CHALLENGE OF CONTEMPORARY LABOUR MARKETS: UNEMPLOYMENT, LABOUR GAPS, AND CROSS-BORDER MIGRATION

Contemporary labour markets are increasingly affected by structural imbalances driven by demographic decline, labour mobility, and persistent mismatches between available skills and labour demand. Romania’s labour market illustrates these challenges clearly, as large-scale emigration of the active population, limited employment opportunities in small towns and rural areas, and uneven regional development have generated significant labour shortages alongside relatively low aggregate unemployment rates. This apparent paradox reflects deeper inefficiencies in labour allocation. This paper analyses unemployment trends, labour gaps, and cross-border migration in Romania within a comparative European framework, with particular attention to the labour market position of Generation Z. Although young people represent a key resource for long-term workforce sustainability, their integration remains limited due to higher youth unemployment, difficulties in the transition from education to employment, and persistent skill mismatches. At the same time, workforce deficits in major economic centres have intensified Romania’s reliance on economic immigration, particularly from Asian countries, as a short-term response to labour shortages.The findings show that while labour immigration alleviates immediate workforce gaps, it cannot represent a sustainable long-term strategy in the absence of coherent domestic labour market policies. Structural weaknesses persist in vocational training systems, youth employment measures, and regional development strategies. The paper concludes that Romania’s labour market challenges require an integrated policy approach combining investments in reskilling, improved working conditions, targeted support for the labour market integration of Generation Z, and the responsible management of cross border migration to ensure long-term labour market sustainability within the European context.