Impact: No major layoffs because of the crisis

The estimates are being strongly contested by representatives of employer associations and businesspeople, who claim that electoral interests are behind such declarations. Meanwhile, light industry companies have begun laying off employees, and large companies are cutting roaming services, business class trips, and catering costs. “We expect the jobless rate to increase by up to two percent in 2009, but this will by no means double. It is possible that the number of unemployed will reach no more than 600,000,” said Akos Derzi, MMFES Secretary of State, in charge of workforce. Maria Grapini, representative of the light industry employers association, said this field will be most affected if the government does not take measures to help small businesses overcome the crisis. “We already had 30,000 layoffs at the end of September in light industry, which means 10 percent of total employees. By year-end, I estimate we will reach 20 percent, and the situation will become drastic if the government does not take action,” Grapini told Business Standard. “The 2009 unemployment rate has no reason to rise, considering that the Romanian crisis is a soap bubble that has burst. There may be layoffs in light industry or the construction sector, due to fewer orders and company reorganization plans, but the core of the economy will continue to function,” said Adrian Izvoranu, CEO of the Alliance of Romanian Employers Confederacies (ACPR). (S.C.)