Growing concern over labour shortage due to migration

The extent of skilled labour migration from Romania to other labour markets of the European Union is a pressing topic on the agenda of trade unions. The unions share the concerns of employer organisations and government representatives at the growing shortages in the domestic labour market. The situation is particularly acute in the construction sector, where labour shortages have been estimated to be as much as 50% by one employer organisation, corresponding to about 300,000 workers.

Extent of labour migration

According to the data presented by the media in Romania, which concur with the information of Daniela Andreescu, Secretary of State in the Ministry of Labour, Social Solidarity and Family (Ministerul Muncii Solidaritatii Sociale si Familiei, MMSSF), it has been estimated that in 2006 around two million Romanian citizens were working abroad. The National Confederation of Free Trade Union Fraternity of Romania (Confederatia Nationala a Sindicatelor Libere din România Fratia, CNSLR Fratia) estimates that the number of migrant Romanian workers exceeds 2.5 million persons.

Romanian workers most frequently target three areas of economic activity mostly in the western European labour markets: healthcare and personal social services, construction, and agriculture.

In healthcare, for instance, for the period 2002–2005, data provided by the Sanitas Federation (Federatia Sanitas) of healthcare workers and the Healthcare Workers Solidarity Federation (Federatia Solidaritatea Sanitara) reveal the following geographic distribution of Romanian medical assistants: over 2,500 workers in Italy, more than 1,200 in Hungary, over 500 in Switzerland and Germany, and more than 600 in the United Kingdom. Moreover, in Germany official records indicate the presence of 1,000 Romanian medical doctors, mostly general practitioners, while around 550 doctors work in Hungary.

Neither Romanian statistics nor those of other countries contain available data on Romanians working abroad in the construction and agricultural sectors.

Reasons for migration

In the opinion of Valentin Mocanu, spokesperson for CNSLR Fratia, out of the total number of Romanian migrant workers, over 45% have secondary education, 35% hold a third-level degree and 20% have not completed secondary education.

The main reason for migration continues to be low pay in Romania for more than 50% of those who seek work abroad, while over 20% of migrants cite the higher living standards in the countries of destination as a reason to leave Romania (RO0606019I).

The data resulting from the round table conference on ‘What is the trend of healthcare workers’ migration?’ organised by CNSLR Fratia in December 2005 revealed that in Romania a medical assistant earned an average monthly gross wage ranging between €110 and €360, compared with €600 in Hungary, €1,320–€1,770 in Italy, €1,300–€2,300 in Germany, and €800–€3,500 in Switzerland and the US. In Romania, the monthly gross wage of general practitioners ranges between €290 and €785, compared with €2,800–€5,000 in Germany.

The level of wages abroad is also attractive for other Romanian graduates, such as teachers or other specialists, who tend to apply for seasonal jobs in the construction or agricultural sectors in western European countries.

Views of social partners

Trade unions

All of the nationally representative trade union confederations have expressed their concern over the negative impact of the emigration of qualified and young workers in particular from Romania.

To counteract the threat of a labour market crisis in Romania, throughout 2006 Federatia Sanitas and other trade unions in the education and public sectors contested government pay-related decisions and demanded a pay rise in order to control workforce migration (RO0610029I, RO0610039I, RO0608039I). For 2007, the healthcare and education sectors have obtained from the state budget an increase in wages of around 20%–24%.

Government

As for the government authorities, MMSSF acknowledges the problems created by the labour shortage in the clothing, construction, healthcare and tourism sectors as well as in certain high-technology specialisations.

In November 2006, Prime Minister Calin Popescu Tariceanu declared that he wanted Romanian workers ‘to come back home’ and decided to set up a working group comprising representatives of MMSSF, the Ministry of Foreign Affairs (Ministerul Afacerilor Externe, MAE) and the Ministry of Transport, Construction and Tourism (Ministerul Transporturilor, Constructiilor si Turismului, MT). This working group has been given the responsibility of devising a strategy for informing Romanian workers abroad of the improvement in wage-related conditions in Romania.

‘In the construction sector, there is a workforce deficit and this is one of the reasons why certain public works are being delayed,’ Prime Minister Popescu Tariceanu admitted.

Employer organisations

One of the major employer organisations in the construction sector, the Ownership of Romanian Contractors (Patronatul Societatilor din Constructii, PSC), claims that it is experiencing a labour shortage of 40%–50% in the sector, which corresponds to about 300,000 workers. PSC admits, however, that Romanian companies in the field are not yet prepared to provide wages similar to those in western European countries.

Another important employer organisation, the Romanian Association for Employers in Construction (Asociatia Româna a Antreprenorilor de Constructii, ARACO), believes that the major European companies arriving in Romania will bring workers from neighbouring countries to make up for the shortage of local workers in the construction sector.

Undoubtedly, as highlighted by Laszlo Borbely, Minister Delegate for the coordination of public works and regional management, the main challenge now for the construction sector in Romania, following accession to the EU on 1 January 2007, is how to offer wages comparable to those in other western European Member States. If a solution is not found soon, Romania will be faced with serious labour supply problems, and the situation may arise where there will be no more employees in certain sectors to meet the requirements of the growing economy and the increasing demand for workers.

Constantin Ciutacu, Institute of National Economy, Romanian Academy