Unemployment in RO is among lowest in Europe and will not rise soon

The seasonally adjusted unemployment rate in Romania remained steady at 5.2% in June, up from the 3.8-4.0% range where it has hovered during most of last year but is still moderate in absolute terms.

Notably, the unemployment rate started going up in February (to 4.3% from 3.7% in January), before the coronavirus outbreak in March.

In Europe, Romania still boasts among the lowest unemployment rates, and local analysts see no significant increase over the next couple of years.

In June, the month in which restrictions on the spread of the coronavirus pandemic (COVID-19) began to be lifted in most EU member states, the unemployment rate in the EU rose to 7.1% from 7% in May.

In the euro area, the unemployment rate rose to 7.8% from 7.7%, according to Eurostat, quoted by Agerpres.

Banca Transilvania analysts estimate that the average annual unemployment rate in the period 2020-2022 will be 5.4%, as the decrease in 2021 and 2022 will offset the increase in 2020.

Banca Transilvania's chief economist cited the "implemented economic policy measures, increased flexibility in the labor market and the prospects for the domestic economy to enter the post-pandemic cycle in the short term."

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