Unemployment could increase up to 8 pct (AOAR)

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Romania could record an unemployment figure of eight percent, in the context it lost about four million jobs in the latest 20 years, with current nonofficial estimates on the black market amounting to 1-1.5 million people, according to the White Paper of the Romanian Businessmen Association (AOAR) on prospects for the national economy in 2010, made public on Thursday, at a press conference.

Compared to the average estimate of unemployment of 7 – 7.3 percent, by AOAR, there are possibilities unemployment to worsen up to eight percent, if the lack of incentives is maintained in the economic environment and if the parafiscality growth will continue, as the proposed extension of tax to fuel the social security and unemployment budgets.

Others worsening factors named by the AOAR were maintaining a restrictive labour market, lack of incentives to create new jobs, measures which discourage SMEs, like the replacement of the 3- percent tax on revenue with the 16-percent tax on profit, maintaining bureaucracy and high administrative costs (for instance, there was recorded a 20 percent growth in local taxes in 2010), increase in the inadequacy degree of workforce qualification and inefficient re-training programmes.

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