Romania reaches lowest unemployment in decades

The unemployment rate was 3.48% at the end of June, steady for the second consecutive month, and the lowest  unemployment rate in the last 26 years.

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Delia Budurca NewsMavens, Romania

Romania reaches lowest unemployment in decades - NewsMavens
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Why this story matters:

Compared with June 2017, the unemployment rate decreased by 0.69 percentage points to 3.48% according to data released by the National Employment Agency (ANOFM).

"The downward trend of the unemployment rate is accentuated during the summer months, and is influenced by the increase in persons employed on a seasonal basis in the sectors of the seasonal economy (construction, agriculture, services, etc.)," ​​ANOFM representatives say.

The trend is a continuation  of the severe labor shortage Romania suffered following the migration that took place after 1990 to the developed countries in the West.

The first initiatives to recruit personnel from outside the country began to appear in Romania 2-3 years ago, according to a Smartree analysis. Companies in Romania that are active in sectors such as HoReCa, manufacturing, light industry, agriculture, construction, services have hired foreign workers from non-EU countries in recent years, and most employees come from countries where the level of living is below Romania's. The imported personnel come from the Philippines, Nepal, Vietnam, India, Indonesia and Thailand.

Details from the story:

  • The total number of unemployed persons at the end of June was 304,361 persons, of which 51,135 were unemployed and 253,226 unpaid. The number of compensated unemployed decreased by 4,343. Also, the number of unmarried unemployed decreased by 4,718 compared to the previous month.
  • Compared to the previous month, the male unemployment rate decreased from the previous month, from 3.65% in May 2018 to 3.62% and the female unemployment rate rose from 3.27% in May 2018 to 3.32%.
  • 87,137 unemployed came from urban areas and 217,224 from rural ones.
  • Most unemployed were between 40 and 49 years of age (89,365), followed by those aged 30-39 years (59,473), over 55 years (59,401), with the opposite being between 25-29 years (18,514).
  • According to unemployment statistics sorted by level of education, the unemployed without education and those with primary education have the highest share in the total number of unemployed registered by ANOFM (35.79%). The unemployed with a high school education represent 32.11% of the total registered unemployed, and those with university studies 4.67%.
  • Recently (mid-July) some legal changes were approved, according to which a person refusing a job loses the right to social assistance. Another change provides that people receiving social assistance must do community work in the amount of money they receive.

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NewsMavens is a media start-up within Gazeta Wyborcza, Poland's largest liberal broadsheet published by Agora S.A. NewsMavens is currently financed by Gazeta Wyborcza and Google DNI Fund.
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