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Consideration on the key indicators of the labour market for work analysis in Romania.


Part of the market economy, in close liaison with other markets, the labour market is probably now one of the most dynamic segments of the economic mechanism, suffering profound mutations in the world, particularly in the context of globalisation, Romanian market is recording a series of fluctuations due primarily to the massive migration of labour, but also other causes, the system occupational being a homogeneous one, with many changes from one period to another.

Analysis of relevant labour market and developments, in order to develop policies and / or strategies--at the national, regional or global--is, for the reasons listed above, one approach is extremely difficult, given that it is hard to provided a perfect comparability of data collected nationally, with the aim of integration / comparison to their regional or global level. From this point of view we can find high enough variability data at national / regional / global perspective of harmonizing standards, design studies, implementation, analysis and statistical data sets of results for comparative research.

Relative recently, in this context what have gained an extremely important role, are statistical information systems of the labour market--structured on different levels of integration (for example, at the national level--Romania / INS, at regional level / European--European Union / Eurostat, at global level International Labour Office / KILM) designed to ensure compatibility and comparability of data through a series of standardization indices / indicators of labour market.


Unfortunately, after studying an important volume of publications, (scientific papers, doctoral theses and books) related to the recent years labour market in Romania, we could find that there is a certain retention and / or lack of information about the use of complex statistical informational systems, such as the International Labour Office, for a comparative analysis of the labour market in Romania.

It is emblematic that from Review of Theoretical and Applied Economics available online, in the period 2000-2007 only a single article (Vasile, 2007) mentions data from the indicators proposed by the statistical information system of labour KILM (Key Indicators of the Labour Market) developed by the International Labour Office, the majority preferring the calculating of certain indicators based on primary data to be provided either by the National Institute of Statistics of Romania, or by Eurostat--the Statistical Office of the European Union.

Starting from a series of articles (Cazes & Nesporova, 2004/5) and rules of good practice recommended by ILO in connection with the use KILM (ILO, 2005, 2007) for labour market analysis in different countries or regions (Global Employment Trends, 2008), we considered it appropriate to take into consideration the following aspects on labour market: labour force and participation indicators in the field of labour, indicators of employment and unemployment. These issues may well be emphasized with the help of 14 of the 20 indicators propose of KILM. Of course, for a more detailed analysis we would need all those 20 indicators.

For a more accurate reflection of the participation in the labour market, we used alongside the indicator KILM 1--Labour force participation rate, a complementary indicator KILM 13--Inactivity rate, an indicator reflecting the number of people who, despite located at the legal age for employment (15 + years)--are not part of the labour force (in other words, are neither employees nor unemployed). The two indicators mentioned give a percentage of 100%. Also, to illustrate the level of education of the workforce, we used indicator KILM 14--Educational attainment and illiteracy, according to the rules contained in the standards of the International Classification of Education--1997 edition (International Standard Classification of Education / ISCED 1997).

For the period 2000-2006, Romania had a relatively constant evolution, even if slightly downward of the KILM 1--and a streak slight growth of inactivity rate, regardless of sex, with a good rate of participation in the case of the male population. Compared with Bulgaria the rate of participation in the labour market is significantly better (with more than 15% at the beginning of the period studied and more than 10% in the year 2006). At the beginning of the period studied (2000), Romania had a participation rate of workers above the average of the EU member countries, similar to the Nordic countries and Great Britain. At the end of the period (2006) due to the downturn of the indicator, we stand at the EU level (50-61%).

For KILM 14 we find out for period 2000-2005 a slight decrease in labour with the level of primary education for the benefit of employment with secondary education, the mainstream Romanian labour market. Unfortunately, the level of employment with high levels of education, although it suffered a series of mild fluctuations along the period studied, remained relatively constant. Comparative with Bulgaria, Romania has a much higher percentage of labour with primary education, over labour with tertiary education, where Bulgaria has a percentage almost double compared to Romania.

The next six indicators, KILM 2-7, relate to estimate the level of employment in the labour market. The importance accorded by BIM through KILM these indicators should not constitute a surprise for analysts of the labour market as employment growth in the labour market is, in itself, one of the main goals of all policies in the labour market.

KILM 2-7 offers a wide range of information, relating to employment-to-population ratio (KILM2), passing through a series of characteristics of taking up a job (KILM 3-6), to a special category of information, from a sector that is not always easy even to identify, engage in so-called informal sector of the economy (KILM 7). Altogether, these six indicators can provide a broad perspective on the degree of finding employment in a particular country. Unfortunately, for the period under study, the existing databases in KILM--the fifth edition, do not contain complete sets of data for Romania regarding the indicator KILM 5 (data only for the year 2000), or data is missing in the case of KILM 6, respectively KILM 7. For these reasons, the work we used to analyze the degree of find employment indicators KILM 2, KILM 3--Status in employment, respectively KILM 4--Employment by sector activity.

For KILM 2 (2000-2006) Romania had during studied period a relatively constant evolution, even if slightly downward the rate of employment-regardless of sex, with a better rate of employment for the male population. Compared with Bulgaria employment rate is more than 20 percent better at the beginning of the period studied, about 10 percent in the year 2006. It should be noted, however, that there was significant progress in Bulgaria in recent years, with a spectacular growth rate of employment for both sexes.

KILM 3 for the period 2000-2005 recorded a slight increase in the percentage of employed workers over the percentage of self-employment. Bulgaria has, compared with Romania, a much higher percentage of employed workers; the number of self-employed workers is approximately half of the level of Romania.

KILM 4 for the period 2000-2006 recorded a declining emphasis on the percentage of workers in agriculture (with over 10 percent), for the benefit of increasing the number of employees in industry, but especially in the services sector. Bulgaria has also a development similar to Romania, but the trends are more exacerbated in this case, the number of employees in agriculture has dropped to half, while the percentage has raised spectacularly employees in the sphere of services, the percentage found far beyond the level of Romania throughout this period.

The next indicators (KILM 8-13) trying to cover not only simplistic aspects of unemployment (lack of a job), but treats, for example, aspects of those groups of people who are engaged inappropriate--employment depending on time--but also those who, for one reason another strain, although at the age (15 + years)--is not registration in employment. We present here only KILM 8,9 and 11.

For KILM 8--Unemployment rate (period 2000-2006) Romania has made a series of minor fluctuations, the level of this indicator stay relatively constant, with a higher rate of unemployment among the male population. Compared with Bulgaria, the unemployment rate is lower by over 10 percent to beginning of the period studied, about 3 percent in the years 2005 and 2006).

KILM 9-Youth unemployment (15-24 years) (percentage of total unemployed youth labour young): Romania has registered in the period 2000-2005 growth of the indicator light along the period studied. Regarding the percentage of unemployed youth of all young people (15-24 years), it is low (7-10%), probably because of the involvement of a large number of young people in secondary/ tertiary education. But the ratio: Unemployment young (15-24 years) / unemployment rate in adults (> 25 years) are worrying levels (average 3.5), which proves that Romania has problems with hiring young labour force. In Bulgaria, the ratio is one level lower than in Romania, due primarily to the large number of unemployed adults. Also the percentage of unemployed youth (15-24 years) in the total unemployed is high (over 30%). Unemployment among young people (15-24 years) (%) is higher by over 20 percent in Bulgaria in the first part of the range, decreasing to less than 5 percent in the last part of the period studied. The percentage of unemployed youth of all young people (15-24 years) has in Bulgaria a spectacular downward trend (from almost 12 percent in 2000 around 7 percent in 2005, which should be put on the involvement of a large percentage of young people in Bulgaria in the tertiary education level). The percentage of unemployed youth (15-24 years) in the total unemployed are much higher levels higher in Romania than in Bulgaria, because on the one hand lower rate of unemployment in our country, and on the other hand a high level the percentage of unemployed youth of all young people.

KILM 11--Unemployment by educational attainment (period 2000-2006) is found a higher percentage of unemployed people with secondary level education, followed by those with primary level education. The percentage of unemployed is much lower among people with tertiary level education. Bulgaria has a much higher percentage of unemployed with basic education (approximately 1.5-2 times as high as in Romania), while Romania has a higher percentage (up to 20%) of the level of unemployed secondary education. As regards the number of unemployed with tertiary education, greater in Bulgaria, it must be in conjunction with the level much higher than in Romania labour with tertiary level education in existing neighbouring country.


The key indicators of labour market may serve as a tool for monitoring and evaluation of a whole series of issues related to the proper functioning of the labour market. Here is a few examples of the way in which they can be used for the analysis of the labour market, and for developing appropriate policies at national or regional level: promoting agenda BIM on "decent work"; monitoring developments on the labour market through the Millennium Development Goals proposed by United Nations; identify those policies that have led to positive developments of the labour market and promote these policies as possible "the rules of good practice" that can be implemented in other countries or economies.


Cazes, S. & Nesporova, A. (2004/5). Labour markets in transition: balancing flexibility and security in Central and Eastern Europe, in Revue de l'OFCE, (no 91 bis), pp. 23-54, Available from: Accessed: 2008-07-15

ILO. (2005, 2007). Guide to understanding KILM; Available from: Accessed: 2008-08-02

Global Employment Trends (2008); Available from: ad/get08.pdf Accessed: 2008-08-20

UNESCO (1997). International Standard Classification of Education, Available from: information/nfsunesco/doc/isced_1997.htm Accessed: 2008-03-12

Vasile, V. (2007). Efecte ale integrarii si globalizarii asupra pietei muncii (Effects of integration and globalization on the labor market), in Integrarea Romdniei in Uniunea Europeand. Provocdri si solufii, supliment al Revistei de Economie Teoretica si Aplicata (Romania's integration into the European Union. Challenges and solutions, supplement of the Review of Theoretical and Applied Economics), pp. 143-150.
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Author:Oroian, Maria; Forgaciu, Flavia Lelia; Tomuletiu, Elena-Adriana
Publication:Annals of DAAAM & Proceedings
Article Type:Report
Date:Jan 1, 2008
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