Romania Considers Public Sector Job Reductions

Romania has entered a technical recession over the last ten months. During this period, private sector employment decreased by more than 54,000 jobs. The nation has experienced one of the largest GDP declines in the European Union and the highest drop in purchasing power. Over 80% of Romanians report they are struggling financially. The public service sector and reduced pension increases are contributing to economic decline that could lead to impoverishment for Romanians. Romania is currently in a technical recession, according to reports. The Romanian State is considering measures to reduce public sector jobs. These measures include not replacing retiring employees, reorganizing institutions, merging structures, digitalizing administrative flows, and automating repetitive tasks. A report warns that the flow of retirees could create vulnerabilities and lead to a loss of skills in some sectors.