Romania is grappling with a significant labor market issue: the inability to retain foreign workers. Despite hiring 100,000 foreign employees in 2024 to address labor shortages, approximately 65,000 left the country by year’s end. This troubling trend underscores a deeper issue with worker retention and integration into the Romanian workforce.
A Persistent Labor Crisis
Since 2020, Romania has granted access to 350,000 non-EU workers, primarily in sectors like construction, hospitality, and delivery. However, as of the end of 2024, fewer than 150,000 foreign workers remain employed. Recruitment platform representative Ana Călugăru explains that many Asian candidates view Romania as a transit point to Western Europe, where wages and conditions are more attractive. Furthermore, difficulties in integrating into local work environments exacerbate the issue.
Labor Market Gaps
Romania’s labor shortages are compounded by a rising unemployment rate, particularly in regions where rates exceed 9%. According to October 2024 data from the National Institute of Statistics (INS), the country has over 460,000 unemployed individuals, mirroring the population of a mid-sized county. While urban hubs like Bucharest and Ilfov boast unemployment rates below 1%, rural areas and counties such as Vaslui and Teleorman struggle with significantly higher rates.
The Role of Artificial Intelligence and Future Job Trends
As artificial intelligence (AI) and automation gain traction globally, Romania faces additional challenges in adapting to the changing job landscape. The World Economic Forum’s Future of Jobs Report highlights that AI will transform industries, enhancing productivity and creating new roles, but also displacing jobs in areas like secretarial work, data entry, and cash handling.
Advanced economies are expected to benefit more quickly from AI adoption, with increased productivity and incomes for affected workers. In contrast, emerging economies like Romania face a slower transition due to lower digital and technological adaptation rates.
Skills Gap and Workforce Inactivity
Romania’s labor market is hindered by systemic weaknesses:
- High inactivity rates among the working-age population.
- A significant number of students lacking basic skills.
- Limited participation in lifelong learning programs.
- A low share of adults with basic digital skills.
The employment rate for individuals aged 15–64 is 63.3%, with higher employment among men (71.4%) and urban residents (68.9%). However, the rate of youth unemployment remains alarmingly high at nearly 27%, nearly double the EU average of 14.5%.
Structural Challenges and Sectoral Employment
Romania’s workforce distribution shows 11.9% employed in agriculture, 33.2% in industry and construction, and 54.9% in services. The private sector employs 82.8% of the workforce, while the public sector accounts for 16.6%.
Efforts to attract foreign workers aim to address critical gaps in construction and hospitality, but these measures only provide a partial solution to Romania’s structural labor challenges.
The Path Forward
To effectively address these issues, Romania must focus on:
- Improving integration programs for foreign workers.
- Enhancing wages and working conditions to compete with Western Europe.
- Investing in digital skills and lifelong learning programs to prepare its workforce for future trends.
- Tackling youth unemployment through targeted training and employment initiatives.
While Romania plans to hire another 100,000 foreign workers in 2025, the real challenge lies in creating a labor market that retains talent—both local and foreign—and adapts to the demands of an increasingly digital and interconnected world.