The analysis of labour market rigidities in Romania

The labour market rigidity is a very important issue for world economies, especially in times of crisis when the need to face the competition calls for increasing the capacity of workers and employers to adapt to market needs. If is rigid, labour market failed to adjust quickly and efficiently to changes in the global economy and in investment opportunities.

This becomes critical under crisis conditions, as it is the case of the financial and economic crisis that has marked the last years, because the degree of labour market rigidity is very important for the ability of economies to absorb shocks. For a country that is preparing to join the Monetary Union, the problem becomes more acute taking into consideration the fact that by ceding the monetary policy to the European Central Bank and setting the exchange rate by the euro it increases the need to know to what extent the current labour market rigidities may be obstacles to future shock absorption and the necessary measures to reduce them by increasing the degree of labour market flexibility.