|  10.10.2017

Year-end with growth adjustments for businesses in Romania

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Evolution of the number of employees

The percentage of companies that expect the number of employees to stay the same in 2017 increase from 17% in March to 24% in September 2017. At the same time, 28% of companies versus 39% previously say they expect staff numbers to increase by 1% -5% this year. Only 15% of companies (compared to 24% in March 2017) expect the number of employees to grow by 5% -10%.

Of all 12 industries included in the compared analysis, only in the telecommunications and professional services industries are most companies (50% and 31% respectively) who say they maintain the same number of employees in 2017 as in 2016.

Forecasts on the evolution of salary levels

If at the beginning of the year 93% of companies predicted wage increases, only 6 months later their percent dropped to 84%. The 9 percentage points of the difference is transferred to companies that say they will not raise wages in 2017. Another important adjustment is for companies that expected wages to grow between 5% and 10%. Their percentage drops to 31% in September from 41% in March 2017. Also, companies predicting wages rising by 10% -20% are down 5 percentage points in these six months.

The industries where most companies say that wages will increase by 10% -20% this year are: pharmaceuticals and healthcare (38%), construction and real estate (35%), research and development (33%) and agriculture (30%).

Top 5 Challenges and Opportunities

The most important challenges for companies in the second half of 2017 are: political and legislative instability (54% vs. 28% in the first part of the year), the general state of the economy (49% vs. 41%), the problems with the labour force (35% vs. 17%), the steep increase of the salary level (27% vs. 13%) and the decrease of internal investments (21% vs. 23%).

The most important opportunities for companies in the second half of 2017 are: consumption growth (65% vs. 19% in the first part of the year), export and opening of other markets (59% vs. 33%), digitalization and opportunities online (42% vs. 37%), partnerships with other companies (31% vs. 27%) and access to European funds (30% vs. 17%).

"This analysis is the consequence of the need to understand the economic environment in Romania. It records the opinion of the respondent companies on the evolution of turnover, profit, investments, number of employees, salaries. At the beginning of 2017, companies' responses indicated some optimism. Even if the realities of each industry are specific, the comparative analysis presented in the autumn edition of the Valoria study shows an important negative adjustment of these indicators operated by companies in a year that put great pressure on the business environment in Romania. We will see how these trends will be reflected next year in the next blitz survey of March 2018", says Elena Badea, Managing Partner Valoria.

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