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futureofromania

Insight of the Day: Romanians, hardworking but exposed to poverty

Key Points:

  • Romania has the highest in-work poverty rate in the EU. Despite working the longest hours in Europe, Romanians have a higher risk of poverty, according to an analysis by the Friedrich Ebert Foundation (FES).

  • Romanian salaries are not enough to cover the basic expenses of many employees. A study by FES found that the poverty risk rate in Romania is 15.3%, which is higher than in other EU countries such as Bulgaria (11%), Greece (10%), and Hungary (7%).

  • Poverty is not just a problem for the poor. Analysts point out that high poverty rates have negative consequences for the entire community, including lower consumption, reduced productivity, and increased pressure on public finances.

  • Several factors contribute to Romania's high poverty rate, including low wages, precarious work, and a high proportion of low-skilled workers.

  • Addressing Romania's poverty problem will require a comprehensive approach that includes raising wages, improving job security, and investing in education and training.

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