Abstract:

In a world which is constantly moving towards globalization, the global economies cannot be equalized without taking into account the labour force migration, a phenomenon which is typical to all the states in which the free movement of citizens applies. In a dynamic economy, labour force migration is a natural phenomenon, which is based on skills and rights of individuals to move freely. This phenomenon has a positive impact both on the country which receives the human capital and the country from which the human capital migrates. However, if the migration phenomenon is not properly managed, it could have negative impacts, especially in countries which supply human capital to other countries. On one hand, these impacts may be demographical, and on the other, they may contribute to income tax losses caused by the state investments in training the human capital which subsequently migrates and which can no longer pay taxes to the state. Romania is quite hardly hit by the labour force migration, especially in the case of highly qualified labour force. This phenomenon has become quite concerning especially because Romania has developed no qualified youth retention policy and showed no interest in finding a solution to solve this problem. This paper intends to analyse the situation of labour force in Romania compared to other EU states, as well as the impacts of this phenomenon on the economy and labour force.