Some Cos Planning Layoffs Withdrew Notices To Local Employment Agencies – Official

"It’s hard to estimate how many people will lose their jobs in the following months, because some employers have withdrawn their notifications from local employment agencies. Companies are standing by, probably waiting to see what happens on the market, with the economy, they aren’t yet determined to make their decisions for the following period,” Diaconescu said.

The number of layoffs planned for November, December and the first quarter of 2009 is estimated at 34,500-35,000 people.

She said that, in general, large companies, multinationals, adopt restructuring plans, while small and medium sized companies put off applying reorganization measures.

Diaconescu also said the real number of people to lose their jobs in the following period could be even higher, as not all companies notify local employment agencies, although they are obligated to do so 30 days before they operate layoffs.

Diaconescu said about 20,000 people were laid off in Romania since the beginning of the year, but not within massive layoff programs.

The country’s unemployment rate increased 0.1% on the month in October, reaching 4%, but is still lower than the rate recorded in the same period last year, according to employment agency data.

Labor minister Mariana Campeanu said last week that Romania’s unemployment rate is within normal limits for now. She added state institutions are prepared to deal with a potential rise in unemployment.