The number of employees in Romania increased to 5.135mn at the end of November, 206,700 (up 4.2%) more compared to the base level reached in the same month of the Covid year 2020, according to data published by the statistics office INS. During the toughest Covid period, from November 2019 to November 2020, Romania's employment dropped by 1.2% – therefore by November 2023, employment was 2.9% above the pre-Covid peak.

The actual involvement of the workforce in the economy grew by less than 4.2%, as a large number of employees previously on the grey market in construction and hotels, restaurants and catering (horeca) got normal labour contracts.

In the meantime, the country’s GDP advanced by 14.1% in Q3 2023 compared to Q3 2020 (+7.5% compared to Q3 2019). This translated into an overall advance of labour productivity – which, however, was not equally spread among sectors. While the productivity in the IT services sector has improved amid buoyant expansion, that of industrial activities diminished amid shrinking activity.

The sector that added the largest number of new employees is IT services (+40,200 employees, or +37.2%) – but this might be an effect of the migration to labour contracts from other forms of employment (freelance) for fiscal optimisation. The gross value added generated by the sector advanced proportionally by 40% over the past three years (+52% versus 2019).

Employment in horeca increased by 33,000 people (+16.3%) on base effects, and the employment in construction by 30,100 people (+7.2%) on a combination of thinner shadow economy (fiscal incentives) and genuine advance of the industry. Notably, both sectors marked marginal advances in terms of gross value added over the past three years and the higher employment rather reflects a lower shadow economy. Pretty close was the 27,900 advance of employment in the healthcare system (+6.7%) probably in both private and public sectors. 

The manufacturing sector saw a marginal (-0.2%) decline in employment (1.084mn at the end if November 2023) and migration of workforce from light industries and even automobile production (increasingly automatised) to manufacturing of slightly more value-added items such as electronic and optic devices, or rubber and plastic items – most of them car parts. Notably, the industrial production volume contracted by 7.1% in November 2023 compared to November 2020. Food manufacturing (+14,300 employees, or +9.0%) marked the steepest increase in absolute terms. 

In industry as a whole, employment decreased by 0.4% since November 2020 while the gross value rose by 2.3%, resulting in lower productivity despite the workforce shift towards more value-added segments. 

The employment in the sector of services aimed at households (including retail) increased by 16,900 people – but this was only a 2.1% increase. More people (+12,100 or +3.4%) were hired in November 2023 compared to November 2020.