EBRD: Romanian Public Sector Hiring Kept Unemployment Low

Unemployment remained low in Romania in 2008-2010, compared with the levels recorded in Central Europe and the Baltic states, mainly because unemployment was relatively low even before the crisis and the public sector absorbed a lot of personnel, says a report by the EBRD.

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"Unemployment rates began to decline in 2010, reflecting shrinking labour forces as a result of emigration and informal employment and also rising formal employment. However, they remain near, or at, double-digit levels in most countries in central Europe and the Baltic states (CEB) and south-eastern Europe (SEE) regions (except Romania, where low pre-crisis rates and high public sector employment have limited the rise)," says a report published Tuesday by the European Bank for Reconstruction and Development (EBRD).

Romanian President Traian Basescu said Monday that the number of public sector employees has decreased from 1.45 million at the start of 2009 to 1.25 million now. He added that the public sector must be reduced to 1.15 million by the end of next year.

The number of state employees grew by about 250,000 in 2006-20080.

According to Eurostat, the unemployment rate was 7.5% in Romania in September, compared with almost 10% in the EU, 9.4% in Poland, 9.9% in Hungary and 11.9% in Bulgaria.

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