222 Procedia of Economics and Business Administration ISSN: 2392 – 8174, ISSN-L: 2392 – 8166 Available online at www.icesba.eu Cluster Analysis of the EU Countries in Terms of Labor Market Indicators Daniela PAȘNICU 1 , Speranța PÎRCIOG 2 , Cătălin GHINĂRARU 3 , Gabriela TUDOSE 4 1 2,3,4 INCSMPS, USH, Bucharest, Romania Email: danielapasnicu@yahoo.com Abstract: Dynamics of main indicators in the EU labor market context reflects that the EU labor market as whole remains tense, and that differs substantially from one country to another. This paper includes an analysis of recent developments in labor market participation, employment, unemployment, education level with special concerning on data disaggregated by age and sex. Paper aims to group the EU countries according to key indicators of the labor market for gaps and similarities identification in order to achieve the objectives of cohesion policies at EU level. To achieve this propose it was used hierarchical cluster analysis method. Keywords: labor market, cluster analysis method, employment, unemployment, cohesion policies, vulnerable groups. JEL classification: E24, E19 1. Introduction A priority of the Europe 2020 strategy is the promotion of an economy with a high rate of employment, ensuring social and territorial cohesion. In this context, the Commission proposed as main objective that 75% of the population aged 20 to 64 should have a job till 2020 year. However, recent dynamics (2010-2013) of the main indicators of the labour market in the European Union reflects the situation across the EU and that remains tense and differs substantially from one country to another. Following the period of economic crisis which has wiped out years of economic and social progress, changes in the unemployment rate was scored on an upward trend, both in EU and Romania, in 2008-2013 the unemployment rate increased by 3,9p.p. in E.U. and by 1,5p.p in Romania. Although for some indicators have seen some positive signs, such as 2,3,4 INCSMPS, Bucharest, Romania, pirciog@incsmps.ro, ghinararu@incsmps.ro, gabriela_tudose@yahoo.com