Working in Romania
The latest news from the Romanian labour market.
Sorin Iordan, 20.06.2024, 14:50
The government is this week discussing a bill on the adoption by Romania of the European minimum wage. The document is drafted by the labour ministry and transposes a EU directive. Romania’s prime minister Marcel Ciolacu explained that once this bill is passed, salaries in Romania will become closer to the EU average. Ghe EU directive no. 2041 stipulates that the minimum wage in a country must account for at least 50% of the average income. The minimum wage in Romania at the moment is around 660 euros, to go up to around 740 euros from July 1st. The net average income in Romania stood at 1,048 euros in April, up 6.4 euros compared with March, according to the National Institute for Statistics. The highest levels were recorded in the IT sector, with a net average of 2,405 euros, and the lowest in the clothes manufacturing sector, with less than 560 euros. Compared with April last year, the net average salary income went up by 14%.
The unemployment rate dropped in Romania to 5.3% in the first quarter of the year, said the National Institute for Statistics. The occupancy rate was 64.2%, up 1.2% compared to the final quarter of last year. Occupancy rate was higher among men than women and among the urban population versus the rural population. The occupancy rate among young people was 19.9%. Economic analyst Aurelian Dochia says the current context is favorable to the labour market and expects the unemployment rate to remain relatively low. He warns, however, that Romania is deficient in the field of education and professional counseling, which calls for measures to boost young people’s training while in employment.
Many Romanian businesses are faced with a shortage of local labour, mainly as a result of the massive migration of Romanian specialists to states in western Europe. Under the circumstances, employers are hiring many workers from Asia, especially in constructions, the hospitality sector, agriculture, industry and the transport of goods. The president of the Association of Local Investors Cristian Pârvan says these workers are mostly unskilled, owing to low salaries and the structure of the Romanian economy. He said employers are looking for people with higher qualifications among those arriving here for unskilled jobs, thus trying to tap into their potential. According to figures published by the National Institute for Statistics, the number of vacant jobs in Romania was 35,000 in the first three months of the year, up 1,700 compared with the previous quarter, but down by 12,100 compared with the same period last year.
The hourly labour cost grew in Romania by 16.4% in the first quarter of the year compared with the same period last year, according to the European statistical office. Romania in fact tops this ranking, being followed by Bulgaria with 15.8%, Croatia with 15.3%, Poland with 14.1% and Hungary with 13.7%. The hourly labour cost includes salary and non-salary related costs, as well as the social contributions paid by employers.
