MIGRATION AND REGIONAL DEVELOPMENT IN ROMANIA

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1 MIGRATION AND REGIONAL DEVELOPMENT IN ROMANIA CAMELIA ANGHEL ECONOMIST, BLOCUL NAȚIONAL SINDICAL, Domenii de interes: managementul resurselor umane, demografie, migratie ADINA CLAUDIA NEAMTU FULL PROFESSOR, CONSTANTIN BRANCUSI UNIVERSITY, Domenii de interes: marketing, marketing strategic, management, comunicare LIVIU NEAMTU ASSOCIATE PROFESSOR, CONSTANTIN BRANCUSI UNIVERSITY, Domenii de interes: management, management strategic, marketing international Abstract Economic implications of demographic decline and the changing age structure will be more visible in Romania after 2020, when the working population will decrease gradually and "mature" groups will come in the elderly population. Diminishing populations will cause a change in the economic dependency ratio and total economic burden of the working population will increase. The changes known in activity rates in the future are hard to predict, especially in the current context of labor migration in Europe. In this context, a realistic vision of economic and social development in the coming decades is a necessity for Romania. Where the countries of origin of migrants fail to implement clear and efficient social and economic general reforms, migration and remittances get involved whose fundamental purpose is although they do not contribute to the sustainable development at the national level. Population migration has now become a global issue important to the development and welfare societies. Remittances are the main concern in studies of migration and development, migration transnational model several as part of concerns about the economic future of many countries. Focus as well can be seen throughout this paper falls on cash remittances and consumer goods, on issues related to sustainable development, social development, human development. Many experts consider impossible the debate on economic development without taking into account human and social development, even sustainable development. Keywords: satisfaction, profession, migration, job. Classification JEL: L20, M11, M29 1. INTRODUCTION Basically, until that time, the entire population of the country was ensured socialy, economically were not automatically recognized as social phenomena unemployment or poverty. The transition to a market economy required a restructuring of the communist economy which caused massive layoffs, followed by remedial social policies: early retirement, severance pay and services, occupational reorientation. Romania's EU integration required since the preadjustment policies and social policy at EU values. 134

2 In Romania, the transformations after 1990 led to major social changes related to the transition to a market economy. This transition resulted in both economic changes and the need to implement a system of social protection that can disable the economic effects on the population. In the postrevolutionary period due to restructurings caused by the economic transition, employment rate fell unexpectedly knowing a significant increase in the late 90s. Migration and remittances are sections of the distribution of risks and strategies to ensure the means of living a decent life, followed by families and migrant households. The steps taken in the field today are significant both theoretically and empirically especially fundamental outlines heterogeneous nature of migration and remittances interrelated with the idea of development (economic, social, human). Remittances and migration of the population is a direct solution for households and migrant families and indirectly to solve structural problems of development. 2. Migration and regional development disappearances Labor migration was regarded as an integral part of this modernization process. Ontology cumulative causation argues that capitalist development [8] is evidenced inevitably deepening personal income (in all geographic areas) and inequality. By transforming the context in which decisions are fulfilled subsequent migration, establishing migration flows are led developing mechanisms [5]. This theory maintains that migration sets in motion a vicious circle where vortex effects change the system so that productivity and wealth in their areas of origin remain low (Rassool, 1999). Moreover, it suggests that regional and local economies fall because of migration by depriving communities most valuable of their workforce through increased reliance on the outside world and stimulate further migration of populations. In conclusion, migration enhances regional development disappearances [9]. If most countries fail to implement political and economic reforms effectively, migration and remittances will not lead to sustainable development at the national level [3]. However, if the developing countries of origin acquire a positive spin, if the stabilization and growth of the country begins to take wings when migrants are prone to be among the first to join and recognize these opportunities [6]. In 2015, the population increased in 17 member states and fell in 11 Member States. The highest increases were registered in Luxembourg (23.3 per 1,000 residents), Austria (14.4), Germany (11.8), Malta (11.7), Sweden (10.6), Denmark (8 4) and Belgium (7.2 per 1,000 residents). Instead, the largest population decreases were recorded in Lithuania (minus 11.3 per 1,000 inhabitants), Latvia (minus 8.7), Croatia (minus 8.2), Bulgaria (minus 6.7), Greece (minus 6) and Romania (minus 5.6 per 1,000 residents). Romania's population was reduced, every day of 2016 with 247 persons, according to data published ( by the European Statistical Office (Eurostat). Unemployment rate in the first quarter of 2016 was 6.6%, which is equal to that of the previous quarter, conforme Figure no.3 (Unemployment by age and sex in the first quarter of 2016) and Figure no.4 (Unemployment by age and area, in the first quarter of 2016). Employment structure activity areas clearly show a high rate of employment in agriculture (31.6%), while the percentages for the other sectors are represented as: industry (26%), construction (5.2%) transport (5%), finance and real estate (3.5%), public services (14.2%). 135

3 European Union includes young and old among vulnerable groups in terms of employment. Youth employment rate in Romania (15-24) has a value of 29%, while the average of this indicator in the EU is 37%. Eastern European countries have also a low rate of employment of young people (21-26%). The proportion of employed seniors is 37%, hovering close to the EU average (40%). Other Eastern European countries have a more active involvement of the elderly on the labor market (Hungary, 57% and Estonia 52%). Migration optimists are largely inspired by neo-classical economic migration and modernization development theories which are linked to the functionalist social theory. For defining and structuring a national strategy population is the main element, and the developing of national strategy must include clear measures for improving the demographic situation. As for the male and female employment rate of the population, it can be seen that women have a lower level of employment (53%) than men (64.6%): Male Female Source National Institute of Statistics, Figure no.1 Unemployment by age and sex, in the first quarter of 2016 EU countries cooperate closely to meet the challenges, sharing objectives and policies which are mutually supportive, reads INS. 136

4 Romania will register a population decline of 22.1% in 2050, one of the highest rates of decline in the world, according to a study by the United Nations (UN). According to a report by the UN on world population prospects for 2015 in Romania, the total population will decrease by up to 22.1% over the next 35, being ranked second in the world's countries the highest rate of population decline in Share of employment in rural areas (60.6%) is higher by about five percent than that of people employed in urban areas (55.9%), due to the large proportion of the population employed in agriculture: Source National Institute of Statistics, Figure no.2 Unemployment by age and area, in the first quarter of 2016 From this perspective, the major component of the sustainable development strategy should represent strategic measures to stop the demographic crisis in Romania. Modern economies are based more on knowledge than raw materials or physical labor [1]. To face competition from new emerging economies, Europe must create the jobs it needs a dynamic, knowledge. It is necessary to invest in education and science, as well as employment policies, so as to keep pace with technological change [4]. The top position is Bulgaria, whose population will fall by 27.9%, from inhabitants. 137

5 Romania is on the list of the 48 countries, where the number of inhabitants will decrease in the period from 2015 to 2050, falling in the group of those countries where the population will decrease by over 15%, with Bulgaria, Moldovia, Hungary, Ukraine, Serbia, Bosnia and Herzegovina, Croatia, Lithuania, Latvia, Japan. After Bulgaria and Romania, following ten positions in the ranking are occupied by countries in Eastern Europe. The number of Romanians abroad grew annually by over 7% from 2000 to 2015, UN data show. The only country that had a higher increase in migration was Syria for an apparent reason, the civil war grinding that country. Romanians are economic migrants instead and ended up having the greatest diasporp European Union, ahead of countries with a larger population. UN data show that in 2015 there were 3.4 million Romanian citizens living abroad. It is a much more than the official estimates made by Romanian authorities. In terms of numbers, Romania came to have the largest diaspora in the EU after the UK, Poland and Germany. But all these countries that are ahead of Romania in this ranking have a population several times larger than that of Romania. If the data are relative to the number of inhabitants in Romanian diaspora it represents 17% of the total population remained in the country and in Poland 11%. Remittances are the main concern in studies of migration and development, migration transnational model several as part of concerns about the economic future of many countries [3]. Focus as well can be seen throughout this paper falls on cash remittances and consumer goods, on issues related to sustainable development, social development, human development. Many experts consider impossible the debate on economic development [6] without taking into account human and social development, even sustainable development. Specialized research distinguishes two main forms of discrimination of women in the workplace: discrimination in terms of salary level, when women receive a differentiated remuneration in order to perform a similar work in terms of quantity and quality, and professional segregation when Women have more limited access to certain professions (usually more prestigious and better paid). Women remain the main people with precarious professional status. For example, unpaid family workers account for 9.6% of the employed population, but women are predominant (67.4% of all unpaid family workers). The largest gender discrepancy is among employers, the number of women in this category being times lower than that of men: Occupancy rate of population aged 15-64, by sex % Male Female Source: NIS, Labor Force Survey (AMIGO) Figure no 3 138

6 Occupancy rate of population The main reasons for discrimination against women are: a) preconceived attitudes of the jobseeker to the employment of women, which he considers a lower workforce; b) the employer's preference, which is usually male, for male workers for reasons of socialization or male solidarity, wanting to work more with a group of men than with a group of women or believing that a male leader is more effective; c) employer's predictions about the likely productivity of a female candidate, as her performance may be interrupted by marriage, childbirth and child care. Therefore, the tenderer gives priority to a male solicitor or, if a woman is still employed, it is paid less. Simply paid and underestimated, women's work tends to create pitfalls, limit opportunities and lower their living standards. Female Traps: 1. lack of help in caring for children (for example, children are sent to grandparents or women give up careers to raise their children); 2. do not share homehold work with their partner and workload at home; 3. paid work must be adapted to family duties so that it is often in part-time, poorly paid or atypical (eg night shit based work); 4. isolation from other individuals, due to fatigue and lack of free time. Women in Romania are afraid to spend their entire period of postnatal leave taking care of their children. According to IMAS Marketing and Surveys, 13% of people surveyed about family life said they did not take parental leave and care. The study also shows that, of those returning to work, 70% chose this option because of money, while 20% feared the possibility of problems at work. The study shows that 90% of single-parent families are made up of mothers (predominantly women aged 25-45) and children. At the same time, the involvement of the state in family protection is a problem raised by the majority of respondents. Scandinavian countries are often given as an example in terms of equal opportunities, as they have established parental leave for both parents, and men are increasingly encouraged to benefit from it. Sweden has the 'father's month', a device that allows fathers to take up to 60-days parental leave with paid leave of 80% of their salary. Conclusions The departure disaster of Romanians working abroad continues, but the issue of migration acquires new dimensions, since most of those who leave school degree or higher and most likely give up work which they had in Romania. The first waves of migration population emigrate came, mostly unemployed or people remaining unemployed for a long time due to de-industrialization [6], which had high qualifications and who have lost their jobs after the closure of factories, especially in the region of Moldavia. The situation has changed and the impact on the Romanian economy is significant. If until now migrants with secondary education accounted for the largest share of Romanian migrants, which went mainly to Spain and Italy, recently noted a strong growth segment of migrant education and superior skills, opting to Nordic countries or to destinations such as Germany, the United Kingdom and even Switzerland. There has increased the migration of highly qualified people, highly educated, well-informed, highly likely to have a job in Romania before emigration. 139

7 Assuming that most Romanians who have emigrated in the last year had a job in Romania, a simple calculation shows that, at an average wage of 570 euros gross per month and a total number of of Romanian who emigrated in 2015 (they the most recent data published in December 2015), Romania lost in a certain year, revenues of over one billion euros in "losses" for the salaries of those who emigrated. The first waves of migration population emigrate came, mostly unemployed or people remaining unemployed for a long time due to de-industrialization, which had high qualifications and who have lost their jobs after the closure of factories, especially in the region of Moldavia. The situation has changed and the impact on the Romanian economy is significant [7]. Free movement of labor is one of the pillars of European construction, workers (and their families) of any Member State in the Community having equal rights with workers of the host Member State. Massive migration of labor abroad has and will have at least two drawbacks. Currently, there are economic sectors which feel an acute shortage of labor (eg construction, textiles or in the hotel), which, at least for now, is compensated (partially) firstly by increasing labor productivity and investing in technology. Bibliography [1] Bass, S., & Dalal-Clayton, B. Sustainable development strategies: a resource book. Routledge, 2012; [2] Carley, M., & Christie, I. Managing sustainable development. Earthscan, 2000; [3] Chirtoc IE., Labor Market Characteristics In The South-West Oltenia Region, Annals- Economy Series, 2017; [4] Enea C. Crisis management effects on tourism services firms and its impact on development sustainable cities, Annals-Economy Series, 2009; [5] Irwin, A. Citizen science: A study of people, expertise and sustainable development. Psychology Press, 1995 [6] Voss, J. P., Bauknecht, D., & Kemp, R. (Eds.). Reflexive governance for sustainable development. Edward Elgar Publishing, 2006 [7]*** National Strategy for Sustainable Development of Romania [8]*** [9]*** [10]*** Eurostat, Population and social conditions, available online at [11]*** no. 164/30 June 2016 the "Employment and Unemployment" 140