Romania’s public sector will shed 326,000 jobs by the 2015 deadline for the enforcement of a new pay law, Finance Minister Gheorghe Pogea said on Tuesday. Currently, there are 1,394 million public sector employees.
The firings are in response to the unitary wage law, under which the minimum wage will rise to RON1,100 (380 euros) a month.
Economic analysts expect that around 50,000 Romanian workers will face redundancy in coming months as the country starts to feel the effects of the global financial crisis and the deepening recession, and as falling demand prompts firms to downsize.
At the moment, the jobless rate in Romania is one of the lowest in the EU. This is due, in part, to the mass emigration of more than two million Romanians to Western Europe.
Prior to the recession, increased foreign investment and a stronger economy had caused labour costs in Romania to rise.