23
January

Click the image to see it full size. In Romania, employment structure by sectors still differs considerable from Western economies. Starting out in the nineties with a completely oversized, yet unproductive, agricultural sector and a likewise oversized and unproductive industrial sector the underdeveloped services sector could enlarge its share of total employment in recent years, while the size of the industrial sector was largely corrected. Still, the size of the services sector is to low, especially when compared to its much larger contribution to the GDP of Romania. The industrial sector is still somewhat oversized and indicates a large part of labor-intensive, rather than technology intensive industrial activities. The still completely oversized agricultural sector is by no means productive and rather a buffer for the massive lay-offs during the nineties, what explains also its growth until 2001. A large part of the agricultural’s sector contribution to employment in Romania has to be interpretated as a form of hidden unemployment. The construction sector follows the trend of the national economy with a growing share during periods of growth and a declining share during times of recession. After 2000 it experienced a real boom and after the arrival of the crisis in early 2009 a sharp and even merciless breakdown.

Back to Romania: Unemployment and Employment.

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