Crisis wipes out 600,000 jobs

The unemployment rate hit 8.1% in January, the peak of the past 8 years, and new job creation plummeted last year, as private companies created 700,000 fewer jobs than in 2008.

According to statistical data obtained by ZF, 5.7 million active labour contracts were registered with the Labour Inspection in late 2009, compared with 6.3 million at the end of 2008.

Companies cancelled 2.2 million labour contracts in 2009, but unlike in previous years they sealed 700,000 fewer contracts: just 1.6 million, from 2.3 million in 2008 and 2.5 million in 2007. The data effectively represent both staff migration from one company to another, and labour market incomings/outgoings.

“We only register individual labour contracts in the private sector. State contracts have their own registry,” explained Andreea Tudorie, Labour Inspection official.

Labour contracts are cancelled through dismissal, agreement between the two parties or retirement, in line with the Labour Code, but there are no statistical data with regard to the weight of each category in the total number of cancelled work contracts.

The number of contracts included in the Labour Inspection books does not reflect the number of private sector employees, but the number of jobs, as it refers both to employees just entering the labour market and signing their first contract and to those who already have a job and sign a second labour contract.

The private sector says the moves the government has made so far are “defensive” and “good only on paper”.

The government decided to further apply this year the measure by which companies sending their employees in technical unemployment are exempt from paying social security contributions for 3 months. Also, Premier Emil Boc stated the government was preparing a regulation by which firms hiring unemployed persons would not have to pay contributions.

“Keeping and creating new jobs remains our priority,” government representatives said.