Working in Romania
The latest from Romania's labor market
Sorin Iordan, 03.04.2025, 13:40
Last year Romania, Bulgaria and Hungary recorded the lowest labor costs per hour. Hourly labor costs in the European Union ranged between 10 and 55 euros in 2024, with the EU average being 33.5 Euros. The lowest costs were recorded in Bulgaria – 10.6 Euros, and the highest in Luxembourg – 55.2 Euros. Romania ranks second in the ranking of the lowest costs with 12.5 Euros per hour, followed by Hungary with 14 Euros. In industry, the European average hourly cost was almost 34 Euros, in construction 30 Euros, and in services 33.4 Euros. In the non-commercial economy, excluding public administration, this cost was a little over 34 Euros. The cost of labor per hour is made up of the cost of wages and non-wage costs. Romania has among the lowest shares of non-wage costs, almost 5 percent, while in France or Sweden, they represented over 30%. Compared to 2023, the price of an hour of work increased on average by 5% in 2024. The largest increases were in Romania and Croatia, an increase of 14.2 percent for both countries, then in Bulgaria an increase of almost 14% and in Hungary of 13.3%.
The employment data of employees in Romania will be managed through a new online system, which will replace the current one, which is technically outdated. According to a government decision, the Labor Ministry will establish the procedure for accessing the new platform, which will simplify employees’ and employers’ access to information on employment relationships. The spokesperson for the Romanian government, Mihai Constantin, said that Reges Online will completely replace the application known to employees and employers as Revisal, which is outdated in relation to the volume of information on employment relationships, their complexity and the evolution of technology. By implementing the new platform, Constantin specified, bureaucracy will be reduced and data on employment relationships will be updated more quickly. The new system will bring many benefits for employees, who, over time, will be able to verify their contribution related to work, and also for employers who will no longer have to buy licenses. To facilitate adaptation to the new system, employers have six months to make the transition from Revisal to Reges Online.
Romania is facing an unprecedented labor crisis in the vehicle repair sector, and the risk is that this industry may stall, the Car Service Operators’ Employers’ Association reported. According to data published by the organization, over 40% of the car service centers have major problems recruiting qualified workers, and for this reason many are forced to refuse customers or extend their delivery deadlines. To avoid a total blockage, the Car Service Operators’ Employers’ Association is asking the authorities to take urgent measures, such as reducing labor taxation for employees in the field, simplifying the recruitment process for foreign workers, reforming technical education and providing tax advantages for service centers that invest in training young people.
240 employees of a garment factory in Odorheiu Secuiesc, in Harghita County in central Romania, will be laid off by June. Company representatives said the reason is the increase in expenses, along with the increase in the minimum wage as well as the lack of orders. The situation is increasingly common in other companies that work on a toll manufacturing system, said Janosi Edith, head of service at the County Employment Agency. She pointed out that foreign companies, such as the one that announced the layoffs, operate where labor is as cheap as possible and where they do not have to pay for the added value of creativity. However, the changes on the Romanian labor market make them leave Romania, said Janosi Edith. Currently, the unemployment rate in Harghita is 5.5%. There are 6,700 unemployed people in the county, for whom 200 jobs are available, mostly in the fields of wood processing, construction and textiles. Harghita had the second lowest average salary in the country last year, after Teleorman, 4,100 lei (820 Euros) – approximately 1,500 lei (300 Euros) lower than the national average. (LS)
