Romania

Abstract

This chapter discusses social, economic, and demographic realities in Romania and the public policy challenges they present. In common with many other European countries, Romania is experiencing socio-demographic changes including an increase in the number and proportion of older people in the population, increasing life expectancy, decreasing birth and fertility rates and increasing labour migration. All these phenomena have an impact on the labour market which is already under stress due to macroeconomic factors. Education, health and administration are the largest sectors of public employment. The transition to retirement in the public sector is not accompanied by support programmes such as training, shorter or more flexible working hours or intergenerational transfer of skills, all of which could stimulate older adults who wish to remain in paid work. An extension of working life after retirement is possible and salaries can be combined with pensions. Romania faces an increasing deficit in the pension system.