Forecast of Romanian Industry Employment using Simulation and Panel Data Models

In this paper, we have built several panel data models at industry level for the period 2000-2011, by considering the impact of various macroeconomic variables, such as labour cost and average gross earnings, upon employment in Romania. A forecasting scenario was then built to forecast the employment in Romania. The results of the econometric analysis were consistent with the empirical evidence, while the analysis offered relevant inside information about the performances of the economic activities of the Romanian industry.