Tag: shortage

  • Working in Romania

    Working in Romania

    27% of
    the Romanian managers are concerned with the labour shortage reported in the
    first half of the year, according to a Confidex survey conducted by Impetum
    Group. This is 16% more than the level reported at the end of lui 2022. The
    labour shortage seems to become one of the main concerns for the business
    environment, overtaking other worrying issues such as the inflation rate and
    price rises, which were a concern for almost half of the managers interviewed
    at the end of last year, the polling company said. One solution to this
    problem, according to some managers, is to integrate public sector employees in
    the private system and to import human resources from other countries. But the
    latter has proved complicated, given that Romania is not an attractive country
    for immigrant workers, so employee retention is a challenge in itself, the
    survey authors also pointed out. The Confidex survey aims to provide a clear
    image of the perceptions of business people in Romania, with more than 2,500
    entrepreneurs and company executives taking part in the 8 editions of the poll
    so far.


    The
    biggest problem facing construction companies in Romania at present has to do
    with the workforce, an IBC Focus report reads. Over 75% of the constructions
    entrepreneurs say they still struggle with labour shortages, and only 11% of
    the respondents say they have enough employees and well trained people in their
    teams. Nearly 58% of the participants in the poll said they were interested in increasing
    their personnel numbers in the coming year. Also, one in 3 constructions
    companies in Romania currently uses foreign workers, as opposed to 1 in 4
    companies last year. The authors of the poll argue that the number of companies
    adjusting to the labour market and defining procedures for employing foreign
    workers is growing, and some 20% of the construction companies in Romania are
    looking at the option of hiring foreign nationals.



    Another survey, conducted by Deloitte, indicates
    that 41% of the companies operating in Romania which say they cannot find
    enough staff are facing a shortage of skills required for the current business
    systems, which is why companies increasingly resort to so-called workforce
    eco-systems, which involve the identification and management of new types of
    human resources, such as consultants, freelancers, contractors or outsourcing, in
    addition to traditional workforce consisting of full time or part time
    employees. The Deloitte report also indicates that, for companies in Romania,
    the benefits of a workforce eco-system comprising several different types of
    human resources and managed through customized strategies and processes include
    improved financial performance for 41% of the respondents and better personnel
    retention for 29% of the respondents. Taking part in the latest edition of the Global
    Human Capital Trends report, conducted by Deloitte on a yearly basis, were
    around 10,000 respondents from 105 countries, including Romania.




    More than 4,000 foreign nationals were found
    staying in Romania illegally in the first 9 months of this year, the General
    Immigration Inspectorate announced. In January – September, the police
    conducted nearly 13,000 checks and inspections aimed at preventing and fighting
    the illegal stay and unregistered employment of foreign nationals in Romania. Local
    employment inspectorate employees also took part in these actions. Some 9,000
    fines were issued for the violation of the legal and employment status of
    foreigners, and around 3,200 people were issued return decisions. Another 1,000
    were escorted out of the country, and 960 others were taken into custody until
    their repatriation. (AMP)

  • Romania in need of physicians

    Romania in need of physicians

    The life expectancy rate in Romania is among the lowest in Europe, and the COVID-19 pandemic has erased part of the growth recorded since 2000. According to a European Commission report on health in Romania, carried out last year, the pandemic highlighted the importance of strengthening primary medical care, preventive health and public health services in a system that depends, to a large extent, on hospital services. The health minister Alexandru Rafila has recently acknowledged that over 15,000 physicians have left Romania in recent years alone for better salaries in other countries. Thus, Romania is facing a crisis of specialists in anesthesia, intensive care, epidemiology, pediatrics, laboratory medicine and microbiology. And, unlike other European states, Romania has one doctor per about 200 inhabitants, far below the European average, due to faulty public health policies.



    The situation is much worse in rural areas, where a doctor sees eight times more patients. Moreover, a recent analysis shows that family medicine in Romania could face big problems in the not too distant future. The massive aging phenomenon observed in this category of doctors could have major consequences in the next ten years, the experts in the field warn. And the health minister admitted that, at present, there is a national crisis of doctors for certain specialties, including those of emergency medicine and family medicine. As far as primary medical care is concerned, the medical corps is aging, and hundreds of localities do not have a doctor.



    Here is the health minister Alexandru Rafila: “This is a national phenomenon. There are specialists that work in critical units such as emergency rooms, ambulance services, and primary medical assistance. Despite the apparently large number of family doctors, namely 11,000, hundreds of localities in Romania do not benefit from primary medical care, and the medical staff is aging, with an average age of over 55 years.”



    According to the health minister, the shortage of medical personnel with higher education studies cannot be covered in the short term, but the problem could be solved in the future by implementing a human resources strategy in health, that should be developed for the first time in Romania. The strategy would be a partnership with the universities of medicine and pharmacy. Meanwhile, in Romania, the number of Covid-19 cases and implicitly the number of patients in hospitals have started to rise again. The authorities announce that they are working on the necessary legislation for opening COVID vaccination centers within the health facilities. This is a preparation measure for the autumn vaccination campaign, when a new vaccine is expected, adapted to the new variants of the Omicron strain. (LS)

  • David Popovici, Romania’s new hero

    David Popovici, Romania’s new hero

    Red carpet, officials and fans, lots of flowers, smiles, hugs and speeches – that was the atmosphere on Sunday night, when the Romanian delegation returned from the World Aquatics Championships in Budapest. The man who stole the show was the 17-year-old David Popovici, who made history in Budapest. At his first debut in suchlike events he was the first in the past 49 years to have become world champion in the 100 and 200-meter freestyle races. In Budapest, Popovici has also set two new world records for junior competitions. His team mate, Robert Glinta, has occupied the fifth position in the 50-meter backstroke race coming eighth in the 100-meter backstroke event. The double world champion has thanked all the fans for supporting him and confessed that he wants his performance to inspire many people to take up sports.



    David Popovici: “I would like to thank all those who believed in me, who have been supporting me and would also like to thank all the Romanians who were thrilled to watch my race on telly, to all those who came in person to watch me. It was superb in Budapest and I know that many would like to be in my place knowing they have the support of so many people. I am sincerely honored to represent this beautiful country and feel you are by my side.”


    David Popovici received 200,000 Euros worth of prize from the Romanian government, while president Klaus Iohannis decided to award the double world champion with the highest national order, Romanian Star in rank of knight and coach Adrian Radulescu with the national order of Merit in rank of knight.



    David is the model and hes going to motivate the entire country. We have the duty to build swimming pools, encourage this sport so that we may have many champions,” Sports Minister Eduard Novak has said. “The Romanian sport is in need of many things and the World Championships in Budapest should stimulate the government to invest in infrastructure” – says Camelia Potec, president of the Federation of Swimming and Modern Pentathlon.



    The opinion is shared by many who have repeatedly pointed to the shortage of funds in several sporting disciplines which led to weaker and weaker results in international competitions, where athletes from Romania used to be a force to be reckoned with. Even the world champion David Popovici himself said quote: ʺHopefully, the wave I have created will help the Romanian sport to make headway, because it clearly can do with a little bit of resuscitation.” This is a busy period for David who will next participate in the European Junior Championships in Romania, due over July 5 and 10, the European Championships in Italy and the World Junior Championships in Peru.


    (bill)

  • March 13, 2022

    March 13, 2022

    VISIT The Romanian foreign
    minister Bogdan Aurescu is having talks in Bucharest today with his Israeli counterpart
    Yair Lapid, focusing on the management of the effects of the Russian military
    aggression in Russia. According to a news release issued by the foreign
    ministry, Mr. Yair Lapid’s visit to Romania takes place at the invitation of
    the Romanian minister, prompted by the deepening crisis in Ukraine and in the
    context of the excellent cooperation with the Romanian authorities in the
    evacuation of Israeli citizens from Ukraine. Israel is one of Romania’s main
    partners in the Middle East, and strategic bilateral relations have developed
    steadily over the past few years. According to the foreign ministry, talks will
    also touch on the development of bilateral relations between the 2 countries,
    with a focus on the political, economic and security areas. The 2 officials
    will also assess preparations for the 3rd Romania-Israel joint government
    meeting (G2G) scheduled to take place this year. During his visit to Romania,
    the Israeli foreign minister will also have talks with PM Nicolae Ciucǎ.


    UKRAINE The Romanian transport ministry launched an app for the Ukrainian
    refugees. The app includes information in Ukrainian, English and Romanian on
    the green transport corridors in Romania, covering areas like the road, railway
    and air network, customs offices, train stations, petrol stations and airports. Ukrainian
    refugees may travel free of charge in Romania, based on a government resolution
    in this respect. Moreover, the emergency number 112 and the special children
    emergency number, 119, are available for calls in Ukrainian as well. Additional
    measures were taken in border checkpoints to prevent human trafficking. As of
    Friday, another online platform has also been available, centralising
    assistance offers for displaced Ukrainians. On Saturday, several cities in
    Romania saw various solidarity actions with Ukraine. In Bucharest, the National
    Arena hosted a charity concert for refugees, with over 35 Romanian and foreign
    artists taking part, which raised some EUR 800,000. Solidarity events were also
    organised in Constanţa, Iaşi, Cluj-Napoca, Piatra Neamţ and Roman. Around 400,000
    Ukrainian nationals have entered Romania since the start of the Russian
    invasion. Many of them have already left for western Europe.


    FOODSTUFF The agriculture minister Adrian Chesnoiu has a meeting today with
    representatives of retail chains and Romanian sunflower oil producers, to
    assess stocks and reserves. The meeting comes amid substantial amounts of
    sunflower oil were purchased in recent days for fear that shops would run out
    of this product. Speculations on the topic are fuelled by the fact that
    war-affected Ukraine is the world’s biggest sunflower seed exporter. Romanian
    authorities promised that Romania has sufficient foodstuff stocks, including
    sunflower oil. They also recommend that people refrain from buying more than
    they need, so that everybody may have access to basic food stuffs. Just days
    before, for fear of skyrocketing fuel prices, unprecedented queuing was
    reported in petrol stations. The previous weekend, foreign currency was heavily
    purchased in Romania, amid rumours that the national currency would plummet. Romanian
    authorities warned once again that such fake news is designed to create panic
    among people.


    CENSUS Beginning on March 14, for 4 months, data will be collected for a
    population and household census in Romania. The operation is conducted every 10
    years and is necessary for the production of official national and European
    statistics. The census was originally scheduled to take place last year, but
    was postponed over the COVID-19 pandemic. This year brings a novelty, in that
    self-census options are available. Self-census is done online, based on a
    simple procedure, according to the authorities. Citizens are to fill in an
    online pre-registration form at www.recensamantromania.ro, followed by the
    questionnaires for each member of the household. Those who do not want or
    cannot fill in those forms will be assisted by census operators in door-to-door
    visits. (A.M.P.)

  • October 22, 2021 UPDATE

    October 22, 2021 UPDATE

    COVID-19 The interim cabinet Friday introduced new restrictions in Romania, as
    the country is struggling with an unprecedented epidemiological crisis. The
    measures will take effect on Monday, 25th October, and will be valid
    for 30 days. Face covering will be compulsory in all indoor and outdoor public
    areas. Access to all central and local public institutions and to the offices
    of private businesses will be conditional on the digital COVID certificate. A
    ban on outdoor concerts and shows, as well as on private events, including
    weddings, conferences and workshops, will also be in place. Shops will only be
    open between 5 am and 9 pm, restaurants will be open until 9 pm but will only
    admit COVID certificate holders. A night curfew will also be introduced,
    between 10 pm and 5 am, for the unvaccinated. Also on Monday, public
    and private kindergartens, primary, secondary schools and high schools will
    take a 2-week break. On Friday the Strategic Communication Group reported 15,410
    new SARS-CoV-2 cases and 357 COVID-related deaths. 1,848 patients are in intensive care.
    Over 128,000 people got vaccinated in the last 24 hours.


    AID Romania is receiving aid from several European countries, including
    Italy, Switzerland, Austria, Germany, Hungary and Poland, as well as from the
    World Health Organisation. The aid consists in medicines, equipment, tests, and
    the transfer of some COVID patients, the head of the Department for Emergency
    Situations Raed Arafat announced on Friday.Five Romanian COVID patients, in a critical condition, were taken on
    Friday to Austria and Poland, by 2 military aircraft. Other patients have been
    transferred to Hungary.


    GOVERNMENT In Romania, the interim
    defence minister Nicolae Ciucă, designated by president Klaus Iohannis to form a
    new government, initiated negotiations over parliamentary support. A first
    meeting was held on Friday, with the head of the Democratic Union of Ethnic
    Hungarians in Romania, Kelemen Hunor. The latter said his party would stay in
    power together with the National Liberal Party, and mentioned that in the
    coming days the governing programme and distribution of cabinet seats would be
    discussed. Save Romania Union is waiting for an invitation to talks, and will try to persuade the Liberals to go for a
    coalition government with majority support in parliament. PSD says it will talk
    with Nicolae Ciuca about a parliamentary majority to support the minority
    government, and AUR has stated it will not support such a government. The Prime
    Minister Designate has called on all political actors to support the new cabinet,
    so that Romania can quickly overcome the medical and economic crisis it is
    going through.


    AUTOMOTIVE Registrations of new hybrid vehicles in the EU accounted for nearly
    21% of the Union’s automotive market in the 3rd quarter of the year,
    outperforming Diesel vehicle registrations for the first time. According to the
    European Automobile Manufacturers’ Association, in July-September sales
    of petrol-based cars dropped by 35%, while registrations of new diesel cars
    more than halved across the EU region. Alternatively-powered vehicles saw a 69%
    increase in sales in Central Europe in the same period. In Romania, sales rose
    by over 153% compared to 2020.



    MOLDOVA The Parliament of the Republic of Moldova Friday
    declared a 30-day state of emergency in the country over a natural gas
    shortage. The government requested the measure in order to be able to procure
    natural gas from alternative sources, given that the Russian supplier Gazprom is
    no longer providing sufficient quantities to meet the demand, Radio Chişinău
    announced. According to the resolution, until 20th November, a
    special procedure will be in place, to speed up the procurement of natural gas.
    If necessary, energy consumption will be rationalised, and instruments to
    quickly collect payments from consumers will be introduced. According to Radio
    Chişinău, negotiations with the Russian energy giant carry on, but in the
    meantime the government is discussing with other states as well, including
    Ukraine, Romania, and Poland, to purchase natural gas from alternative sources.
    Natural gas prices has risen steeply in recent months in international markets,
    and some officials accuse Russia of energy blackmail.

    EUROPEAN
    COUNCIL The European Council president Charles Michel and the head
    of the European Commission Ursula von der Leyen, announced on Friday at the end
    of a meeting in Brussels, that the energy topic will be once again on the
    agenda of the December meeting of the European Council. In the meantime, the
    Commission will conduct an analysis of the EU electricity and natural gas
    market and on the carbon transaction market, after several member states blamed
    the recent energy price rises on problems in these areas. An emergency meeting of
    EU energy ministers was also scheduled for next week. Romania was represented
    by president Klaus Iohannis, who emphasised ahead of the meeting the
    need to quickly identify
    efficient short-term solutions, as the current energy crisis will have serious
    effects in all EU countries, with a profound socio-economic impact.

    (tr. A.M. Popescu)

  • October 19, 2021

    October 19, 2021

    COVID-19 Romanian authorities announced on Monday over 10,000 new SARS-CoV-2 infections and 261 COVID-related deaths in 24 hours. More than 1,700 patients are
    currently in intensive care. As regards vaccination, in Romania, the number of
    people that went through a full vaccination plan stands at roughly 5.7 million.
    The Romanian interim Interior Minister, Lucian Bode, has announced that 26
    patients infected with SARS-CoV-2 have been transferred to Hungary and that the
    situation these days is rather critical. Meanwhile, 32 medical staff from the
    neighbouring Republic of Moldova came to Romania on Monday and will treat
    COVID-19 patients for 12 days, in a mobile hospital in the village of Leţcani,
    Iaşi County. Romania now has new vaccination targets, after missing the
    previous ones because of citizens’ reluctance to the jab.


    AID Poland and Slovenia announced they are ready to help
    Romania fight the on-going healthcare crisis. The offers came after president
    Klaus Iohannis presented the situation in a videoconference ahead of a European
    Council meeting due in Brussels on Thursday and Friday. Attending the
    conference were the prime ministers of the 2 countries, who voiced their
    willingness to help Romania, as well as the president of the European Council,
    Charles Michel, ho undertook to facilitate EU-level aid. Hit hard by the 4th
    wave of the pandemic, Romania has already received medical equipment from Poland,
    Italy and Denmark.


    GOVERNMENT The relevant parliamentary committees are interviewing
    today the proposed members of PM designate Dacian Cioloş’s cabinet. Deputies
    and Senators will discuss with both former ministers in the coalition
    government comprising the National Liberal Party, Save Romania Union and the
    Democratic Union of Ethnic Hungarians, headed by the Liberal Florin Cîţu.
    Stelian Ion is once again nominated for justice minister, Ioana Mihăilă for
    health minister and Cătălin Drulă for transport minister, while former deputy
    PM Dan Barna is the proposed foreign minister. New names in the cabinet include
    environment activist Mihai Goţiu for environment minister, the former prefect
    of Bucharest Alin Stoica for interior minister and former fighter pilot Nicu
    Fălcoi for defence minister. The decision of Save Romania Union (USR) to
    present Parliament with a proposed one-party government was made after
    negotiations with the former partners failed to lead to the restoration of the
    right-wing coalition. The Liberals and
    ethnic Hungarian party would not resume cooperation with USR, because the
    latter backed a motion of no-confidence against the Cîţu government. The Social
    Democrats in opposition are also against a government headed by Cioloş, whom
    they accuse of irresponsibly protracting this political crisis. The Social
    Democrats and the nationalist party AUR demand early elections. Cioloş’s team
    needs 234 votes in Parliament, and USR only has 80 MPs. The vote on the
    proposed government is scheduled for Wednesday.


    AUTOMOTIVE The Ford production unit in Craiova (south-western Romania) is
    temporarily downsizing operations because of a semiconductor shortage. Until
    Thursday the plant will operate in one shift instead of three, both in the
    vehicle and the engine production divisions. The vehicles for which sale
    contracts have already been signed will be a priority, the management announced.
    Employees will be paid idle time up to 78% of their base salaries. In turn, the
    Dacia plant in Mioveni, Argeș County, controlled by the French group Renault, suspended
    its operations for lack of electronic components on October 8, sending home
    around 90% of its 14,000 employees at the time.


    OPINION POLL The Army and the Church rank first in terms of public
    confidence in Romania, according to an opinion poll conducted by the Information
    Warfare analysis and Strategic Communication Laboratory. Specifically, some 87%
    of the Romanians say they trust the Army, 70% the Church, 67% – the Romanian Intelligence
    Service and the Romanian Academy. Confidence is politicians is low, at some 20%,
    with the President, Parliament and Government on the top 3 positions. The main
    threats against Romania, according to over 40% of the respondents, are the
    politicians’ corruption and incompetence. The main threats facing the EU are an
    economic crisis, the COVID-19 pandemic and disagreements between some member
    states. the poll was conducted by telephone between October 1 and 10, with a de
    +/- 3.1% margin of error.



    MOLDOVA The leader of the Socialists Party in the neighbouring Republic of
    Moldova, the pro-Russian ex-president Igor Dodon, announced he stepped down as
    a Parliament member and party president. He said he will continue to work as
    part of the Moldovan-Russian Entrepreneur Union, to strengthen economic
    relations with Russia. Dodon explains his role as an opposition leader will be
    better served from outside Parliament. One year ago he lost the presidential
    election to pro-European Maia Sandu, whose party, Action and Solidarity, defeated
    the Socialists and their allies, the Communists, in July’s early parliamentary
    election. (tr. A.M. Popescu)

  • February 19, 2021 UPDATE

    February 19, 2021 UPDATE

    COVID-19 Romania reported 2,712 new SARS-CoV-2 cases in the last 24 hours, and 79 COVID-19 related deaths. Nearly 950 patients are in intensive care. The immunisation programme continues, at a rate of 40,000 vaccine doses daily. According to the National Vaccination Coordination Committee, the total number of doses used stands at roughly 1.3 million, with over 750,000 people immunised since the start of the campaign on 27th December.



    AID The Republic of Moldova Friday received humanitarian aid from Romania, consisting in medical equipment and personal protection equipment to help fight the COVID-19 pandemic. According to the Moldovan Presidency, the donation is worth around 2.3 million euro. The official reception ceremony was attended by Moldovas president Maia Sandu, interim PM Aureliu Ciocoi, the Romanian foreign minister Bogdan Aurescu and other officials. The EU Ambassador to the Republic of Moldova, Peter Michalko, emphasised that Bucharests help is vital.



    BUDGET The Supreme Defence Council convening in Bucharest today in a meeting chaired by president Klaus Iohannis approved the draft 2021 budgets for national security institutions. In order to pass the state budget, the government needed a decision from the Supreme Defence Council with respect to the budget of relevant institutions. Also on Friday the Cabinet held a meeting to approve the state budget and social security budget bills for this year. On Thursday the cabinet had passed an emergency order scrapping a planned pension increase and the holiday vouchers for this year, and granting students a 50% public transport subsidy instead of 100% as it was before. The Liberal PM Florin Cîţu said the budget deficit target remains 7.16%, and that special attention will be paid to investments.



    HEATING Mintia thermal power plant, part of the Hunedoara Power Compound in western Romania, was shut down over a coal shortage, which means that around 4,500 flats in Deva as well as public institutions in that town no longer receive heating. This comes amid protests at the coal mines in the Jiu Valley area, where workers are unhappy with delays in salary payments. It is for the 4th time in 6 months that the thermal power plant is not operational for lack of fuel. The energy minister Virgil Popescu said there are short-term solutions for the problems in Hunedoara, but that a long-term plan is also necessary.



    SENTENCE The businessman Ioan Niculae Friday returned from Italy to Romania and turned himself in, after receiving a final 5-year prison sentence from the Bucharest Court of Appeals, for influence peddling and inciting money laundering and tax evasion. According to prosecutors, in 2008 and 2009, his company declared fictitious financial operations to dodge taxes. The state incurred losses of over 2.2 million euro. Niculae already served another prison sentence in a corruption-related case in 2015.



    SKI The Japanese athlete Ryoyu Kobayashi Friday won the Ski Jumping World Cup leg held in Râşnov (central Romania), after the Norwegian Halvor Egner Granerud, the original winner, was disqualified. Kobayashi won his second competition this season and the 18th in his career, with jumps of 94 m and 98.5 m. Next came Kamil Stoch, of Poland, winner of this years Four Hills Tournament, followed by Karl Geiger (Germany). Granerud tops the overall World Cup standings after 22 legs. Another Japanese athlete, Sara Takanashi, won the womens competition in Râşnov, also held on Friday. A mixed team event is scheduled on Saturday. (tr. A.M. Popescu)

  • The healthcare system battling the novel coronavirus

    The healthcare system battling the novel coronavirus

    That the Romanian healthcare system is sub-standard has long been an understatement. The chronic under-financing of the past decades is particularly evident now, when the country is hit by the global crisis caused by the novel coronavirus.



    The hospitals are too few to cover the needs of the patients—both those suffering from Covid-19, and from other conditions; the equipment is, more often than not, inadequate, and many doctors and nurses have left the country over the years, to look for decent working conditions abroad.



    And while bigger cities, and university centres in particular, fare better in terms of the quality of medical care, in small and medium-sized towns the situation is bordering on the disastrous.



    In this context, trade unions in public healthcare are disgruntled with the overwork and underpayment of the personnel involved in treating Covid-19 patients. On Tuesday, PM Ludovic Orban offered guarantees that all the employees in the system will receive sufficient and appropriate equipment. He also promised to consider the option of reducing working hours for the personnel in intensive care wards, who complain of working too long shifts. The PM also believes posting staff could be a solution to the shortage of intensive care personnel.



    Ludovic Orban: “Weve asked for volunteers, but the answer we have received is not what we expected, so we are going to resort to posting, which is a lawful instrument. For certain categories of personnel, such as anaesthesiologists in intensive care units, the 50% bonus they receive for posting should be in addition to the bonus paid to all intensive care staff, and if necessary, we will make this clear in an executive order.



    The salaries of Public Healthcare Directorate doctors will be raised, because these people are at the frontline of the epidemiological triage of Covid-19 patients. The personnel of these directorates and of public ambulance services will be increased. And, according to trade union leader Iulian Pope, technical and support staff will not be overlooked:



    Iulian Pope: “This includes administrative staff, nurses, hospital porters and the like, who are still covered by a gradual implementation of the unified salary scheme. We would like these staff categories to receive as early as this year the salary levels originally scheduled for 2022.



    In the meantime, until all these problems are solved and the Romanian healthcare system reaches European quality standards, Romanians would be well advised, as an old saying goes, to keep in mind that prevention is better than cure.


    (translated by: Ana-Maria Popescu)

  • Labour shortage in Romania

    Labour shortage in Romania

    Although the exact figures do not always concur, all the demographic surveys of the past decade point to the same conclusion: Romanias population is dwindling and ageing. The most recent such survey, commissioned by the Concordia Employers Association, and made public on Tuesday, is no exception. According to its findings, if the demographic decline and migration trends carry on at the same pace, Romanias population will drop to 18 million by 2030. By 2060, the pension system dependency ratio, which is the number of pensioners relative to contributors, will be close to 100%.



    Entitled “A Quantitative and Qualitative Analysis of the Romanian Labour Market, the survey estimates that the number of employees will drop from 8.4 million in 2016 to 7.3 million in 2030. The authors also say that, in terms of the job supply, geographic polarisation will deepen and the most economically dynamic regions, namely Bucharest-Ilfov in the south, the west and the north-west of the country, will also report the highest labour deficits. At national level, this deficit already amounts to some 300,000 people this year, and it may go well over half a million by 2023.



    The authors have also identified important population segments, around 2 million people, which are included neither in the labour market, nor in the education and vocational training system. “What we find, in other words, is untapped human potential. This phenomenon requires in-depth analysis, to enable us to understand the causes of this situation and subsequently to outline measures able to help them enter the labour market, reads the report.



    Some proposed solutions for the labour crisis mentioned in the study include closer cooperation between the education system and the labour market, aimed at modernising vocational and technical training, and implementing a strategy and an action plan to end the demographic decline.



    Commentators are rather sceptical that these trends can be reversed in the short and medium run. The population decline started 3 decades ago, shortly after the fall of the communist regime, when abortion was decriminalised. And migration, which picked up speed after Romanias EU accession in 2007, will continue as long as the national labour market remains hardly rewarding. Bogdan Hossu, the leader of one of the countrys most important trade union association, Cartel Alfa, says that Romania ranks first in the European Union by share of employees below the poverty threshold, namely 20%.



    (translated by: Ana-Maria Popescu)

  • Migration and the labour market

    Migration and the labour market

    The EUs successive waves of eastward enlargement have also opened the community labour market for citizens of Central and East European countries. In 2004, as many as eight former communist countries joined the Union. Romania and Bulgaria followed suit in 2007, with Croatia being the last to join the community bloc in 2013. In search of safer and better-paid jobs, millions of Poles, Romanians, Hungarians and Bulgarians are working and paying taxes throughout the continent, from Sweden to Portugal and from Austria to Ireland.



    Their migration was a relief for their home countries, which no longer had to pay unemployment benefits to the numerous victims of the economic transition from a largely bankrupt centralised economy to capitalism, with its sometimes wild and unscrupulous facets. As a result, at present the labour market in Central and Eastern Europe continues to improve, with unemployment rates plummeting to the lowest level ever, although still above the EU average, a survey made by the well known consultancy firm Coface shows.



    Macroeconomic data show that over the past few years salaries have increased and inflation dropped, making household-generated consumption the main driver of economic growth. For instance, as of 2010, gross salaries have increased by over 30% in Romania and Bulgaria and by over 20% in Hungary and Poland, respectively, the survey reveals.



    Coface also notes that, in exchange, companies have been facing more difficult times, with increasingly demanding employees cautiously negotiating the level of salaries, and thus forcing them to accept higher labour costs. The low birth rate and the migration to Western Europe have also contributed to a workforce deficit, raising a barrier to business expansion. Even the companies that pay higher salaries are facing employment difficulties. Pay rises are currently exceeding work productivity gains, but regional labour costs are still three times lower on average than in the West.



    This disparity, which is a trump card for Central and Eastern Europe in terms of unit labour costs (the average cost of labour per unit of output produced) alongside the geographical and cultural proximity to the West, should bring significant competitive advantages to the region. However, these benefits might get compromised on medium term, if the migration of skilled young people continues, Coface warns in its survey. The labour force deficit might be reduced by encouraging migrants to return to their countries of origin, but this is rather unlikely. Thats why Coface recommends to the governments in the region to encourage the labour inclusion of ethnic communities, women and elderly people and to boost professional training.


    (Translated by: Diana Vijeu)