Eurostat published this week a series of data on formal education discontinuation and youth labor market participation, which the Romanian press has also covered. Since participation in formal education is one of the topics AmCham closely monitors and analyzes in depth through a study conducted with the University of Bucharest last year, the reported extremely low percentages for school dropout in Romania immediately drew our attention, given the scope and implications of this worrying and costly social phenomenon.

In this context, we consider it our responsibility to highlight that the latest Eurostat data must be interpreted with the methodology in mind, as they capture a different phenomenon from actual school dropout—namely, interruptions in studies, i.e., leaving a formal education program at least once during one’s lifetime. The data published this week show that 1.5% of individuals aged 15–34 in Romania have interrupted a formal education program at least once in their lifetime. However, the highest qualification level achieved by these individuals is not specified. Therefore, this indicator only shows that, once enrolled in a formal education program, Romanians complete it at a higher rate than their peers in other EU Member States.

For a statistically meaningful comparison among EU Member States, the standard indicator for school dropout is the Early Leavers from Education and Training (ELET) rate. This measures the share of 18–24-year-olds who have attained at most lower secondary education (ISCED 2) and are not participating in any education or training program at the time of measurement. The most recent Eurostat data for this indicator (May 2025) show that in Romania, the early school leaving rate in 2024 was 16.8%, the highest in the European Union, slightly up from 16.6% in 2023, and significantly above the EU average of 9.3%.

These two datasets do not contradict each other; they describe different realities: interruptions in the educational pathway versus actual school dropout, the latter remaining a major vulnerability for Romania. Correlating the two datasets shows that, although Romanians aged 15–34 who enroll in a formal education program have a high probability of completion compared to their peers in other EU Member States, nearly twice as many young Romanians do not surpass ISCED 2, indicating significant losses of human capital from the early stages of education.

We want to state clearly: Romania loses too many children from the very early years of the educational journey and at all levels of the education system. The systemic reality remains one of high risk, with direct effects on economic competitiveness and social cohesion. There is no justification for accepting this failure or depriving children of their right to education and a decent future. Fragmented or limited interventions by business and NGO sectors are insufficient, which is why we reiterate the call for adapted public policies, coordination between central decision-makers and responsible local authorities, and, crucially, allocation of funding for measures to prevent and reduce school dropout.

Our appeal is grounded in the results of the economic impact analysis of school dropout conducted for AmCham Romania by the University of Bucharest and in the realities known to all stakeholders in the education system, from policymakers to beneficiaries.

The AmCham & University of Bucharest 2024 Report on the Economic Impact of School Dropout in Romania highlights alarming socio-economic costs:

• Romania has one of the highest Early School Leaving (ESL) rates in the EU—16.6% in 2023—with pronounced vulnerability in rural areas. After several years of decline, this rate increased to 16.8% in 2024. On average, Romania has lost approximately 23,000 students per cohort since 2005.
• Annually, the phenomenon generates losses of €2.3 billion (0.77% of GDP), with cumulative losses reaching €15.7 billion (5.23% of GDP) by 2024.
• Over a lifetime, the total cost of individuals who dropped out of school amounts to €107 billion (approx. 35% of GDP).
• A student who drops out earns nearly €200,000 less over their lifetime than a high school graduate. Costs for the state include lost tax revenues, additional healthcare and social support expenditures, and the impact of associated criminality, mainly affecting health and lost taxes, which are difficult to quantify directly in budgets.

The realities highlighted in the University of Bucharest study are confirmed by the latest OECD “Education at a Glance 2025” report, showing that Romania faces major educational vulnerabilities: the highest early school leaving rate in the EU, 22% of 16–24-year-olds classified as NEET (Not in Employment, Education, or Training), a decline to 23% in higher education attainment among 25–34-year-olds—placing Romania among the few OECD countries where this indicator is decreasing—while difficulties in ensuring basic skills for labor market integration persist.

Regarding early school leaving (dropout), we also note several relevant aspects for measuring the phenomenon:

• Within the EU, education systems are nationally managed and not harmonized by binding EU policies. This autonomy generates significant differences in definitions, methodologies, reporting criteria, and administrative practices, limiting direct comparability among the 27 national education systems.
• Our experience in producing the AmCham report with the University of Bucharest showed that measuring dropout is challenging even at the national level, due to insufficient, uncorrelated, delayed data, and inconsistent methodologies. Structural issues also affect reporting, the most important being per capita funding in the education system. As long as a student is officially enrolled, the school has an incentive to keep them on the register, even if attendance is low or the educational trajectory is discontinuous. This can lead to underreporting of early school leaving and distorted statistics in some cases.

We emphasize the need for internal efforts to define school dropout and related indicators more clearly, to ensure accurate and transparent reporting at all levels (school, regional, and national), and to collect data based on these clearly defined indicators to support public policies with statistics that reflect reality.

Regarding solutions for early school leaving, AmCham Romania considers it crucial that public policies focus on early prevention and systemic interventions, ensuring that every child has a real chance to stay in school and complete their educational pathway. One remedial measure that has proven effective in other countries is the combination of permanent provision of school meals, as a social measure to prevent poverty and support school attendance, and the implementation of high-quality remedial education. Access to a daily nutritious meal provides disadvantaged children with a concrete mechanism to attend school, supports concentration and academic performance, and reduces economic pressure on families.

For the upcoming budgetary exercise, we consider it essential that, until the target of extending school meals to 1 million beneficiaries under Law 198/2023 (threshold suspended until 2027 as part of austerity measures) is achieved, the Ministry of Education and Research ensures the continuity of the “Healthy Meal” program starting January 2026 in all schools where it operated in 2025, without interruptions. In the absence of multi-year budgeting mechanisms, it is especially important that the Ministry initiates all necessary administrative steps early, including adopting regulations that establish the list of eligible schools, so that implementation can proceed without delays throughout the school year. Additionally, operational and technical support for local public authorities is needed to carry out public procurement procedures efficiently.

AmCham Romania understands the current macroeconomic challenges and budgetary constraints, but without systemic interventions to support vulnerable children and reduce school dropout risk, sustainable and competitive economic recovery cannot be ensured. We again call on policymakers to treat public education as a strategic investment in Romania’s future.

Social support measures—such as access to school meals—are complementary and essential to removing barriers that impede real access to education, but they cannot substitute for the quality of educational provision.

Historically, the competence level of human capital has been Romania’s main competitive advantage, a decisive factor in attracting investment and developing strategic industries such as IT, services, and advanced manufacturing. Without coherent and systemic interventions in education, this advantage will erode to a critical point beyond which sustainable economic performance cannot be built.

***

• Eurostat release
• Report on the Economic Impact of School Dropout in Romania, 2024 - an AmCham Romania Study conducted by the University of Bucharest
• OECD Education at a Glance 2025, Romania Country Note