Romania Inclusion of Vulnerable Groups on Labour Market

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    ROMANIA

    Warsaw Poland25 June 2009

    Inclusion of vulnerable groups on labour market

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    National Strategic Report on Social Protection and

    Social Inclusion (2008 2010)

    Priority objective 1 Increasing the employability for vulnerable

    Increasing the life condition of the citizens by stimulating participation on labour market, and also by

    developing the entrepreneurial spirit of all but especially of the vulnerable groups developing

    social economy

    Active inclusion on labour market for persons with disabilities by developing the necessary tools for

    assessing the vocational abilities and by developing adequate social services in order to facilitate the

    employment of this category

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    Vulnerable groups

    with difficult access tolabour market

    - Care livers

    - Single mothers withchildren

    - Young families withchildren

    Young families withoutchildren

    - Young people underdetention

    - young people

    - Long term unemployed

    - + 45 years

    - Persons convicted

    - Handicapped persons

    - Persons living in rural area

    Law no.76/2002 Law no.116/2002

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    Labour market in Romania

    Unemployment on May 2009:

    -Unemployment rate 5,8%

    -Unemployment rate (female)

    5,4%

    -No. of unemployed people

    (recorded): 526.803 persons

    Unemployment structure on education levels (May 2009):

    77,9 % - compulsory education (vocational)17,9 % - high school education level

    4,2 % - university level of education

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    Unemployment rate during Dec. 2004 Dec. 2008

    Unemployment rate had decreased during Dec. 2004(6,3%) Dec. 2008 (4,4%) with 1,9 points

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    Registered unemployment rate 2009

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    Unemployment rate EU 27

    (2007)

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    Organizational structure -at

    national levelMinistry of Labour,

    Family and Social

    Protection

    National

    Authority for

    Disables

    People

    National

    Authority

    for Child

    Protection

    Rights

    National

    House ofPension

    (N.H.P.)

    National

    Agency forEmployment

    Labour

    Inspection( L.I.)

    Social

    Inspection National

    Agency forSocial Benefits

    RSI

    CASB

    National

    Agency

    for Family

    Protection

    National

    Agency

    for GenderEquality

    DLSP

    CHP CAE

    TLI

    Institutions subordinating to MLFSP

    Institutions under MLFSP authority

    Institution subordinating to

    MLFSP with own financing

    Superior commission

    for assessing the adult

    with handicap

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    MEASURES ADDRESSED TO INCREASE THE EMPLOYABILITY OFVULNERABLE GROUPS

    I. Measures for employment stimulation

    II. Stimulating the labour mobility

    III. Stimulation of employers

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    Measures for employment stimulation:

    Unemployment benefit 50% of minimum gross salary on economy for a period of 6

    months :

    Graduates of education institutions at least 16 years old

    Graduates of the special schools for young people with handicap at least 16 yearsold.

    Bonus equivalent with 1 minimum gross salary on economy - if the young person

    take up a job with regular working schedule for at least 12 months

    A benefit in an amount equal to the unemployment benefit to which the graduates

    would be entitled up till the expiry period of unemployment

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    Measures for employment stimulation:

    Career information and counseling

    Vocational training

    Specialized job fair

    Granting credits in favorable conditions (lower interest)

    Assistance and consultancy for business start-up

    Are insured in the health assurance system

    Are insured in the social assurance system

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    Stimulating the labour mobility:

    Employment bonus (2 minimum gross wages on the economy)for the

    person who take-up employment in a locality at more than 50 Km away from

    the locality where they have their stable domicile

    Establishment bonus (7 minimum gross wages on the economy) for the

    person who take-up employment in another locality and, in consequence,

    change their domicile.

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    Stimulation of employers:

    The employers who hire graduates are exempted, for a period of 12 (18)

    months, from the payment of social contribution to unemployment

    budget as a complement they are entitle to a monthly subsidize of:

    1 minimum gross salary on economy for the graduates of the lower cycle of the high-

    school or of the art and trade schools

    1,2 minimum gross salary on economy for the graduates of the higher secondary

    education or of the post-secondary education

    1,5 minimum gross salary on economy for the graduates of the universitary

    education.

    Financial support for no more than 2 years equal to social contributions

    granted for each persons that remain employed.

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    PersonalPersonal social support for youth facing socialsocial support for youth facing social marginalizationmarginalization::

    I. Insertion employers

    II. Solidarity contracts

    III. Special mediation

    IV. Vocational /counseling services

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    Solidarity contracts concluded in 2008 : 1436

    other young people in

    difficulties 722

    young familists convincted

    1

    young families w ithout

    children 211

    young people leaving the

    child protection system

    193

    single young person w ith

    children 79

    young families w ith

    children 197

    young people leaving the child protection system single young person with children

    young families w ith children young families w ithout children

    young familists convinct ed other young people in diff iculties

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    other young people in

    difficulties 638

    young familists convincted

    1

    young families w ithout

    children 185

    young people leaving the

    child protection system

    157

    single young person w ith

    children 66

    young families w ith

    children 182

    young people leaving the child protection system single young person w ith children

    young families w ith children young families w ithout childrenyoung familists convincted other young people in difficulties

    Labour contracts concluded in 2008 : 1229

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    Special measures for employment of disabled

    persons

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    Disabled persons may be employed according to their professional background

    and labor capacity, attested by the handicap degree certificate, issued by the

    evaluation commissions at a county level or of the Bucharest municipality

    sectors

    The employment of the disabled person is made in the following forms:

    a)on the free labor market

    b)at the domicile

    c)in protected forms: protected workplace authorized protected unit.

    The public institutions and authorities, the legal, public or private persons

    having at least 50 employees have to employ disabled persons representing at

    least 4% of the total number of employees

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    The authorized protected units shall benefit from the following rights:

    exemption from the payment of taxes for authorization upon establishment and

    for reauthorization

    exemption from the payment of the tax on profit, if at least 75% of the fund

    obtained by exemption is reinvested for restructuring or for the purchase of

    technological equipment, machines, tools, work installations and /or

    arrangement of the protected workplaces

    other rights granted by the local public administration financed from its own

    budget

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    With a view to stimulatingthe employersto hire disabled persons, there are

    granted certainrights,such as:

    the deduction upon the calculation of the taxable profit of the amounts related to the adjustmentof the protected workplaces and to the purchase of the tools and equipment used in the

    production process by the disabled person

    the deduction upon the calculation of the taxable profit of the expenses related to the transport

    of disabled persons from the domicile to the workplace, as well as of the expenses related to the

    transport of the raw materials and finished products from and to the domicile of the disabled

    persons hired for home work

    the reimbursement from the unemployment insurance budget of the expenses related to the

    professional development, training and counselling and to the employment of the disabled

    persons

    government subsidy, under the conditions set forth by the law regarding the unemployment

    insurance system and promoting of manpower employment.

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    On 2008 December 31, the number ofpeoplepeople withwith disabilitiesdisabilities employedemployedwas 25.705 (versus

    21.906 at 31.12.2007) of which 2.607 are with severe degree, 19.357 pronounced degree,

    followed by those with medium and light degree.

    The share of the persons with handicap employed December 2008:

    Total population 21.528.627

    Total employees 4.765.200

    Total number of persons with

    handicap

    631.199

    Total number of persons with

    handicap employed

    25.705 4,7% from total number of persons

    with disabilities

    0,53% from total number of

    employees