Black market labor up in Romania, 2.3 mln people working without labor contract

There are more than 2.3 million people working unofficially for cash in hand, or working 'black' in Romania, up around 900,000 compared to 2008, representing more than a third of working people in Romania, according to the country's Fiscal Council.

Evasion on social contributions, VAT and income tax stood at 10.3 percent of the country's GDP in 2010, the Council's data reveals. There were 6.6 million Romanians working in the economy in 2011, and employers reported only 4.2 million employees. Romania's black market labor went from 1.7 million people in 2006, to 1.4 million in 2008, only to lift to 1.8 million in 2009 and 2.2 million in 2010. The weight of employees working black advanced from 22.5 percent in 2008 to 35.3 percent in 2011. Should Romania collect its taxes to the maximum, its budget revenues would be close to the European average. The Fiscal Council says a reform on tax collection is in dire need. editor@romania-insider.com