Mass layoffs and production cuts in industry and construction

Romanian employers expect major production cuts and layoff actions in industry and construction fields for December 2008-February 2009, as well as stagnation of trade activity and services, although prices will rise, according to a statistic report released by National Bureau of Statistics (INS).

More than a quarter (29%) of employers in processing industry forecast a decline of production output for the following three months, and mounting finished product reserves, in the context of the sharpest fall of number of contracts and orders registered in the latter three months, both for domestic and international market, reads INS report.

Employers said they expect major layoff events in December 2008, while prior estimations had indicated a moderate growth of production and slight workforce cut.

Prices of industrial products are expected to rise in the following three months, INS survey found.

Production cut and reduction of orders in construction

Managers of construction companies expect a broader extent of production cut, and a sharp fall in number of contracts and orders, as well as mass layoffs.

According to INS report, companies forecasted a similar activity shrinkage trend once the winter season starts, for the entire construction sector.

Economic actors see a price growth of construction works, whereas at a lower pace than in December 2007.

Stability in retail industry

For December 2008-February 2009, retail players estimated there would be no major over-the-year changes, as the economic situation would maintain at the same value as in November 2008. They added that the overall order volume would continue the prior-signaled trend.
Employers expect no cut in workforce for the following three months, 85% of the surveyed said, whereas the retail prices will most likely rise.

Fewer employees in service sector

Economic situation in service sector in the last three months has been reviewed as positive, although compared to last year, the growth rate was milder.

More than half of surveyed employers (56%) in the service sector said the service demand would take a stability trend in the coming three months, however they did not excluded the possibility of slight workforce reduction.

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