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Labor market uncertainties and risks are significantly heightened in the near future by Russia's invasion of Ukraine and the international sanctions ordered in response, which are likely to exacerbate the energy crisis and disruptions in supply and production chains, and push up prices for other commodities, it is stated in the minutes of the monetary policy meeting of the National Bank of Romania's (BNR) Board.
Some Board members believe that the impact is likely to be mitigated by the government support measures - including those related to corporate energy costs and to the situation of the employees of the sanctioned companies - but also by the lifting of all mobility restrictions in early March, as the state of alert came to end.
Over the longer term, uncertainties are also linked to the ability of certain companies to stay afloat after the cessation of government support measures, amid the high energy and transportation costs, but also due to the need for technology, which could lead to restructuring or bankruptcy. Also important for the future situation of the labor market are the speed and effects of digitization and automation at domestic and international level, as well as the implications of the employers' increasingly resorting to non-EU workers, reads the document released on Friday by the central bank, Agerpres.ro informs.
