Home Facts trade

Chinese plug the gaps in labor-short Romania

Chinese plug the gaps in labor-short Romania

Write: Hall [2011-05-20]
In the run-down Romanian town of Bacau, 320 kilometers north of Bucharest and not far from the border with impoverished Moldova, several hundred newcomers have begun making themselves at home.

They tend not to venture out, keeping mostly to a dormitory that has been built to house them. There they play cards and tune in to their favorite television shows, beamed from China.

So low-key is their presence that most locals do not even know they are in town.

But these 800 men and women, flown in from Fujian province, are one employer's answer to Europe's manpower problem.

That man is Sorin Nicolescu, manager of a Swiss-owned firm that turns out sportswear for labels including Prada.

In Nicolescu's warehouse in Bacau, hundreds of sewing machines that had fallen silent are now whirring again, thanks to his newly imported labor.

He does not like having to hire abroad. It is more expensive and the housing costs eat into his margins.

But before he started recruiting in China, finding Romanians to work the machines had proved almost impossible.

Faced with stiff competition in the textile industry, his salaries, at about US$350 (HK$2,730) a month, were hardly likely to lure a young Romanian with dreams of a West European wage several times that.

Of its 22 million people, an estimated two million have emigrated to save up a few lei, mostly in Italy and Spain.

For employers such as Nicolescu back in Romania, where the unemployment rate has fallen to its lowest level since the Ceausescu dictatorship, there is simply no one left to hire.

The Romanian government knows it.

Prime Minister Calin Popescu Tariceanu is exhorting citizens to return. "We are having a crisis of the labor force," he said recently.

And Finance Minister Varujan Vosganian says Romania lacks half a million workers.

He is not talking about doctors and IT programmers gone to make their fortune elsewhere. Rather, Romania needs its skilled laborers to return - the people who are going to build the infrastructure that the country severely lacks.

"We need more engineers, mechanics and bricklayers," Vosganian said. "We have a labor deficit of 500,000 employees."

Reports are that within weeks another 8,000 workers will arrive from China, India, Pakistan, Moldova and Turkey for jobs on building sites and shop floors.