Over 44,000 layoffs by March 2009

The number of employees to be laid off by March 2009 has increased by more than 10,000 in the past three weeks, to exceed 44,200. According to the latest data centralization by the National Employment Agency (ANOFM), 22,300 Romanians will lose their jobs in December alone, between 8 December and year-end. A further 17,700 will be laid off in January. Most of these employees are working in the construction sector, the auto industry, the equipment segment, and light industry.

Areas which will be most affected by layoffs include Galati (3,578), Timis (2,686), and Arges counties (2,133), and the city of Bucharest (2,632). Trade unions have proposed a set of measures to limit the number of unemployed and help relaunch the economy.

"The lack of strong and coherent macroeconomic measures will lead to a drastic drop in general revenues and the monetary mass in circulation, which will result in the generalization of a major contraction of the job market in the region," said Adrian Izvoranu, Director of the Alliance of Employers Confederations in Romania (ACPR).

Izvoranu added that redrafting the budget and allocating funds for investments, attracting all European funds available, and simplifying the pre-financing mechanisms, combined with a fiscal policy oriented towards entrepreneurial development are some of the solutions which could help protect the workforce.

Business Standard