Education, workforce integration, and social inclusion: how does Romania compare with the European Union?

Tanase, A. M. P., Titan, E., & Caragea, I. (2025). Education, workforce integration, and social inclusion: how does Romania compare with the European Union?. CACTUS - Journal of Tourism Business, Management and Economics, 32 (1). doi.org/10.24818/CTS/7/2025/2.02

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Licensed under CC BY-NC 4.0

Abstract

Education and workforce integration are essential in the 21st century, particularly in discussions of sustainable economic growth and social cohesion. Furthermore, synergy between academic outcomes and labour market demands is crucial for fostering innovation, reducing unemployment, and maintaining competitiveness in the current economic landscape. Proper allocation of resources within the educational system not only enhances skill development but also improves the workforce’s ability to adapt rapidly to technological advancements. This paper examines the performance of European Union countries in a single year within this sector, using seven key variables related to education and the workforce. Principal Component Analysis was conducted to reduce dimensionality and identify three main components that summarise the variance observed in the data. The findings reveal considerable differences among EU countries regarding the coordination between education and workforce demands, largely due to inconsistent investment in education. Additionally, based on the three main components identified, cluster analysis was performed, revealing distinct groups of countries with similar outcomes, including high-performing countries with well-integrated education and employment systems, and low-performing countries where poor resource allocation has limited employment adaptability and economic engagement. Overall, the evidence highlights the importance of policies that reduce disparities, promote talent development, and strengthen the link between education and workforce demands, ensuring that future challenges are met with resilience and prosperity.

Keywords

tertiary education, school dropout, youth employment, social exclusion, workforce integration

JEL Classification

I21, I25, I26

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