THE LABOUR MARKET IN ROMANIA UNDER THE PRESSURE OF DEMOGRAPHIC AGEING: ANALYSIS OF THE EMPLOYMENT RATE AND OLD-AGE DEPENDENCY

Anghel Madalina-Gabriela and Strijek Denis-Arthur
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Anghel Madalina-Gabriela: ARTIFEX UNIVERSITY OF BUCHAREST / ROMANIAN ACADEMY, INSTITUTE OF NATIONAL ECONOMY, ROMANIA
Strijek Denis-Arthur: BUCHAREST UNIVERSITY OF ECONOMIC STUDIES, ROMANIA

Annals - Economy Series, 2025, vol. 5, 35-45

Abstract: The accelerated demographic ageing process that Romania is facing is causing significant pressures on the labour market and on the sustainability of the public pension system. In this article, the authors conducted a study on the interdependence between the employment rate of the working-age population and the old-age dependency ratio, using statistical data published by Eurostat for the period 2011-2024. The results obtained highlighted a clear and growing imbalance between the active and elderly population, with negative implications on the state's ability to support social spending. Thus, throughout the period under analysis, Romania recorded an employment rate lower than the European Union average, compared to the growing dependency rate of the elderly, which accentuates financial and social risks. The methodology used involved descriptive statistical analysis, comparing European and national trends, as well as formulating projections regarding the evolution of the elderly dependency rate, highlighting an almost doubling of this indicator in the next 40 years. The conclusions emphasize the need for a multidimensional reform aimed at increasing labour market participation, adapting the pension system to new demographic realities, and creating sustainable mechanisms to balance the relationship between generations, since only through the coherent integration of such measures can the fiscal and social collapse of an already fragile public pension system be avoided.

Keywords: employment rates; demographic dependency; population ageing; pension system; forecasts. (search for similar items in EconPapers)
Date: 2025
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