Romania Ranks Last In EU By No. Of Employees With Definite Period Contracts – Report

Romania ranks last among the European Union member states by the number of employees with contracts for a definite period, as only 1% of Romanian employees benefit from this type of contracts, compared to the EU average of 15%, according to a report on the labor market.

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The report, presented Tuesday by the representatives of the National Trade Union Bloc BNS, indicates that health insurance contributions rose in 2009, yet, the tax base for these contributions has expanded significantly since July 2010.

According to the report, part-time jobs and employment for a definite period could be viable alternatives to traditional employment, especially in times of economic crisis, when market conditions require more flexibility.

Part-time employment in Romania is at less than half the EU average, but ahead of Bulgaria, Slovakia, the Czech Republic and Hungary.

The report also indicates that, although the unemployment rate increased in 2009, labor productivity has decreased, both per employee and per hour.

"The decrease in labor productivity in 2009, despite strong increase in unemployment, indicates the restructuring of economy was made in the private sector and where it was easier to do it - the human resources sector, but that was not sufficient," the report also says.

The report also notes that the Romanian economy remaining stuck in a negative in 2010 is also the result of a defensive strategic approach. Also, even if staff cuts were necessary in several economic sectors, it does not mean this measure is also sufficient.

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