Romania has made significant labour market and social progress in recent years. However, employment remains low by OECD standards, especially for women, and a rapidly declining and ageing population will have important implications for the labour market and the economy. In addition, large labour market disparities persist, and informal employment remains very high compared to OECD countries. Too many young people do not acquire the basic and vocational skills they need to enter the labour market, and participation rates in adult education are lower than in most OECD countries. Despite rising living standards, poverty remains more common than in most OECD countries, and minorities are particularly disadvantaged. This report provides an overview of the main labour market and social challenges facing Romania, as well as a comprehensive analysis of Romania's policies and practices compared with best practice in OECD countries in the areas of labour, social and migration policies. It also gives recommendations on how Romania can address key challenges.