Romanian labour law only helps statistics

A new law against illicit work came into effect two weeks ago. Employers will be liable to pay fines of between 100 and 5,000 euros and even serve prison sentences of up to two years if they employ people illegally. Although the law has prompted the registration of 200,000 jobs in the past two weeks, new jobs are still lacking, complains the daily Gândul: "With an average net wage of 530 lei [130 euros] and gross 700 lei [170 euros] the state would stand to generate 210 million euros annually in social security contributions. ... But we're not talking of new jobs here but of legalised jobs that are now being taxed. For the unemployed the situation remains unchanged: the economy is not creating new jobs. ... It's just that the statistics look better now. So within two weeks the number of employed has risen by the amount that was lost in the last six months of crisis. But the economic is still in a bad way."

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