Romanian Public Sector To Shrink Below 1.29 Million Employees By Year-End - PM

Prime Minister Emil Boc said Sunday on ProTV that Romania's public sector will employ fewer than 1.29 million people by the end of the year, with layoffs to continue through next year.

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The staff cuts will allow the salaries of the remaining personnel to be raised by 15% as of January 1, 2011, he said.

According to the prime minister, the number of public sector employees has gone from 1,350,000 in July, to 1,340,000 in August, to 1,316,000 in September and 1,291,526 in October.

Under an agreement with the International Monetary Fund, Romania must bring down to 1.29 million the total number of public servants in 2010, from nearly 1.4 million staff at the end of last year. The Government has decided to keep public sector hiring frozen in 2011 and fill only one in seven vacant positions, as the economy is recovering "slowly."

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