Quantifying Labour Shortages in Central and Eastern Europe: Standardized Methodologies for Sustainable Solutions

Abstract

Over the past two decades, Central and Eastern Europe has been significantly impacted by labour shortages, primarily caused by the migration of workers to Western Europe. In response to these shortages, many countries in the region, including Romania, have increasingly relied on migrant workers from outside Europe. In this context, using standardized methodologies for quantitatively measuring labour shortages becomes essential for developing effective public policies. This presentation explores the applicability of the labour market diagnostic tools developed by the World Bank, such as the Job Generation and Growth Decomposition Tool, the Jobs and Structural Change Excel Tool (JSCS), and the Jobs Group Demography Tool, to accurately assess labour market needs. Through these tools, we will analyze the impact of labour shortages on Romania's labour market, the contribution of migrant workers, and data-driven solutions aimed at ensuring labour market sustainability in the face of growing migrant inflows. Additionally, we will discuss the feasibility of attracting native workers from the diaspora as an alternative solution.