More than a quarter of Romanian employers indicate intentions to increase their payroll in the second quarter, 7% anticipate a decrease, and 66% see no change, according to the latest Manpower Employment Outlook Survey.

The seasonally adjusted Net Employment Outlook stands at +10%, being relatively stable when compared to the current quarter, as well as year-on-year.

“Even after eliminating the seasonal variations that since 2013 have boosted employer optimism in the second quarter of the year, we are left with the clear picture of 23 consecutive quarters of positive hiring intentions, of which the past 5 have had relatively stable, double-digit seasonally adjusted Net Employment Outlooks,” said Valentin Petrof, ManpowerGroup Romania’s Country Manager.

“The trend toward continuing job growth is by no means irreversible, but the current effects of employer optimism are making themselves felt, both in terms of the number of opportunities for job seekers, and in terms of increased competition for talent,” he added.

Outlooks are positive across the country, with the Bucharest & Ilfov, Center, and South-West regions being the most optimistic (a Net Employment Outlook of +16%). The employers in the Bucharest & Ilfov region report the strongest forecast in almost five years, since the third quarter of 2011, and the Net Employment Outlook strengthens by 7 percentage points both quarter-on-quarter and year-on-year, according to Manpower.

Strong year-over-year improvements are also reported by employees in the South-West region, where the Net Employment Outlook has strengthened to pre-recession levels for the first time in seven years (since the second quarter of 2008). Only 2% of employers in the South-West report intentions to decrease their staff levels, this being the lowest percentage in Romania.

On the other hand, the companies in the North-East region are, for the second consecutive quarter, the least optimistic. The +4% Net Employment Outlook is 3 percentage points stronger than in the first trimester of 2016 but decreases by a sharp 27 percentage points over last year’s second quarter.

Nine in ten industry sectors plan to hire new staff in the next three months. Some 41% of Manufacturing employers have reported intentions to increase their payrolls during the second quarter. The seasonally adjusted Net Employment Outlook reported in the sector stands at +26%, strengthening both quarter-on-quarter and year-on-year by 5, respectively 4 percentage points and reaching its strongest level since Q4/2012.

The only area in which employers are forecasting decreases in staffing levels is Electricity, Water & Gas, where the Net Employment Outlook (-6%) has only been positive once in the past three years.

Hiring plans are positive across organizations of all sizes, with large organizations once again reporting the most favorable hiring climate, with an Outlook of +22%. The micro-organizations and medium-sized organizations continue to be cautious, with an Outlook of +4%.

The Q2/2016 edition of the Manpower Employment Outlook Survey was conducted between January 13 and January 26 on 627 employers.

Manpower: Steady hiring pace in Romania in the first quarter of 2016

Romanian employers’ hiring intentions, the strongest in seven years

Irina Popescu, irina.popescu@romania-insider.com