Gross wages have increased by more than 30% in Romania and Bulgaria since 2010, according to a study by Coface.

By comparison, gross salaries have gone up by over 20% in Hungary and Poland during this period.

The labor shortages and rising labor costs are worrisome for companies in the region.

“Unemployment rates have fallen to the lowest level so far, but most economies in CEE have unemployment figures higher than the EU average,” according to Coface.

Household consumption has become the main driver of economic expansion in the region in the last two years. Households and the region’s global economic activity have benefitted from increases. However, companies have been affected as they are faced with an increasing force in wage bargaining, being compelled to accept higher compensation costs, the study shows.

Romania's salaries to GDP ratio, among the lowest in Europe

editor@romania-insider.com