POPULATION DECLINE, LABOR FORCE CHANGES AND GDP GROWTH

Sala Adrian Lucian
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Sala Adrian Lucian: UNIVERSITY OF CRAIOVA

Annals - Economy Series, 2017, vol. 1Special, 200-205

Abstract: Romania’s population is undergoing a decline in demographic figures and a shift in the population structure, as older generations tend to retire moving to the top part of the age pyramid. This types of transitions are followed by a decrease in economic growth, as a result of a shrinking workforce, lower productivity levels, a more moderate savings rate, and smaller investments. Looking at the labor market in Romania, it is apparent that it is in decline, with a considerable portion of the population approaching retirement, and a lack of workers to take their place. But this reality has not caught up yet with the Romanian economy that is growing at a constant pace. To better understand this phenomenon, a closer look at the labor force is in order using the employment to population ratio, which helps in explaining how the labor force contributes to constant economic growth. The research method is statistical with the aim of determining the changes over time of the employment to population ratio, in relationship to the total population and GDP growth. The expected results аre thаt economic growth is mаintаined and encouraged by а steady working group of the populаtion thаt in time has become more proficient аnd productive thus leаding to a constаnt increase in GDP.

Keywords: Employment to Population Ratio; GDP; Total Population; Economic growth; Productivity (search for similar items in EconPapers)
Date: 2017
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