{"id":142833,"date":"2018-09-12T12:08:00","date_gmt":"2018-09-12T09:08:00","guid":{"rendered":"http:\/\/devrri.freshlemon.ro\/news-and-current-affairs\/newsflash\/romanias-workforce-crisis-and-foreign-workers-142833.html"},"modified":"2024-02-19T16:42:14","modified_gmt":"2024-02-19T14:42:14","slug":"romanias-workforce-crisis-and-foreign-workers","status":"publish","type":"post","link":"https:\/\/www.rri.ro\/en\/features-and-reports\/society-today\/romanias-workforce-crisis-and-foreign-workers-id142833.html","title":{"rendered":"Romania\u2019s workforce crisis and foreign workers"},"content":{"rendered":"<p><p>Given its&#13;<br \/>\npopulation decline and the emigration of so many of its people since 1990, it&#13;<br \/>\nwas to be expected that Romania would face a workforce deficit at some point.&#13;<br \/>\nThe situation has gotten worse from one year to the next, so that Romania has had&#13;<br \/>\nno choice other than to import staff to occupy the vacancies. At the moment,&#13;<br \/>\nRomania has the second highest demand in the European Union for workers from&#13;<br \/>\noutside the European Union, after the Czech Republic. Most of the foreign&#13;<br \/>\nworkers employed in Romania in 2018 come from Vietnam, namely 35%, followed by&#13;<br \/>\nTurkey, Nepal, Serbia, Sri Lanka, China and the Republic of Moldova. <\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>The workforce crisis&#13;<br \/>\nis being felt in particularly in such fields as the restaurant industry, the&#13;<br \/>\nconstruction of ships and floating structures, the clothing and footwear retail&#13;<br \/>\ntrade, as well as in the residential and non-residential building industry. Accidentally&#13;<br \/>\nor not, these are partly also the areas employing the Romanians who have now settled&#13;<br \/>\nin EU and non-EU countries for a number of years. That is one possible&#13;<br \/>\nexplanation for Romania&#8217;s workforce deficit, whose causes are also to be found&#13;<br \/>\nin the situation of the country&#8217;s education system, says the S&#038;D Euro MP and&#13;<br \/>\nbusinesswoman Maria Grapini:<\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>It must be said&#13;<br \/>\nthat the workforce crisis affects execution position, not positions that&#13;<br \/>\nrequire higher education. Unfortunately, we now see the results of closing&#13;<br \/>\nvocational schools a few years ago, although the dual education system has started&#13;<br \/>\nto function in the meantime. The law on in-work apprenticeship has also been&#13;<br \/>\npassed. But the demand for more workers is not yet met. My firms are active in&#13;<br \/>\nthe textile industry, which is confronted with a serious crisis when it comes&#13;<br \/>\nto skills that used to be acquired in vocational schools, such as weaving and&#13;<br \/>\ndyeing. Not to mention of occupations such as that of electrician, welder,&#13;<br \/>\nlathe operator, etc.<\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>We are mainly importing&#13;<br \/>\nunskilled work, confirm the representatives of consultancy and human resources&#13;<br \/>\nfirms, such as Dana Ionescu, a global mobility manager with ADECCO, who says&#13;<br \/>\nthat importing foreign workers is not cheap: <\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>It is in no way&#13;<br \/>\ncheaper to import foreign citizens instead of hiring citizens from Romania. There&#13;<br \/>\nare some salary-related restrictions for certain types of workers. While a&#13;<br \/>\nRomanian citizen can be hired for the minimum wage, a foreign citizen for whom&#13;<br \/>\na work permit is obtained must be offered the average wage. To this we add the&#13;<br \/>\ncost of the paperwork: the fee of the consultancy firm, the translation of&#13;<br \/>\ndocuments, notary fees as well as other taxes.<\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>Irrespective of&#13;<br \/>\nthe causes of the workforce crisis and its costs, Romanian employers need a growing&#13;<br \/>\nnumber of foreign workers and have called on the government to issue more work&#13;<br \/>\npermits. The human resources expert Dana Ionescu will give us more details: <\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>Data centralised by the National Employment Agency&#13;<br \/>\nshow that out of the total number of vacancies reported in the first semester&#13;<br \/>\nof 2018 and made available to the people who are looking for a job and who are&#13;<br \/>\nregistered as beneficiaries of unemployment benefit, 31,464 jobs were repeatedly&#13;<br \/>\nreported as vacant by employers. Due to this deficit, there emerged the need to&#13;<br \/>\nincrease considerably, from one year to the next, the number of foreign workers&#13;<br \/>\nthat can be hired on Romania&#8217;s territory. This number is approved by a&#13;<br \/>\ngovernment order at the beginning of each year, and it is later modified during&#13;<br \/>\nthe year.<\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>This year, the number approved by the government&#13;<br \/>\naccording to types of workers newly admitted on the labour market has increased&#13;<br \/>\nby 55% as compared to the same period of 2017. Initially, the numbers for 2018&#13;<br \/>\nincluded 7,000 workers and, in August, the authorities decided to increase it&#13;<br \/>\nto a record number, according to Dana Ionescu:<\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>For the permanent workers category the amount doubled&#13;<br \/>\nfrom 4,000 to 8,000, while the number of posted workers has grown more than&#13;<br \/>\nfour times. It remains to be seen if another increase will be needed by the end&#13;<br \/>\nof the year.<\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>Besides measures such as correlating training with the&#13;<br \/>\nmarket needs and applying the in-work apprenticeship law, the idea of&#13;<br \/>\nencouraging Romanians to return home has also been discussed. But, in this&#13;<br \/>\ncase, there emerge other obstacles, according to Euro MP Maria Grapini:<\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>People have lost confidence. When I visited Spain, I&#13;<br \/>\nmet the representatives of the Romanian community there. They told me they&#13;<br \/>\ndon&#8217;t trust the sustainability of the labour market. They have not raised the&#13;<br \/>\nissue of wages but the long-term sustainability of jobs. We need public&#13;<br \/>\npolicies focused on this very aspect.<\/p>\n<p><\/p>\n<p>&#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n&#13;<\/p>\n<p>Until then, importing workforce is the solution at&#13;<br \/>\nhand. Talks have been held on simplifying the legislation for bringing in workforce&#13;<br \/>\nfrom abroad. The authorities are also considering the elimination of a&#13;<br \/>\nprovision regarding the average salary, because, once the government has set the&#13;<br \/>\nminimum wage, it should be up to the market to decide the level of wages for&#13;<br \/>\nemployees depending on their training and expertise. It remains to be seen of&#13;<br \/>\nthese ideas will turn into laws. <\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Romania is faced with a workforce deficit, resulting in a demand for foreign workers.<\/p>\n","protected":false},"author":136,"featured_media":142834,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42997],"tags":[31513,116464],"coauthors":[],"class_list":["post-142833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-society-today","tag-foreign-workers","tag-romania-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Romania\u2019s workforce crisis and foreign workers - Radio Romania International<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rri.ro\/en\/features-and-reports\/society-today\/romanias-workforce-crisis-and-foreign-workers-id142833.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Romania\u2019s workforce crisis and foreign workers - 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