Employment Trends in Romania

The current employment landscape in Romania reflects a complex interplay of growth and contraction, mirroring global trends. Recent reports indicate that while some sectors actively hire, others face significant layoffs, creating a mixed economic environment.

Hiring and Layoffs in Romania

According to a recent study conducted by ASFRU, one of the most prestigious HR associations in Romania, 31% of companies in Romania are hiring, while 28% are planning layoffs in 2025. This trend highlights a significant challenge within the labour market, where specific industries are expanding, yet many are downsizing due to economic pressures and changing demands.

• Growing Industries: The sectors of administrative support, construction, HoReCa (hotels, restaurants, and cafes), and health services have been the most active employers. For instance, the B2B sector saw a 2.8% increase in employment year-on-year, adding approximately 8,600 jobs.
• Declining Sectors: Conversely, the manufacturing sector has experienced a decline of 0.7%, attributed primarily to job cuts in automobile manufacturing as companies like Dacia implement automation strategies.

As of August 2024, Romania’s unemployment rate increased slightly to 5.5%, the highest level since December 2023. This increase indicates broader economic challenges, including rising costs and shifting market demands.

Employment Trends Worldwide

Globally, labour markets are similarly experiencing fluctuations:

• In the United States, job openings have remained robust despite economic uncertainties, with many companies still seeking talent in the technology and healthcare sectors.
• In Europe, countries like Germany and France are grappling with labour shortages in skilled trades while facing economic slowdowns that prompt layoffs in other sectors.

A common theme across many countries is the struggle to retain talent amid budget constraints and a shortage of qualified personnel. In Romania, over half of employers report employee retention as their top concern as they navigate high attrition rates averaging around 18%.

Salary adjustments are becoming increasingly important as companies strive to attract talent. In Romania, 54% of companies plan to increase salaries by up to 10%, which does not meet employee expectations for higher raises.

Significant contrasts characterize the Romanian labour market: while some sectors thrive and expand their workforce, others face layoffs and economic uncertainty. This duality reflects broader global trends where recruitment challenges and economic pressures shape employment landscapes. As companies adapt to these changes, focusing on employee retention and competitive compensation will be crucial for sustaining growth in this dynamic environment.