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A recent report of the European Commission regarding country analysis on Social Convergence Framework (SCF) points out the problems of Romania, where high poverty - low education constitutes a vicious circle. Therefore, the quality, relevance and inclusiveness of education and training should be strongly tackled by public policies to support labour market and improve poverty rates.

Poverty and inequality, still at high levels

Romania still faces considerable poverty risks and inequality, with significant disparities across population groups and regions. Even though the overall share of people at risk of poverty or social exclusion (AROPE) has declined since 2015, by 12.5 pp to 32% in 2023, it remains among the highest in the EU (34.4% vs 21.6% in the EU in 2022), with important differences across regions (ranging from 12.3% in Bucharest-Ilfov to 45.3% in the South-East in 2023).

Rural areas are still confronted with much higher AROPE rates (45.1% vs 18.5% in cities in 2023), despite improvements in recent years. Factors contributing to high poverty risks include the still low availability of economic opportunities and reduced access to educational, health, employment, and social services, as well as to adequate social protection.

The AROPE rate of older people (65+) was 32.3% in 2023 (down from 37.2% vs 20.2% in the EU in 2022). The severe material and social deprivation rate was also high at 19.8% (down from 24.3% vs 6.7% in the EU in 2022). Women and vulnerable groups, including persons with disabilities and the Roma, are also subject to more important poverty risks. The AROPE rate for women was 2.2 pp above that for men in 2023, and stood at 39.4% in 2023 for persons with disabilities (down from 42.9% vs 28.8% in the EU in 2022).

Income inequalities have decreased and are the lowest since 2007, but are still higher than the EU average. In 2023, the income of the richest 20% of the population was 5.8 times higher than that of the poorest 20% (down from 6.0 vs 4.7 in the EU in 2022). Although policy measures were put in place in recent years to address the disadvantages of the Roma, the share of Roma at risk of poverty (AROP) has even increased by 8 pp between 2016 and 2021 (78% vs 22.5% for the general population in 2021).

Overall, 6 million persons were at risk of poverty or social exclusion in 2023, against 7 million in 2019, showing some progress towards the national target of 2.5 million fewer people at risk of poverty or social exclusion by 2030, but also the need for further efforts to deliver on the target.

The share of children at risk of poverty or social exclusion is particularly high. The AROPE rate for children was at 39.0% in 2023 (down from 41.5% vs 24.7% in the EU in 2022, among the highest). Severe material and social deprivation among children reached 22.6% in 2023 (down from 30.8% vs 8.4% in the EU in 2022). Roma children experience particularly important poverty risks (79% in 2021), with a significant gap between girls (83%) and boys (75%).

More generally, children in Romania face among the most important barriers in the EU to attending quality educational and extra-curricular activities. Their significant poverty risks are closely tied to the socio-economic situation of their parents, including their low educational attainment. Labour migration also plays a role, with one in four children having had a parent working abroad in 2022.

In its national action plan for the implementation of the European Child Guarantee, Romania has set a national target to decrease child poverty by 500.000 by 2030, from 1.5 million children at risk of poverty or social exclusion in 2021.

Multiple aspects are to be improved in education

Participation of young children in early childhood education and care (ECEC) is low, which may affect their future educational and labour market outcomes. Despite nearly doubling since 2020, the rate of children below 3 attending formal childcare lies at only 12.3% in 2022 (vs 35.7% in the EU), still below pre-pandemic levels.

Early school leaving remains an important challenge, especially in rural areas and among marginalised communities. The rate of early leavers from education and training is one of the highest in the EU (15.6% vs 9.6% in the EU in 2022). While the situation in cities (at 3.9%) is better than the EU average and improving in towns and suburbs albeit still high (at 13.5%), nearly 1 in 4 young people in rural areas leave school before completing upper secondary education, with a deteriorating trend since 2019.

Data from 2022 points to 1 in 10 children in compulsory schooling age from rural areas did not attend any educational institution, and 1 in 3 teenagers were absent from school temporarily or permanently because of household work, among other adverse circumstances faced by young people in rural areas, such as the need to commute long distances to attend high school.

The 2022 PISA results revealed that over 4 in 10 15-year-olds do not possess basic skills in reading (41.7% vs 26.2% in the EU), science (44.0% vs 24.2% in the EU) and mathematics (48.6% vs 29.5% in the EU). Furthermore, the underachievement gap between students from advantaged and disadvantaged backgrounds is among the highest in the EU and increasing.

Regrettably, vocational education and training (VET) appears to be misaligned with the labour market needs. Relevant is the low and decreasing employment rate of recent VET graduates (57.7% vs 79.7% in the EU in 2022). Ensuring that more VET graduates benefit from work-based learning during their training (only 8.4% did so in 2022 vs 60.1% in the EU) is essential to improving their employment prospects after graduation.

Challenges in skills development need to be addressed to support transition towards a digital economy. Less than a third of those aged 16-74 had at least basic digital skills in 2023 (27.7% vs 55.5% in the EU). This gap has widened since 2021. Adult participation (25-64) in learning over the past 12 months stood at 19.1% in 2022, 13.3 pp higher than in 2016, but still well below the EU average of 39.5%.

Moreover, participation in adult learning is highly unequal, as those who did not complete upper secondary education and training were 10 times less likely to participate in learning in comparison to those with tertiary education in 2022 (3.9% vs 41.2%, respectively). At the same time, those with lower qualifications (ISCED 0-2) witness worsening employment outcomes, with skills challenges putting at risk competitiveness, but also fairness and social convergence.

Photo source: PxHere.