Employment and Unemployment at Regional Level

This paper analyzes the effect of the restructuring process on the employment dynamics of urban and rural residents in the Romanian labor market, a study that focuses on every region of development in Romania. We study the structure of the population, the effects of the economic restructuring, the demographic trends that can have long-term effects, analyzing at the same time the ability of individuals to adjust to labor market transformations. To be noticed would be that long-term unemployment in Romania has grown in both absolute and relative terms in the last few years, leading to increased expenditures, both absolutely and in relation to unemployment benefits, for the support allowance and social assistance programs and for pensions to labor force drop-outs. We also focus on the fact that Romania's integration into the European Union is the major global determinant that creates the new frameworks for evolution in our society; and at this stage, compliance with the European standards in various domains raises some difficulties regarding implementation. Several fields (among which agriculture) face major problems during the post-accession period, the shortage of manpower being severely felt. We also underline the fact that employment and human capital management policies go beyond the framework of the labor market itself, because any strategy of employment is practically a component of the overall strategy of growth and development. And here exactly does the regional development take up its role, aiming at stimulating and diversifying the economic activity, stimulating private sector investment, helping to reduce unemployment and ultimately leading to the improvement of the living standards. In our empirical analysis we use data on Romania covering the time period 2000-2007.