Romania, a Poor Land, Imports Poorer Workers

Foreign investors appreciate Romania for its low labor costs. But once Romania joined the European Union as of January 1, 2007, many of its young, skilled workers moved away to Europe’s wealthiest cities. As a result, some employers – especially those in small dreary factory towns – confront ongoing labor shortages. One factory manager in Bacau solved the problem by contacting an employment agency in China and hiring hundreds of Chinese workers. Matthew Brunwasser of “The New York Times” suggests that work conditions are good: The factories pay almost double the Romanian minimum wage, along with room and board. The country enjoys rapid economic growth, but stands among Europe’s poorest nations, with a shrinking population and a low unemployment rate by European standards. As a result, because of an increasingly mobile work force, Romanian employers must tread carefully between treating workers well and keeping up with competitors in Asia. – YaleGlobal