Labor costs in Romania rose by 19 % in the last year. The most significant advance was seen in the construction business.
Workforce prices have soared by 27 % during the last year, according to the data revealed by the National Institute for Statistics (INS). During this period, the hourly costs of labor have soared by 19,22%.
Labor costs represent both the wages and the indirect payments (social security or insurance policies). Companies from transport, storage and communications, hotels, restaurants, real estate and the mining industry have seen the growth of employment expenses.
Meanwhile, the labor costs in public administration have registered the smallest climb, of 7,86 %.
Asians on construction sites The growth registered by labor costs is extreme, considering the fact that work productivity levels have raised at a much lower pace” said Ovidiu Nicolescu, president of the National Council of Small Businesses in Romania. According to Nicolescu, some of the effects of expensive workforce in Romania will lead to inflationary pressures, to a drop in the economic potential of small companies. Also the Romanian economy will be less competitive on an international scale.
“Manual labor costs soar from day to day” said Laurentiu Plosceanu, president of the Romanian Association for Construction Entrepreneurs (ARACO).
The minimum wage of a worker in this area rose from 318 euros/month to 385 euros/month during the 12 month between November 2006 and November 2007. In order to replace Romanian workers who left the country, the construction companies will call workers from Hungary, Bulgaria or from Asian countries.
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