The Evolution of Economist's Labour Market in Romania

The increase in the ratio of students attending low frequency and open distance courses are the expression of young people entering the economic activity[5] collateral to participating to the educational process.

From viewpoint of the specialization structure in the session 2003-2004, was noted a increase in the ratio of technical university students with 0,2 percent comparative to the year 2000, reaching 22,3 percent. Within the specializations ratio, the academic area has 30,2 percent, followed by the economic profile (27,8 percent), law school (9,8 percent) and medical- pharmaceutical (5, 3 percent).

In the short-term education, the ratios are: 39,7 percent in the academic area[6], 32,2 percent in the technical field, 13,2 economics and 14,9 percent in the field of agriculture, medical- pharmaceutical and artistic.

Excepting the technical and agricultural education, the ratio of female students is overwhelming.

Can also be mentioned that the particular alternative within education offer is well represented in the higher education area. Considering that in the session 1995/1996, the number of students of these institutions was 85.305, it reached 139.038 in the session 2002/2003 and 143.905 in the session 2003/2004. In 2003/2004 was noticed a increase with 4,9 thousands correlated with the year before. The ratio of this category of students within the total number was 23,2 percent.

All the institutions of higher educations are located in municipalities and towns, the region Bucharest-Ilfov having the biggest ratio (30,7 percent) as much in the public sector (25 percent), as the private one (49, 5 percent), followed by the region North-West with 14 percent. The region with the smallest ratio is the Southern (6,5 percent).

Coming back to the position of the Academy of Economic Studies, in the figure 2 is presented the number of graduates with superior studies, beginning with 1990 until 2005, with the emphasis of ASE.

Figure 2. The number of graduates with superior economic studies - total and ASE

Source: INS, 1990-2006.

Can be remarked the position still dominant of ASE on the market of economic universities in Romania, the market of the economic preparation area being in a "atomization process" by establishment of private universities in regional localities even small sized in terms of population and potential candidates. Table 1 presents the percentage evolution of ASE quota within all graduates of economic studies.

Table 1. Evolution of market quota of ASE from viewpoint of the number of

graduates in the economic area

Source: Processed data provided by INS for the 1990-2006 period

A graphic representation of the market quota of ASE is presented in the next figure (Figure 3), the image highlighting the strong decrease noticed between 1990 and 2000 and the relative stabilization afterwards.

Figure 3. The market quota of ASE from viewpoint of the weight of the graduates

in the economic area

Source: Processed data provided by INS for the 1990-2006 period

The competition become harsh on the market of economic universities through the establishment of economic faculties inside of state and private institutions and gradually diminished the market quota held by the Academy of Economic Studies, from half in 1990 and a third – 34 percent - in 1998, to a level placed around the value of 20 percent (18 percent in 2004 and 22 percent in 2005).

Another aspect we believe attractively is incident to the size of the large ads. Each large add was measured from viewpoint of the length and the width in order to compare also the area, not only the frequency of appearance. Wasn’t considered if the add was polychrome or monochrome, and consequently, the average price that can be estimated may be a little underestimated[7].

The average area of the ads monitored and measured was of approximately 265 cm². Considering the listed price of a black-and-white ad means that for each appearance was paid, on the average, about 500 Euro. We can suppose that, at large, the positions announced within large ads are important and obvious the retributions are on measure.

Figure 4. The structure of the offer of labor places depending on field of expertise

Source: Own researches 2006: written press and specialized websites

The “fight” between "small ads" versus "large ads" and "specialized websites" appears natural pursuant the fact that, usually, in the large ads the positions are definitely dominated by positions corresponding to superior studies compared to the positions for unqualified or qualified workers with no superior studies which appear more frequently in the case of small ads. Regarding the specialized websites the situation looks similar if we take into consideration the profile of the surfers on the internet. Thus, for instance, a firm that want to hire a caretaker has little or no chance to find it among the persons that searches a work place on the internet.

The economist’s eligibility for a certain job is determined by specific educational demands, mentioned on the most of the ads, or by the fact that one notices relatively vague ad (we hire young person with superior studies, knowledge of PC, driving license, experience in marketing, without obligations, speaking English language is an advantage etc.).

Figure 5. The structure of supply of labor places depending on the geographic zone

Source: Own researches 2006: written press and specialized websites

Data indicates a domination of the capital city within the supply of labor places (72,8 percent for the small ads, 51,9 for large ads and 62,7 in the case of the notices on the specialized websites), the capital city having also the lowest unemployment ratio (2,6 percent[8]).

The bigger number of labor places in the case of small ads offers us and the decryption key. For the proper positions corresponding to low levels of studies are preferred small ads in local newspapers, known the local affinity for the local press.

Large ads, correlated with the attractive salaries, are prevalent published in a national quotidian because in these cases can be considered also and a possible relocation of the employee, a relatively new aspect and which no longer represents a characteristic of the western countries.

Figure 6. The structure of supply of labor places in Bucharest depending on field of expertise

Source: Own researches 2006: written press and specialized websites

Given the location of ASE in the capital city (mainly, the territorial centers having low age, low attendance number, and mostly a low impact) we intended to study also and the field of expertise of the ads Bucharest.

Were registered high rates in the case of internet ads or large ads, situation strictly correlated to the reorganization and development of economic area within the last years. Thus, shortly after 1989 appeared departments or even companies specialized on sales, marketing and brokerage, also in exponential rhythms developed the insurances companies, the banking sector from an incipient development level reached a explosive evolution, each one of the more than 500 IMM (Small and Medium Companies) requires financial and accounting assistance from specialists or specialized companies. Besides this fact, in ASE, the faculty of CSIE “produces" graduates that are successfully integrated and non-economical jobs[9], such as the one in the informatics area or in the area of modeling processes of decisional fundaments, in departments of analyses and strategists etc.

b) The demand of labor places

The estimation of the demand of labor places in general and of economists in particular, was accomplished using the same informational sources as the estimation of the supply. But on the other way the demand of labor places in the economic area can be estimated also by starting from the number of graduates (fault-free number with a percentage of those which are working already) whereat are added the graduates from older generations which are in quest of a place of labor. Another aspect implies that for a certain price (salary package), almost any employee can enter into the category of persons that forms the demand. In other words a employee that doesn’t search for a place of labor can accept a offer for a position in a  organization without the classic necessary steps (deposit CV, initial interviews etc.). Consisted so the size of demand is relatively “volatile”, function of the work price. Given the situation in which is found our country, when salary raises (because of the imminent U.E. integration, of the appreciation of national currency) has become a usual fact that raises to relative high quotas the point where the demand meets the supply, leads to the mentioned “volatility”. In the table 3 are presented the results of monitoring the written press and websites.

Table 3. Estimation of places of labor demanded

Source: Own researches 2006: written press and specialized websites

Figure 7. The structure of the applications of labor depending on area

Source: Own researches 2006: written press and specialized websites

From the results of the investigations undertaken, the ratio of economists in quest of a place of labor can’t be neglected. Some amendments are though welcomed. Thus, not for all people that search a place of labor means that have none at the respective moment; there is also the category of employees that want to change the place of labor (to a possibly better one).

Figure 8. The structure of the labor places demands depending on the geographic zone

Source: Own researches 2006: written press and specialized websites

Also in the area of labor places demand is maintained a the difference "Bucharest" -"province", because the persons in quest of a place of labor in other localities of the country use, with preponderance, the local newspapers.

Regarding the www environment, the weight of the capital is reduced significantly but, most likely due to a rate of development of the Internet, and is registered thus a level (50,2 percent) high above weight hold by the capital in all the economy.

Figure9. The structure of labor places demand in Bucharest, depending on field of expertise

Source: Own researches 2006: written press and specialized websites

The previous reflections regarding the areas of interest of those that demand a labor place also keeps their signification in this case.

The high levels of demands of labor places placed by graduates of economic universities can indicate a higher mobility of the work force on the market, but also in a certain measure a masked advertising for consultancy services, as well as a weak insertion on the labor places market. Given the fact that the unemployment in Bucharest is among the lowest in the country, maybe the third presumption is the least plausible.

Secondly the encounter between demand and supply from labour market is also set by labour price. Labour price is given by salarial package as contracted. Normally salarial package contains more than simple salary[10]. According to the preliminary results of student’s survey mentioned before, in the case of the ASE graduated income, studied from financial point of view, we may conclude that the average ASE graduated income is situated at 440 Euro which is significantly higher than national average salary of 240 Euro[11] (financial intermediations 732 Euro, industry 238 Euro, IT and research 364 Euro, administration 364 Euro, education 255 Euro). Using geographical criteria, the Bucharest-Ilfov region register an average salary of 295 Euro much more than 217 Euro as it is in North-East region.