Labour market in Romania remains weak (EC's economic forecasts)

The creation of new jobs will remain reduced in 2012 in Romania due to the difficult economic climate and the situation will improve modestly in the period 2013-2014, indicates the European Commission's (EC) autumn forecasts, released in Brussels.

According to the forecast of the Community Executive, the improvement in the new job creation will not be sufficient to lead to a significant decrease in unemployment, which is expected to remain above 7 percent in 2013-2014. The number of jobs created will increase 0.4 percent in 2012, just as in 2011, and in 2013 and 2014 it will grow 0.8 percent and 0.9 percent, respectively. The annual unemployment rate in 2012 is forecast at 7.4 percent, same as in 2011, while it is expected to fall to 7.3 percent in the next two years, reaching the level of 2010. The lowest unemployment rate in the years evaluated in the report in Romania was in 2008, when it stood at 5.8 percent.

At the same time, it is expected that the public sector pay rises, which will take place for the recovery of past reductions will lead to overcoming the private sector increases both in 2012 and 2013. The salary increases in this sector would be about 4 percent per year, reflecting the modest economic recovery and the recent labor market reforms that allow a better alignment of wage increase with the productivity development, the EC estimates.