1. Public Employment Policy and Job Training Policy for Romania
Dr. Minsik Choi
(Professor, Ewha Womans University)

2. Issues To Be Discussed
Current LMPs in Romania
Evolution of the Korean public employment and job training programs
Korean ALMPs during the 1997 economic crisis
Public employment and job training policies
in advanced countries
Linking employment services and job training service to provide convenient services to targeted groups : One stop service
Providing services through private sectors: Enhancing effectiveness of the programs
Some policy implications

3. Active Labor Market Programs: OECD Categories
Active measures
Public employment services
and administration
Labor market training
Youth measures
Subsidized employment
Measures for the disabled
Passive measures
Unemployment pension
Early retirement
for labor market reasons

4. Participation in Education and Training
Participation in Education and Training in Romania (25-64 years), 2011
Working status
Romania
European Union
Employed
1.3
9.5
Unemployed
1.5
9.1
Inactive
2.3
6.9
Total
1.6
8.9

5. Employment and Unemployment Rates
Employment and Unemployment Rates, by highest level of education attained (%, ISCED levels)
Romania EU
Employment rate (20-64 years)
Pre-primary, primary and lower secondary education (levels 0-2)
50.7
53.0
Upper secondary and post-secondary non-tertiary education
(levels 3 and 4)
63.2
69.9
First and second stage of tertiary education (levels 5 and 6)
82.1
Unemployment rate (25-64 years)
6.9
14.8
6.4
7.6
3.8
5.0

6. Persons Registered with Public Employment Services in Romania
Persons Registered with Public Employment Services in Romania (PES)
Registered jobseekers (total)
Jobseekers aged less than 25 years
2003
702452
(18.52%)
2004
625128
(20%)
2005
534393
99282 (18.58%)
2006
502806
84310 (16.77%)
2007
390183
62175 (15.93%)
2008
363369
58198 (16.02%)
2009
587892
67189 (11.43%)
2010
711348
(14.25%)

7. Activation-Support in Romania
Activation-Support in Romania (LMP Participants Per 100 Persons Wanting to Work)
Total LMP measures (categories 2-7)
2006
2007
2008
2009
2010
European Union
(27 countries)
32,5
35,1
33,5
29,3 :
Romania
6,5
6,7
3,3
3,2
Netherlands
39,2
40,6
48,7
52,5
45,4
Austria
28,2
29,4
31,8
34,3
28,0
Poland
11,6
14,7
28,6
27,4
20,1
LMP supports (categories 8-9)
2006
2007
2008
2009
2010
European Union
(27 countries)
40,4
38,8
40,2
48,2
44,6
Romania
16,2
13,4
11,4
24,2
27,1

8. LMP Expenditure
LMP Expenditure - Percentage of GDP (Total LMP: Categories 1-9)
2006
2007
2008
2009
2010
European Union
(27 countries)
1.83
1.61
1.62
2.17 :
Netherlands
2.86
2.47
2.31
2.88
2.91
Austria
2.12
1.92
2.35
2.27
Poland
1.16
1.01
0.91
0.96
1.04
Romania
0.42
0.34
0.27
0.46
0.61

9. European Union (27 countries) 0.46 0.47 0.54 : Netherlands 0.72 0.80
LMP Expenditure
LMP Expenditure – Percentage of GDP (LMP: Categories 2-7)
2007
2008
2009
2010
European Union (27 countries)
0.46
0.47
0.54 :
Netherlands
0.72
0.80
0.78
Austria
0.51
0.67
0.66
Poland
0.40
0.53
0.60
Romania
0.08
0.06
0.04
0.03

10. Expenditure by LMP Interventions
Expenditure by LMP Interventions – Romania (mil. Euro)
2003
2004
2005
2006
2007
2008
2009
2010
Labour market services
20,66
23,66
30,66
40,82
46,22
47,79
37,04
34,77
Training
5,04
4,82
10,70
11,76
12,75
12,41
4,15
4,24
Employment incentives
29,10
36,34
44,08
52,10
52,29
49,93
35,69
23,11
Direct job creation
20,43
31,01
33,18
29,17
20,08
7,99
7,37
Start-up incentives
0,24
0,38
0,39
0,81
0,83
1,05
0,04
0,03
Out-of-work income maintenance and support
275,33
296,86
313,95
270,82
283,71
242,51
449,61
679,61
Total LMP (categories 1-9)
353,49
382,49
430,79
409,48
424,97
373,76
534,52
749,13
Total LMP measures (categories 2-7)
57,50
61,97
86,18
97,84
95,04
83,46
47,87
34,75
Total LMP supports (categories 8-9)

11. Active Labor Market Programs
Active Labor Market Programs: OECD Categories
Active measures
Public employment services
and administration
Labor market training
Youth measures
Subsidized employment
Measures for the disabled
Passive measures
Unemployment pension
Early retirement
for labor market reasons

12. Evolution of Korean Employment and Job Training Programs
Introduction of the employment insurance system in 1995
To prevent unemployment, to promote employment, to develop and improve the vocational ability of workers
Started as active measures
Setting up institutional frame for employment policy by utilizing unemployment insurance funds
Significant amendment in 1997 and 1998 (financial crisis period)
Generous eligibility requirements for unemployment benefits
Grants to promote employment of the long-term unemployed added
Establishment of Employment Stabilization Program expansion

13. Evolution of Korean Employment and Job Training Programs
Introduction of One-stop service centers in 2005
Unemployment benefit services
Employment information services
Job skill development services
Partnerships among employers’ organization, labor unions, job training institutions, NGOs to provide one stop services

14. Korean Unemployment Measures
Table 3-3. Budget for unemployment measures (Billion Won)
1998
1999
2000
Total budget for unemployment
measures
10071
15650
5922
Memorandum items
measures as a percentage of GDP
2.2
3.2
1.1
Total expenditure on labour market measures as a percentage of GDP
1.5
2.7
0.8
Share of expenditures on active
measures in total expenditure
on labor market programs (%) 70 45

15. Expenditures on Labor Market Programs
Table 3-4. International comparison of expenditures on labor market programs
in periods of rising unemployment
Unemployment
rate
Government expenditures on
labor market programs as a percentage of GDP a)
Trough
Peak
Change between
peak and trough
Australia(1989, 1993)
6.2
10.9
1.1
2.6
1.5
Belgium(1991, 1994)
6.6 10
3.9
4.2
0.4
Canada(1989, 1992)
7.5
11.3
2.1
2.9
0.8
Finland(1989, 1993)
3.1
16.4
2.2
6.7
4.6
France(1990, 1994) 9
12.3
2.7
3.2
0.6
Germany b)
(1991, 1994)
8.4
Korea(1997, 1999)
6.4
0.2
2.5
New Zealand
(1989, 1992)
7.1
10.3
Spain(1990, 1994)
16.2
24.1
3.4
3.8
0.3
Sweden(1989, 1994)
9.4
5.5
United Kingdom
(1990, 1993)
10.5
1.6

16. ALMPS: Training Programs
Table 3-5. Training programs for the employed: participation and expenditures,
January to June 1999
Total
In-plant vocational training
Number of firms providing training
23011
(100.0)
16338
(71.0)
Number of trained workers (A)
266478
257069
(96.5)
Program expenditures
(000's of Won) (B)
(61.9)
Average expenditure per participant(B/A)
168.3
108.1
Paid training leave
Subsidies for
Course attendance
Loans for
school fees
148
(0.6) ..
6525
(28.4)
1425
(0.5) 15
(0.0)
7963
(3.0)
(5.8)
13525
(32.2)
1827.9
901.7
1812.9

17. ALMPs: Vocational Training Programs
Table 3-6. Benefits of the in-plant vocational training program, by firm size, 1999
Firm size (number of workers)
Total
Less than 150
More than 1000
Construction a)
Subsidized firms (A)
43511
(100.0)
30478
(70.0)
9946
(22.9)
3087
(7.1) ..
Firms paying
Contributions (B)
601394
569417
(94.7)
4679
(0.8)
531
(0.1)
26767
(4.5)
Firms' participation
rate (%) (A/B)
7.2
5.4
212.6
581.4
Subsidized workers ( C )
781408
98479
232062
450867
(12.6)
(29.7)
(57.7)
Insured workers (D)
93925
(59.0)
(20.8)
(18.7)
(1.6)
Workers' participation
rate (%) (C/D)
12.9
2.8
18.4
39.8
Amount of subsidies
(000s of Won)
(14.0)
(32.1)
(53.8)

18. ALMPs: Outcomes of Training Programs
Table 3-7. Outcomes of training programs for the unemployed
Total
Reemployment
training a) of
the unemployed
under the EIS
Training programmes not financed by the EIS
Employment
promotion
Crafts
-men
3-D
jobs
Business
start ups
New labor
market
entrants
Other
programs
1998
Total number
of trainees
362941
(100.0)
170096
(46.9)
101709
(28.0)
14515
(4.0)
11000
(3.0)
13598
(3.7)
43012
(11.9)
9011
(2.5)
Number of
trainees who
Completed
the course
193837
116429
37465
12942
8724
12515
5762 ..
Completion
rate b)
53.4
68.4
36.8
89.2
79.3 92
13.4
Found
employment c)
43470
(22.4)
26193
(22.5)
7218
(19.3)
6326
(48.9)
2610
(29.9)
561
(4.5)
562
(9.8)

19. ALMPs: Outcomes of Training Programs
Table 3-7. Outcomes of training programs for the unemployed
Total
Reemployment
training a) of
the unemployed
under the EIS
Training programmes not financed by the EIS
Employment
promotion
Crafts
-men
3-D
jobs
Business
start ups
New labor
market
entrants
Other
programs
1999
Total number
of trainees
358351
(100.0)
226356
(63.2)
69466
(19.4)
16817
(4.7)
9122
(2.5)
7725
(2.2)
10022
(2.8)
18843
(5.3)
Number of
Trainees who
Completed
the course
131638
93268
21534
4576
936
4933
3872
2519
Completion
rate b)
36.7
41.2 31
27.2
10.3
63.9
38.6
13.4
Found
employment c)
48864
(37.1)
36223
(38.8)
7299
(33.9)
1672
(36.5)
517
(10.5)
1608
(41.5)
607
(24.1)

20. ALMPs: Employment Stabilization Programs
Table 3-9. Utilizations of employment stabilization programs by firm size,1998
Number of firms receiving subsidies as a share of the total number of insured firms
Firm size
Total number
of insured firms (A)
Number of firms
receiving subsidies(B)
Rate of utilizations
of subsidies(B/A)
Total
202095
1896
0.9
5-49
180043
755
0.4
50-99
12688
366
2.9
7316
445
6.1
1055
118
11.2
670
103
15.4
1000and over
323
109
33.7
Source : KLI(1999b).

21. Public Employment Services
Table Public and private employment offices
Ministry of Labor offices
Local government offices
Private employment offices
1995
1999 a)
offices 52
142
285
1271
1756
staff
1000
3200
360 ..
3500
..:Data not available
a) 31st December
Source L Ministry of Labor.

22. Public Employment Services

23. Public Employment Services
Table Basic PES flows, stocks and market share indicators
Korea a)
Belgium
Den
mark
Fin
land
Germany
Ire
Japan
Nether
lands
Spain
United
Kingdom
States
1995
1998
1993
1994
1996
PES
Administrative
data (000s)
Annual
vacancy
registrations b)
130
335
149
157
145
3133 45
5465
272
534
2537
6038
placements c) 12
138
109 82 76
2347 17
1448
174
495
1927
2205
Labor
market
data
Dependent
employment
(000S)
12740
12190
2990
2340
1716
32093
1034
52360
5920
8626
21907
118873

24. Public Employment Services
Table Basic PES flows, stocks and market share indicators
Korea a)
Belgium
Den
mark
Fin
land
Germany
Ire
Japan
Nether
lands
Spain
United
Kingdom
States
1995
1998
1993
1994
1996
Monthly
Hiring rate
(approximate) d)
2.7
1.7
1.1 3
2.2
1.6
2.5 ..
Derived
indicators(%)
Placements/
registered
job vacancies 9 41 73 53 52 75 38 26 64 93 76 37
Registered job
vacancies/
Dependent
employment 1 4 5 7 8 10 6 12
dependent 2

25. Public Employment Services
Table Basic PES flows, stocks and market share indicators
Korea a)
Belgium
Den
mark
Fin
land
Germany
Ire
Japan
Nether
lands
Spain
United
Kingdom
States
1995
1998
1993
1994
1996
Registered
job vacancies
/hiring 3 13 39 19 32 51 22 23 ..
Placements/
hiring 6 28 10 17 38 8 14 29
..:Data not available.
a) Placement and vacancy data refer to the chain of PES offices administered by the Ministry of Labor.
b) Vacancies notified to the PES by employers (in Denmark, also vacant positions advertised in newspapers and used by PES).
c) Countries may use different definitions, such as placements filled with the active help of the PES, or placements into vacancies notified to the PES which have been filled by PES registered job seekers.
d) Monthly new hiring as a percentage of dependent employment. Estimates for OECD countries are based on a combination of data from labor force surveys (job tenure less than one year, number of job changes in the last three months), employer surveys (number of external hires, new employment contracts in the private sector) or administrative records of hiring kept by the PES. The Korean figures are based on smaller firms and that a small number of job starts consists of transfers within the same company or establishment.

26. Characteristics of Employment and Job Training Programs
Australia :
Privatization of employment service and introduction of competition system among service providers
Netherlands:
Division of private and public sectors for employment service programs
Public sector: social welfare benefits and labor market information
Private sector: assistance for active job seeking (individual level services such as counseling, planning, diagnosis, training, assisting job seeking and post management)

27. Characteristics of Employment and Job Training Programs
United States:
Workforce investment act: WIA, 1998
Improving system integration and service coordination
Providing universal access (one-stop service delivery structure)
Enhancing effectiveness of the service programs
Partnership among federal, states, local and private sectors

28. Characteristics of Employment and Job Training Programs
United Kingdom:
Department for Work and Pensions, 2001
Social welfare services and employment services
Systematic approaches for social welfare, employment, and job training services

29. Characteristics of Employment and Job Training Programs
Germany
Introduction of competition system between public and private sectors in providing employment
Voucher system in assisting job seeking services (2004)

30. Implications for Romania Employment and Job Training Services
Needs to provide comprehensive services: one stop service for employment, job training, and welfare services
User friendly services
Providing customer specific services
Establishment of partnerships among related parties and outsourcing through private sectors
Targeted group approaches
Services for employers