Romania’s labour market faced major structural challenges from 2000 to 2024. Employment rates have risen, but the number of employed individuals has reduced mainly due to demographic decline and emigration. The workforce is aging and young people face difficulties in transitioning from education to employment. Persistent disparities by gender, region, area of residence, education, and age constrain labour supply and deepen inequalities. Limited public resources and institutional and legislative weaknesses limit the effectiveness of labour market integration policies for vulnerable groups and allow informal employment to persist.

Work on different days of the week is not equally desirable to workers. The same is true for work performed at different times of the day. Undesirable work times are more common among less educated workers, young and quite old workers, minorities, and immigrants. There are substantial cross-country differences in patterns of work timing, with work in lower-income countries distributed more evenly across the week. Policies to affect the timing of work are few, but they do alter outcomes.

Labour market discrimination is widespread and raises ethical, societal, and efficiency concerns. It not only results in the unfair treatment of individuals with comparable skills, but also imposes broader costs on society by eroding trust and weakening cohesion. Moreover, discrimination limits the full potential of the working-age population by excluding talent or trapping people in roles below their abilities. These effects are amplified by feedback loops: fewer opportunities lower labour market participation and productivity, while the harm discrimination inflicts on mental and physical health further reduces economic output.

In the past 25 years, the Chilean labour market has observed a modernisation in terms of its transition to a service economy, but also in terms of its institutional robustness. It has seen a consistent growth in the labour force, driven by women’s entrance in the labour market, and a sustained increase in earnings from salaried work. However, it faces obstacles to drive growth through labour productivity and to ensure that growth translates to better socioeconomic outcomes for workers as a large low-productivity segment persists, also driving informality. These obstacles include lengthy permits, human capital deficits, low R&D investment, as well as slow technological adoption. Solving these issues requires coherent policy making beyond employment and labour policy.