OECD recommending Romania to increase employment, reduce regional and social disparities, improve workforce quality

In its latest report on Romania's assessment within the OECD Employment Labor and Social Affairs Committee (ELSAC), the Organization for Economic Co-operation and Development (OECD) recommends the OECD hopeful to intensify its efforts to increase employment, reduce regional and social disparities and improve workforce quality.

According to a release from the Ministry of Labour, Family, Youth and Social Solidarity, the OECD document published on Thursday highlights the progress made by Romania in promoting employment and strengthening social inclusion, but also the aspects that need to be closely monitored in relation to the trends observed at the level of OECD member states.

The publication of the report follows Romania's formal ELSAC approval at the beginning of this year, which represents the confirmation of the country having successfully completed the phase of analysis of employment and social inclusion policies, an essential step in the process of accession to the OECD, as ELSAC is one of the 25 Committees to evaluate Romania in this process.

"The release of the ELSAC evaluation report confirms the substantial progress Romania has made in recent years. We are pleased that the reforms undertaken - from expanded support for vulnerable categories to investments in early education - enjoy international appreciation. Also, the report highlights the areas where we still have work to do - from increasing the employment rate and reducing emigration, to combating social inequalities and improving vocational training. We will continue to act with responsibility and perseverance, so that our policies best meet the needs of the citizens and OECD standards," declared the Minister of Labor, Family, Youth and Social Solidarity Petre-Florin Manole, as cited in the release.

Among the reforms and initiatives that have contributed to the modernisation of the labour market and the strengthening of social cohesion, the report mentions the 2023 pension reform that equalised the retirement age for women and men and linked it to life expectancy, as well as the increase, in 2024, of the minimum guaranteed benefits, the expansion of coverage and social support.

The report refers to national strategies aimed at improving access to services for people with disabilities, the elderly, homeless people and the Roma community, as well as investments in early childhood education and work-life balance, as the state has reduced the age of compulsory education, issued new standards for preschool education and doubled parental leave in 2023.

Also highlighted are the increase in incomes and the reduction of poverty. Thus, household incomes have gone up significantly in the last decade, and poverty has experienced a downward trend, even if it remains high compared to the European average.

Regarding the strengthening of social dialogue, the OECD shows that the recent reform of labor legislation has facilitated unionization and strengthened collective bargaining rights.

"The strategic directions recommended by the OECD for Romania aim to intensify efforts to increase employment, reduce regional and social disparities and improve the quality of workforce. Investments in education, training and social inclusion are essential and must remain a priority in the coming period," the release also states.