Friday, June 5, 2009

Romania May unemployment rate rises to 5.8 pct

BUCHAREST, June 5 (Reuters) - Romania's unemployment rate rose to 5.8 percent in May from 5.7 percent in April, the employment agency said on Friday, as global financial turmoil plagues the European Union state's manufacturers.

In May 2008, the unemployment rate was 3.7 percent.

Tumbling demand from the euro zone has hurt central and eastern European economies in recent months, forcing many manufacturers to halt production and lay off workers.

Moreover, the centre-left government needs to make deep spending cuts to curb Romania's large imbalances bloated by lavish spending by the previous cabinet, especially since the country secured 20 billion euros in IMF-led aid.

This may also mean a restructuring of the country's inefficient public sector, which employs about a third of Romania's workforce.

However, Labour Minister Marian Sarbu said in May that unemployment should rise less than previously expected this year, reaching no more than 7 percent or 620,000 people as the country's economic downturn shows signs of tempering.

Romania slid into recession in the first quarter of the year. (Reporting by Ioana Patran; Editing by Ron Askew)

1 comment:

Catalin said...

i wonder how accurate are these statistics.
anyway, Romania does much better than many others, for example US!