good thing apparently, the economic growth, accompanied by an increased number of employed people hides a systemic failure: in Romania, tendency is for the economic sectors relying on unskilled work to strengthen.

A keen analysis of the workforce from Romania’s regions of development conducted by the Romanian Local Investors Employers (PIAROM) confirms the old issues of the Romanian economy (e.g. a major gap between regions in terms of development, the inefficiency of the technical and vocational education system) and reveals problems unreported so far.

A systemic problem: the number of unskilled employees grows

Perhaps the most significant surprise is that, overall, the unskilled workforce increased by 8% in a year.

The analysis coordinated by Mihai Cioc, PhD in Economics, lecturer at the Academy of Economic Studies, shows that there are counties in Romania close to, or exceeding 25% unskilled workers of the total number of employees in the county.

Specifically, nine such counties – Teleorman, Salaj, Satu Mare, Maramures, Buzau, Vrancea, Covasna, Bihor and Bistrita Nasaud – have serious problems with the structure of employment.

Summarized data:

1-3-768x401

*

  • Workforce structure – implications for public policies:
  • Level of skilled workforce
  • Unskilled workers as % of total workforce at county level

*

According to the data from the County Agencies for Workforce Occupancy, of the first five occupations in Bistrita Nasaud, for instance, the largest number of employment contracts (4,626) are for the position of unskilled assembling and fitting parts worker.

At national level, consolidated data indicates that there are 14 occupations with more than 10,000 unskilled employment contracts each. These 14 occupations correspond to a total of 569,598 employment contracts representing more than 10% of total number of employees.

2-3-768x342

*

  • Unskilled work in Romania – 14 occupations with more than 10,000 employment contracts
  • No.      Occupation     No. of employment contracts
  • Unskilled worker in clothing industry
  • Unskilled assembling and fitting parts worker
  • Merchandise handler
  • Unskilled worker in demolitions, masonry linings, etc.
  • Unskilled worker in packaging solid or semi-solid products
  • Cleaner
  • Manual packer
  • Guard
  • Unskilled worker in cutting and dismantling building materials
  • Unskilled worker in agriculture
  • Unskilled worker in maintenance of streets, roads, bridges, dams
  • Kitchen worker (dishwasher, large dishes)
  • Unskilled worker in forestry
  • Loader unloader

*

The most of them – 97,304 employment contracts – fall in the category of “unskilled worker in clothing industry”.

This situation makes Anca Vlad, the founding chairman of the organization, to wonder whether authorities should also revise the Classification of Occupations in Romania given that the clothing industry is based on skilled personnel.

A matter of orientation: industries with low productivity grow even in the EU

The overall picture of the employed workforce from the PIAROM study shows that top five occupations in the private sector at national level, representing 11.5% of employment contracts, are:

  • Heavy truck drivers – 128,000 employment contracts
  • Sellers – 125,000 employment contracts
  • Commercial workers – 120,000 employment contracts
  • Unskilled workers in the clothing industry – 97,000 employment contracts
  • Security agents – 93,000 employment contracts

A comparison in terms of competitiveness in the EU shows that currently growing areas in Romania are those that have a low level of competitiveness even in consolidated states from the European Union. Below, an analysis of top 5 employing industries from two regions of development:

3-2-768x380

  • North – East
  • West

Another issue that the authors raised is that, in terms of employment, growing sectors in Romania are those with high turnover, but with low contributions to GDP.

Conversely, says PIAROM’s Chairman Cristian Pirvan, the transportation sector, which employs the highest number of people, does not benefit from the Government’s support.

A matter of public policy: employed / unemployed ratio

Social and employment policies also have a problem. The PIAROM analysis also highlights a major gap between counties in terms of ration of employment contracts to the official number of unemployed.

4-1

  • Number of employment contracts/ Number of unemployed ratio

The two extremes are far from each other: in Teleorman, there are 2.27 employment contracts per unemployed, while in Ilfov there are 71.99 employment contracts per unemployed.

As an example, let us take a look at the “spoiled” industry of the moment, the IT industry, where the workforce – programmers and personnel treated as such – is unevenly distributed across Romania.

5Workforce in the IT sector (programmers and personnel treated as such)

An explanation that makes some corrections to the trend of sharp polarization of the distribution of this type of staff is that the IT industry relies heavily on self-employed people using PFA as form of organization, widely accepted in the private sector.

But: the 30 employment contracts from Ialomita county probably involve the state employees – very few compared to the high expectations regarding the computerization of institutions.

Mergeți în homepage ›

Publicat la data de 14.12.2016

Lăsați un comentariu


NEWS

Brussels offers Romania four months to take measures to correct significant deviation of structural deficit

The European Council issued on Tuesday a new recommendation, at the request of the European Commission, based on the significant deviation procedure, with Romania being… Mai mult

Eurostat: Romania had second lowest tax to GDP ratio within EU, in 2016

In Romania, the ratio between the revenues that must be collected from taxes (including social contributions - tax/GDP ratio) and GDP was 26% in 2016,… Mai mult

9 ambassadors repeat: Venice Commission's opinion is needed to amend laws on judiciary

The nine ambassadors who met on Wednesday with Minister Tudorel Toader shared their "concern over the draft laws on the reform of the judiciary discussed… Mai mult

British Vitruvian Partners bought 30% of Bitdefender

Vitruvian Partners investment fund acquired about 30% of Bitdefender from Axxess Capital and becomes the second largest shareholder in the company, valued at over USD… Mai mult

Split VAT at the Chamber of Deputies: Dilemmas of all kinds. Thresholds for outstanding payments have increased 10 times, Budget Committee to resume debates on Monday

The Budget Committee of the Chamber of Deputies has increased ten times the threshold of the outstanding VAT obligations from which companies will automatically be… Mai mult

Competition Council: Food price increase could be caused by demand excess from budget deficit

The Competition Council started an analysis, following the request of the Ministry of Agriculture, to establish the causes of the accelerated food price increase this… Mai mult

Seizure of all Liviu Dragnea's assets to recover EUR 28 million in Tel Drum case

Liviu Dragnea at the exit of the DNA headquarters where he was expected by a group of supporters and another of protesters. DNA prosecutors have… Mai mult

Rompetrol saga, chapter about money: Government asks KazMunaiGaz to pay the historical debt and demand settlement of case in court

The extension of the memorandum between the Romanian state and KazMunaiGaz, the owner of the Rompetrol Group, will be discussed only after the company's historical… Mai mult

"Not only we have not died, we rank third in the world" - Government approved second budget amendment, deficit of 2.96% of GDP

The second budget amendment this year has been adopted at the government meeting on Wednesday. As the Finance Minister assures, this amendment is "positive", the… Mai mult

Mayors: Government to offset by state budget money municipalities’ losses following tax measures

Mayors accepted on Tuesday in the negotiations with Prime Minister Mihai Tudose and several cabinet members, the promises made by the government officials to partially… Mai mult

Competition Council, "worried" that municipalities are establishing their own companies

The establishment of own companies by local administration to manage the services at the local level is worrying for the competition authority, Bogdan Chiritoiu, President… Mai mult

Draft legislation on judicial system in Parliament – to be debated as a matter of emergency

The ruling coalition registered with the Chamber of Deputies on Tuesday the draft amendments to the three important laws for the judicial system: Law 303/2004… Mai mult

Negative opinion and analysis of Fiscal Council on tax changes. "Tax package" costs 5.2 billion, not planned at all

The Fiscal Council issued a negative opinion on the proposal to amend the Fiscal Code, according to the opinion published Friday on the institution’s website.… Mai mult

Negative opinion from CES for Tax Code changes, Government meeting postponed

The Economic and Social Council, a consultative body of the Parliament and the Romanian Government, issued a negative opinion on Tudose cabinet's draft amendment to… Mai mult

Doing Business 2018: It is easier to do business in Republic of Moldova than in Romania

Romania ranks 45th in the Doing Business 2018 ranking by the World Bank (WB), with a total score of 72.87 points, right under the Republic… Mai mult