Manpower: Aging, shrinking population creates worrying perspective for Romania

Aging population and drops in the number of inhabitants lead to a worrying perspective for the Romanian labor market, according to a study by Manpower. Solutions for Romania should include flexible labor, policies to support creation of new jobs, making education a priority and enticing Romanians working abroad back home.

“We have fewer children here in Romania, who are headed for an under-financed education system, with teachers hoping to leave – it is not hard to anticipate what will follow in 2020 – 2030 if nothing changes in the next five to ten years,” said Valentin Petrof, Country Manager al ManpowerGroup Romania. “Given the demographic shifts worldwide, considerable decreases in the number of inhabitants represent an important phenomenon in Romania as well. […] Aging population is a confirmed trend in Romania and abroad. Connecting the dots between the drop in population and the aging process, the perspective becomes worrying,” according to ManpowerGroup Romania. Romania lacks motivation and retention strategies for valuable personnel, which triggers the decision to emigrate to more developed countries. The two directions on the labor market are a growth in the weight of the services segment and the shrinking layer of active population. Governments and organizations should find solutions to extend the workforce, according to ManpowerGroup. Romania is the second source country, after Poland, for personnel in Europe, which makes the labor force migration to external markets even more predictable. The ration of employees to pensioners is discouraging: 4.2 million employees finance 4.9 million pensioners, and the gap will increase over the coming years. The social insurance system is at risk, without a viable plan to reinvigorate the labor force, Manpower warns. Romania's population has shrunk by 2.6 million people over the last 10 years, to some 19 million, according to the 2011 census. editor@romania-insider.com