“The romanian labour market searching for solutions to skilLs mismatch” October 6, 2017 Silvia Vlăsceanu, Vice-president of Employers Confederation CONCORDIA

The Romanian Labour Market - Current situation General perspective Almost all Romanian economy’s sectors currently face with a serious lack of qualified staff The situation is not new and is based on the deep changes that our economy suffered following the ’90, as well as keeping a low standard of living compared to other European states, the migration of an important percentage of qualified workforce to the countries with a much higher standard of living, the serious decline of vocational education and the interruption of the connection between the economic operators and the educational sector, the lack of implementation of some public policies of correlation of the educational system with the needs of the economic operators and of the pupils and students More and more economic operators in Romania are forced to look for qualified technicians and workers outside the country In the absence of a developed professional educational system, the qualification at the working place is not enough any more to meet the needs of the labour market

Current situation – The Romanian Labour market in numbers almost 9 million active persons on the labour market, out of which around 8.5 million had a job, and 530.000 were unemployed 61.6% - occupation rate of the working population (15-64 years old) 22.3% - occupation rate of youth (15-24 years old) 42.8% - occupation rate of the elderly (55-64 years old) 5.9% - unemployment rate – has the highest level (20.6%) among the youth (15-24 years old). Source: INS (National Institute of Statistics) for the year 2016

Current situation – The Romanian Labour market in numbers 72% of the employers interviewed in Romania by Manpower state that they faced difficulties in 2016 in terms of the occupation of the vacant jobs. 11 percentage points is the increase of the employers’ share who face with this issue compared to the level of 2015. The main reasons why the employers face difficulties in the occupation of the vacant jobs are: The insufficient number of available candidates on the Romanian market, state 35% of the employers; The lack of skills specific to the job, state 21% of the interviewed employers. The lack of experience of the candidates, state 18% of the employers. Source: The yearly study of Manpower Group for Romania

Current situation – The Romanian Labour market in numbers 6% - the decreasing percentage of the active population starting from 2007, thus Romania being ranked third as spread in EU 4% - the estimated percentage of reduction till 2020 of the elderly population (20-64 years old) 13% - the estimated increase of the elderly till 2060 Source: The 2017 Romania Country report prepared by the European Commission

The Romanian Legislation Starting from 2011, the Romanian authorities adopted a new Education Law and a series of regulatory documents that encourage the development of education in tight connection with the employers’ needs, according to the European model, but the reform doesn’t move to the pace desired by the business sector The legislation in force allows granting scholarships and other financial incentives for pupils and students (traineeships, apprenticeship programmes, internship, dual education) The employers receive financial incentives for hiring unemployed, young graduates or NEET young (Not in Education, Employment or Training ),etc. More forms of partnership are regulated for the development of vocational education and the economic operators can involve in drawing up the curricula

The Romanian Education Law no 1/2011 - provisions State supports the vocational education and highschool education – the technical or vocational path, by: a) the recognition in the non-university tertiary education of the studies obtained within higher education – the technical or vocational path, based on a proper regulation; b) the partial financing at schooling within state post-secondary schools; c) special scholarships and other forms of material support. The vocational school, having a period between 6 months and 2 years, is reintroduced, being organized „in vocational schools that can be independent units or affiliated to technological, state or private high schools The training shall be done based on the professional training standards approved by the Ministry of Education, following the consultation of the social partners, and these standards shall be done based on the occupational standards validated by the sectoral committees

The Romanian Education Law no 1/2011 – provisions The educational establishments where the technical education is taught are settled by the School Inspectorates, with the consultation of the local public administration authorities, taking into account the social and economic development trends stipulated in the regional, county and local strategic documents, related to the technical and vocational education. The technical and vocational highschool education can be organized also based on the applications on the part of the private employers or of the National Employment Agency, based on some schooling contracts The share of practical preparation is much higher

The Romanian Education Law no 1/2011 – provisions The economic operators who provide, based on a contract with the educational establishments, scholarships, practical apprenticeships of the pupils, the equipment of the spaces of practical preparation or jobs for the graduates can benefit from tax facilities, according to legal provisions. Upon the request of the economic operators, the vocational education can be organized in dual system, as part of the national education system, after the mandatory education. The notions of lifelong learning and learning in non-formal environments are defined and regulated There are legal provisions related to the certification of knowledge and skills acquired in non-formal and informal contexts The organization and functioning of adults’ professional training are regulated by the legislation related to the adults’ lifelong professional training and to the apprenticeship within the job.

The Strategy of Education and Vocational Training in Romania for the period 2016-2020 General goal: the development of an educational and professional training system adapted to the requirements of the labour market and the needs of the direct beneficiaries. Targets: an increase by 10% of the pupils’ share included in the vocational and technical education; the increase of relevance and the assurance of quality of lifelong professional training programs and, consequently, of the participation rate of adults to lifelong learning, from 1.8 in 2013 to 10% in 2020; the development of the educational and professional training system around 4 key dimensions: Relevance, Access and Participation, Quality, Innovation and Cooperation.

The main issues the Romanian employers are facing The economic operators want to participate actively, by all the partnership forms, to the preparation of qualified labour force, but, although the legal framework has been modernized, the implementation of measures falls short The qualifications and the curricula in the vocational and technical education continue to be insufficiently aligned to the needs of the labour market The cooperation between the ministries and the institutions that carry out educational activities for adults is limited The implementation of the strategy in the sector is slow and yet actions have not been launched on the field financed through the FSE (European Social Fund- ESF), as the country report prepared by the European Commission shows

The main issues the Romanian employers are facing The participation to lifelong learning is, hereafter, one of the lowest in the EU The correlation between the Classification of Occupations in Romania with the new National framework of qualifications hasn’t been completed - the revision of 2000-3000 standards and the preparation and approval of standards for new occupations and jobs We have hereafter low results in terms of the basic skills, a high and increasing rate of early school-leaving and a low rate of graduating tertiary education The situation is aggravated by the persistent flow of emigration

The main issues the Romanian employers are facing The vocational and technical education is hereafter fed with the most non-performing of the 8th grade graduates, who find themselves at the end of the XIIth grade in the impossibility to promote the school leaving examination The material base of the educational establishments is seriously degraded, the teaching staff has a big inertia to change The technical jobs are not appreciated by parents and pupils

Solutions A bigger flexibility of the legal framework to ensure the implementation conditions of the vocational education models, that should be adapted to the regional and local context The flexibility of regulations for the dual education so that this partnership form to develop fast The flexibility of partnerships for the apprenticeships The real involvement of employers in the preparation and update of the curriculum The system should be more focused on the pupils’ and employers’ needs The implementation of sustainability programs in order to attract the young people from the rural area and underprivileged areas to the vocational and technical schools

Solutions The authorities should support the business sector through the implementation, in partnership, of some information campaigns of the pupils on the opportunities that are offered them once they graduate professional schools The pupils should benefit from guidance in choosing a career, and the teachers in the vocational education should follow specialization and lifelong training programs The implementation and adoption of success models from the EU member states, by means of partner organizations

Thank you!