Economists have identified the reasons why Romania is going through a labor force crisis. The state does not train specialists in current and relevant fields, and people, due to high taxation on salary, are looking for solutions to contribute less to the public budget.
Almost a third of Romanians able to work do not work, according to the European Institute of Statistics.
High taxation, a problem
Romania is in third place in Europe in terms of the share of the population that is of legal age to work, but is not listed as employed. High taxation is a big problem – last year, the state imposed the highest tax compared to 16 countries, including Bulgaria, the Netherlands and Germany.
Last year, the authorities discovered 9,000 Romanians who were working without a contract. Economists estimate, however, that the real figure is heading towards two million. Another problem is unemployment – almost a quarter of young people under the age of 25 do not have a job.
“Extremely strong taxation of the work of the employee on an employment contract, which makes many Romanians use another method of collecting money for work, such as SRLs, PFAs or to work illegally. It is a gray economy, I would say, in the labor market“, said Adrian Codîrlaşu, CFA vice-president, for Antena 1.
We import Asian workers
Even foreign journalists noted that Romania is more open to immigrants who come to work in our country. Practically, this is how the economy solves the labor force crisis. The pressure of employers who complain about the lack of labor has determined this situation.
With its 1,100 beds spread over three buildings, the worker’s dormitory in the Komitat Bucharest Sud neighborhood is a true mix of cultures.
Nepalese, Indians, Bengalis, Sri Lankans… Immigrants from Asia continuously enter and leave the dormitories equipped with video cameras and security, installed in a residential suburb of the Romanian capital.
For a long time completely closed to any form of immigration, Romania, like most countries in central and eastern Europe, has actually opened up to foreigners for several years, under pressure from employers who complain of difficulties in recruiting staff, accentuated by the post- Covid.
