Psihoselect

Three measures that the Bolojan government can take for the labour market, with low costs but high impact

 

One of the three fundamental pillars of the government programme, alongside ordering public finances and good governance, is “respect for citizens expressed through fairness, scrapping excessive benefits, good public services and honest social policies that support work, not dependency”.

What can these honest social policies that support work rather than dependency mean? Here are a few suggestions:

1. Encouraging women to participate in the labour market

According to INSSE (National Institute of Statistics) data, as of January 1, 2024, there were 1,310,000 women with housewife status and 99,200 women with unpaid family worker status, with approximately 200,000 women with unemployed status in Romania. A total of 1.6 million women in Romania, in a situation of dependency, aged between 15 and 64, represent 16% of the 9.5 million people potentially active in the labour market. They require dedicated programmes in this new government’s action plan.

A woman who does not work is in a relationship of dependence on someone else, and relationships of dependence give rise to abuse. In Romania, according to data from the FILIA Center obtained from the Romanian Police, there were over 130,000 police interventions in cases of domestic violence in 2024. To these must be added the cases that were not reported for various reasons.

These are the abuses we can see, but there are many more emotional abuses that we cannot see, yet they have just as powerful an impact on women. And the image of domestic abuse witnessed by children does nothing but traumatise them every single day. We are building the Romania of tomorrow, so we must take action today! We are building the Romania of tomorrow, so we must act today!

There are also women who want to devote themselves to their families and raising their children, and we must respect this desire, being aware that, as their children grow up, their lives must be filled with other activities that give them meaning and confidence.

What is the significance of a working woman?

At the societal level, working women have the greatest impact on closing the gender inequality gap. A study by Harvard Business School – McGinn&Castro&Lingo (2018) highlights how they become role models in their families. Girls raised by working mothers, when they reach maturity, earn more money, take on managerial roles, or take concrete steps to develop their careers. Boys raised by working mothers, having such a role model in the family, are supporters of gender equality and naturally take on roles in the family’s household activities without affecting their career development.

Work done within the family, including caring for extended family members, benefits from two sources—women and men. Caring for parents/grandparents is much more naturally taken on also by men, as these seniors are much less likely to be lonely, and their integration into family activities is a great advantage for them, fulfilling their need to be useful to society.

One positive aspect is that the new government’s programme specifies this integration of grandparents with an active role by providing legal possibilities for employed grandparents to take leave in place of parents. The measure also aims to enhance the active role of grandparents in children’s lives and in family balance,

The Bolojan Government programme proposes incentives such as:

  • Employment of parents with ≥3 children – a subsidy of 2,250 lei/month/employer for 12 months.
  • Mothers who are active in the labour market – bonuses of 1,000 lei/month for women with ≥3 children who are employed or self-employed (12 months)
  • Parents returning to part-time work while retaining 50% of their allowance – contracts for a maximum of 4 hours/day with half the allowanc

These are excellent measures for reintegration into the labour market. Let us not forget that we also need mothers/fathers with one or two children to work, through part-time contracts – without the current surtax, which has led to the termination of 1 million part-time employment contracts. This type of contract can go hand in hand with early childhood education (0-6 years) – nursery/kindergarten, thus also covering the education of young children.

More flexible work arrangements, the availability of childcare options, such as nurseries and kindergartens, together with the active involvement of fathers in raising children and the existence of social norms favourable to working mothers, are elements identified by the 2022 study by German macroeconomist Matthias Doepke (&colab) as measures that contribute to increasing the birth rate.

A detailed analysis of the phenomena of birth rates and women’s choices can be found in the article Piața muncii fără femei, viața noastră fără copii?

2. The youth segment aged 15-30

Another segment that requires maximum attention is that of young people aged 15-24, where unemployment reached almost 25% in the first quarter of 2025. We need apprenticeship programmes, encouragement to take up first jobs (an aspect included in the government programme), mentoring programmes that accelerate professional development in the 25-30 age group, ensuring the transfer of knowledge between generations and the acquisition of skills relevant to the labour market.

Young people are the most vulnerable segment, especially in the context of the implementation of artificial intelligence in companies, where a number of junior-level processes are being taken over by AI agents. Skills are becoming increasingly important and are a differentiating factor, and trainers in the education system are becoming accelerators for the employability of these young people.

The traceability mentioned in the government programme, which links the educational institution attended and its specialisation with the integration into the labour market and the job obtained, is also an indicator of the educational value of the respective institution as an active trainer, but also of the optimal use of funding in the educational system. It is a criterion of quality that can be easily monitored by entering this information in the new REGES – the employee register – together with the employment contract.

We have had such attempts in recent years, but the first to oppose this move were those who run higher education institutions. Transparency is a mirror reflecting the results of education, and if the image does not match the objectives, clear decisions and actions are needed. Not everyone wants such a change. As Caragiale said, «let’s review, but don’t change anything». We still have institutions that exist to serve themselves, without considering that they should provide a service to citizens and society.

3. Skills development, qualification, and retraining

In such a dynamic labour market, where Generation Z will change careers five times in their lifetime, skills development must keep pace with this speed. Possible actions:

  1. The implementation of micro-certifications, shorter training courses that enable participants to acquire the necessary skills within 6-12 months, would be a useful tool. In this way, we train people ranging from CNC machine operators to marketing specialists, BIG Data or cyber security experts.
  2. Updating occupational standards – Reviewing and developing modern professional standards. A programme funded by European fund – specified in the government programme, is an important step. The next step is to democratise skills training programmes – qualification and retraining, allowing for faster active training and adaptation of the workforce to market requirements.
  3. Occupational standard: 1. defines what a person needs to know and be able to do in order to be competent in a particular occupation; 2. serves as a basis for the development of vocational training programmes, skills assessment, and accreditation of qualifications; 3. sets clear performance standards, contributing to the quality of work.
    Making the training process more democratic in line with these standards means getting vocational and dual schools, universities, and employers/companies involved as active trainers in the market, alongside existing trainers. By clearly defining standards and having skills assessment centres that certify the level of skills gained in the training programme, the government, through the designated institution, can control what is being trained, at what level it is being trained, and the quality of the training, giving potential trainers free rein to organise themselves and become active in this market according to established rules.
    This professional training should be aimed at all segments of the market: young people actively seeking employment, employees eager to retrain and change careers, the 1.6 million women who are housewives or unemployed, as well as retirees who want to remain active and supplement their income. In this way, we will “fuel” the labour market with people who are trained with the skills, speed, and direction that are in demand.
  4. Programs to keep seniors active The age group where we can see people as having potential for work, learning, training, and retraining should be 15 to 74. Even though the retirement age is 65 and over, Eurostat data shows that we have countries in Europe where over 55% of those eligible for retirement choose to continue working for various reasons: to supplement their income, for social integration, or out of a need for meaning.
    In Romania, only 4% of people eligible for retirement choose to continue working after reaching retirement age.
    Legislative obstacles are also a deterrent, but they can be resolved by the Bolojan government Integrating older people into the labour market and encouraging active longevity is a pressing legislative challenge in the context of an ambiguous and fragmented regulatory framework. While the Labour Code allows, under Article 56(4), the continuation of employment for a maximum period of three years beyond the standard retirement age, with the employer’s approval, Law No. 360/2023 establishes the possibility of choosing between retirement and continuing to work until the age of 70, with annual agreement. These divergent provisions generate legal confusion, create inequalities in treatment, and block effective access to the labour market for seniors. The aim is to transform seniors into a valuable resource that is actively involved in the economy, rather than a passive category neglected by the legislative framework (source: lawyer Laura Novac, member of TF Labour Market RBL)
    A clear definition of the legislative framework for seniors, including part-time contracts, is an important incentive. In the Nordic countries, 55% of pensioners are active in the labour market, working an average of 20 to 26 hours per week.

These are some suggestions that the Bolojan government can implement at low cost but with a big impact to boost Romania’s competitiveness. One factor in attracting investors is the level of skills and availability of the workforce.

For more information on changes in the labour market, see the report The Changing Labor Market: How Do We Address Global Challenges at the Local Level? Prepared by RBL’s Labor Market Task Force, summarized by Economedia, aici.

Ph.D Claudia Indreica is a psychologist and CEO of PSIHOSELECT, with over 25 years of experience in recruitment and headhunting services for top and middle management roles. She specialises in psychological profiling to assess candidates’ skills and organisational compatibility for client companies. Claudia builds customised programmes for organisations and conducts labour market studies for investors or development projects in various industries

As an active member of Romanian Business Leaders, Claudia leads the Labour Market Task Force, which aims to increase the competitiveness of the Romanian workforce through actions in the areas of legislative regulations and national programmes. She is also a member of the Board of DWNT, an organisation that represents German companies and affiliates in Romania at the regional leve

“Claudia believes in education provided by experts, which is why she writes articles about the labour market in the context of the European business environment and contributes to the organisation of major events that bring together the business community, NGOs, public institutions, politicians and civil society.”

The opinions expressed in this section do not necessarily reflect the views of the editorial team.

Article published in Economedia, you can find it here.