Labour Market for 2017 also for Romania

Financial extremes and uncertainty are two aspects that characterize today’s economic world. Orientation to savings and for companies offering job stability are the trends observed in various indicators – from debt level (measured as the ratio of own capital and the one borrowed) to the number of weeks needed to occupy a position especially at small companies. There are people for whom survival is measured in the ability to get food on a daily basis but also in millions spent daily to meet different needs, more or less exotic.

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2017 Report of the ILO highlights these slippages, these extremes:

  • The overall rate of unemployment will rise to 5.8% in 2017, which means 3.4 million people over 198 million people out of work in 2016.
  • In the second quarter of 2016 about 6 million people in the European Union had no job for about two years.
  • For Europe and especially Eastern Europe lower rate of unemployment is not reflected by economical growth but rather by the workforce decrease by 0.7% for 2016-2018, and partly explained by increasing the rate of emigration.
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ILO Geneva – World Employment 2017

If we add these aspects and intentions mentioned by the the new US president on economic policy of the United States – referring to the surcharge rates for imports from China and Mexico; to close borders for approximately 11.5 million of undocumented immigrants, which represents about 3.5% of the US population, to focus on the strengthening of the US dollar by stimulating domestic production at the expense of imports, the economic picture globally is as complex as negative, maybe even scary for the common man, whether working in the US, Europe or Asia.

From an optimistic perspective, Romania seems to be on a roll this year, with economic growth forecast to 3.4% by “The Economist”, mainly due to consumption, which in turn has its roots in the reduction of VAT and the increase in minimum wage.

Seen from the employer’s perspective, these measures can increase the gap between companies with strong financial strength, which will increase their exponential revenue and small, that either will practice more often payment on illegal basis or minimum salary on the working document, legally and the difference in hand or be forced to close their doors.

For large companies, according to industry and the profit level they have previous set will be important the decision to invest in technology – is more efficient, more profitable to buy software, an application that makes work  for more employees than increasing salaries of existing ones under the new legislation?

On the other hand, in the small companies will matter greatly tiny balance between revenue from fiscal loosening and expenses arising from wages and in this case talkings about benefits for employees, as multinationals pay are excluded from the start. We will not talk in this situation about crisis talent, and especially of personal crisis but for multitasking and overtime to existing ones.

In such a context, it is not by chance result of the study conducted by Hypo about trends in recruitment in Romania – 57% of employers will have less than 10 new positions open to seniors with experience, but will also work to hiring juniors selected based on skills acquired from various internships or “experience” in other jobs.

Clearly the labor market is governed by a climate of instability, reflecting what is happening globally – economically and politically that’s why the only aspect that we can control as employees is to do our job in a professional manner and be open to new specializations that occur and could help us in the long term.

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* Sources for the article:

Raportul Hipo

ILO Report

Why Trump will find it hard to make economy greater

Trump’s presidency could have ‘mildly positive’ effect for the UK

The Economist: Romania will record the highest economic growth in the EU in 2017

Evoluţia cadrului fiscal, provocarea economică a oamenilor de afaceri în 2016 şi 2017

The Macroeconomic Consequences of Mr. Trump’s Economic Policies

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