ZF English

Crisis wipes out 600,000 jobs

09.02.2010, 16:00 9

The unemployment rate hit 8.1% in January, the peak of the past8 years, and new job creation plummeted last year, as privatecompanies created 700,000 fewer jobs than in 2008.

According to statistical data obtained by ZF, 5.7 million activelabour contracts were registered with the Labour Inspection in late2009, compared with 6.3 million at the end of 2008.

Companies cancelled 2.2 million labour contracts in 2009, butunlike in previous years they sealed 700,000 fewer contracts: just1.6 million, from 2.3 million in 2008 and 2.5 million in 2007. Thedata effectively represent both staff migration from one company toanother, and labour market incomings/outgoings.

"We only register individual labour contracts in the privatesector. State contracts have their own registry," explained AndreeaTudorie, Labour Inspection official.

Labour contracts are cancelled through dismissal, agreementbetween the two parties or retirement, in line with the LabourCode, but there are no statistical data with regard to the weightof each category in the total number of cancelled workcontracts.

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

The private sector says the moves the government has made so farare "defensive" and "good only on paper".

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

"Keeping and creating new jobs remains our priority," governmentrepresentatives said.

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