Central bank: About 30% of Romania’s labor force is abroad

About 30% of Romania’s labor force and 13% of the country’s population works abroad, central bank vice governor Liviu Voinea said yesterday. This represents Romania’s lost Gross Domestic Product, he added, reports local Agerpres. Although Romania currently has a 5% unemployment rate, it is still far from full employment, because it has a very important demographic problem, Voinea explained. The aging population affects the potential GDP. The aging problem is doubled by a high rate of people at risk of poverty. A 1% increase in the share of population over 65 leads to a 1.3% drop in the potential GDP, according to estimates done by the central bank, Voinea said. The standard of living and the wage difference continue to explain the migration wave even against the backdrop of high economic growth rates, he added. Most IT specialists working abroad consider returning to Romania editor@romania-insider.com