• 4.4

    2019

Key drivers

Talent Mismatch (5.0)

The vacancy rate has steadily risen in Romania. This suggests there is a growing imbalance between the skills job applicants possess and those sought by employers.

Education Flexibility (7.4)

A fall in the number of graduates as a share of the total population in Romania means that the average skill level of workers has declined.

Labour Market Participation (3.9)

Romania is forecast to experience another year of positive growth in the participation rate this year, increasing the size of the available labour pool.

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Education Flexibility

7.4
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Labour Market Participation

3.9
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Labour Market Flexibility

7.3
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Talent Mismatch

5.0
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Overall Wage Pressure

4.9
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Wage Pressure in High-Skill Industries

0.0
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Wage Pressure in High-Skill Occupation

2.6

View from the Ground

Romania, especially in the major cities, has an extremely dynamic labour market. One of the most powerful and growing sectors is the shared service centre and business process outsourcing sector. There is currently a trend in this sector of operational roles becoming more and more complex and therefore the required skillset is growing. Such centres have started migrating more sophisticated jobs to the country and new roles are still being created. Apart from the standard English language proficiency, other languages are also in high demand. The information technology (IT) sector is trying keep up with the increasing demand for skilled professionals, while tax exemptions for IT workers are still in place in order to attract and retain professionals to Romania. The market has become extremely competitive, bringing salaries to sometimes stressful levels. The Government has also introduced a tax exemption for the construction sector to address the skills shortage in this fast-growing sector.

Sándor Bodnár, Managing Director, Hays Romania

Key Skills in Demand

  • Software Developers
  • Cyber Security Engineers
  • Construction Engineers
  • Customer Service Staff with Foreign Language Skills
  • AP/AR/GL Accountants

Market Insight

Strong consumption growth underpinned another good year for the Romanian economy in 2018, with GDP increasing by around 3.6%.

There is little spare capacity in the labour market, with the robust recent economic performance prompting the unemployment rate to fall to 4.2% in 2018, its lowest level since 1988. Some labour shortages have emerged, notably in the construction sector, which are likely to threaten the rate at which business can expand and will put upward pressure on wages.

In January 2019, the Government introduced three separate minimum wages: the overall national minimum wage, another specifically for employees with higher education, and a third specifically for the construction sector. The latter two were introduced to combat shortages in the supply of skilled labour and construction workers, respectively. The national minimum gross monthly wage was increased from RON 1,900 to RON 2,080. It was just RON 1,450 as recently as 2017.