Romanian Govt Raises Unemployment Budget On Planned Job Cuts

Romania’s unemployment budget will have 321.57 million less in revenues and RON1.1 billion in expenses, widening its deficit by RON1.48 billion, according to the budget revision draft act, obtained by MEDIAFAX.

The Government warns in the draft that economic difficulties will reflect onto the labor market and the number of employees will decrease by 1.8%. The Government considered a 0.9% increase in employment when it drafted this year’s budget.

Romania’s unemployment rate was virtually unchanged in July at 7.43%, from 7.44% in June, the country’s employment agency ANOFM said Wednesday. However, the jobless figures worsened compared with the year-earlier period. In July 2009, the unemployment rate was at 6.3%.

Over 70,000 people will remain jobless this year from the public sector alone.