At the end of 2024, Romania hit a new negative record, becoming the European Union member state with the highest youth unemployment rate among those under 25. According to Eurostat data published in December 2024, 26.3% of young Romanians active in the labor market were unemployed, surpassing even Spain and Greece, which have long struggled with this structural issue. These alarming figures are also reflected in the latest report by the Social Monitor, a project of the Friedrich Ebert Foundation Romania.
A Paradox: Low Overall Unemployment, But Critical Among Youth
Paradoxically, despite this negative record, Romania’s overall unemployment rate remains relatively low at 5.7%, close to the EU average of 5.8%. This is significantly lower than in Spain (10.6%), Greece (9.3%), or Finland (8.7%). However, when looking at youth employment, the picture turns grim. Romania is now the European “champion” of youth unemployment, followed by Spain (25.2%), Sweden (23.5%), and Greece (22.5%). The EU average for this age group stands at 14.6%, showing that Romania is far above this threshold.
Gender Differences and European Trends
An interesting aspect of this phenomenon is the gender balance in Romania’s youth unemployment rate, a rare occurrence at the European level. For example, in Lithuania, the unemployment rate among young men is just 5.5%, while for women, it reaches 18.6%. A similar contrast is seen in Greece, where 26.3% of young women are unemployed compared to 19.9% of young men. On the other hand, in Luxembourg and Belgium, the trend is reversed, with higher unemployment among young men than women.
NEET – A Worsening Problem
Another alarming indicator is the NEET rate (young people under 29 who are neither employed nor enrolled in education or training). In 2024, Romania recorded the highest NEET rate in the EU at 19.4%, significantly exceeding the European average of 11%. This situation highlights not just a lack of job opportunities but also a widespread sense of discouragement and limited prospects for young people.
Why Is Romania Leading in Youth Unemployment?
Several chronic issues contribute to this crisis:
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Mismatch between education and the labor market – Many graduates complete studies that do not align with employers’ needs.
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Lack of opportunities for young people – Employers are often reluctant to hire candidates without experience.
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Labor force migration – Skilled young workers leave the country, while those who stay either struggle to find jobs or lack motivation to work.
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Insufficient active labor policies – Subsidies for employers, apprenticeship programs, and incentives for start-ups are inadequate.
What Solutions Exist?
To reduce the alarming youth unemployment rate, Romania needs a well-structured package of social and economic policies, including:
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Investment in education and vocational training – Aligning curricula with labor market demands.
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Incentives for employers – Subsidies and tax benefits for companies that hire young people.
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Entrepreneurship programs for youth – Support for start-ups and easier access to funding.
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Campaigns promoting youth employment – Encouraging a shift in employer attitudes.
Without concrete measures, Romania risks remaining trapped in this vicious cycle of high youth unemployment, with serious long-term consequences for the country’s economic and social development.
