Romania’s Unemployment Rate Will Not Exceed 10% In 2010, Might Decrease As Of April

According to Preda, despite layoffs planned for this year, the unemployment rate should not exceed 10%.

„I am confident it will not exceed 10%. We expect the unemployment rate to rise until March and if the increase is maintained at the level registered so far, then the unemployment rate in March might be of 8.8% or 8.9%. Starting April, when the agriculture and the construction sectors are revived, the unemployment rate might either scale down or register an increase. I am also confident the labor market will revive starting the second quarter of the year,” said Preda.

Preda highlighted a real reason for worry should be the distribution of the unemployment rate, the fact that there are counties where unemployment rate is very high, adding certain measures must be taken to uphold these areas.

Preda said the estimation made by Labor Minister Mihai Seitan regarding the decrease of the unemployment rate to 7.3% towards the end of the year is incorrect.

The unemployment rate in December 2009 was of 7.8% compared to a 7.5% unemployment rate in November, and the total number of unemployed people was of 709.383.

The 7.8% unemployment rate in December 2009 was the highest registered last year, while the annual average unemployment rate stood at 6.3%.

Of the total number of unemployed people, 435,497 receive unemployment aid and 273,886 have no unemployment benefits.

According to ANOFM, the biggest number of unemployed people come from the private sector (578,280).