The unemployment rate in hotels and restaurants has reached 60% and risks climbing to 90% in the coming period, given current conditions, estimate representatives of the Federation of Romanian Tourism Employers (FPTR).
According to a press release, the crisis caused by the coronavirus epidemic has “paralyzed” tourism activities, this being the most affected branch of activity.
“In addition to these unemployed individuals, approximately 50,000 people on the coast are in a dramatic situation, as their unemployment benefits ceased on April 1st and they no longer have any source of income. They have fixed-term employment contracts for six months and will no longer benefit from unemployment indemnity in 2020, because they will not meet the contribution period condition of at least 12 months in the last 24 months, given that they cannot be hired because hotels on the coast have suspended their activity,” stated Dragos Raducan, FPTR Executive First Vice-President.
According to FPTR, many seasonal employees will remain without any income, salary, or unemployment indemnity this year, as tourism companies operating seasonally will no longer carry out their activity under normal conditions.
Under these conditions, the Federation of Romanian Tourism Employers has urgently requested the issuance of a normative act to establish, exceptionally for this year, a contribution period of 8 months (instead of 12 months) for seasonal employees, by derogation from art. 34 para. 1 lit. a of Law no. 76/2002, so that all tourism employees working in seasonal units can benefit from unemployment this year, the statement mentions.
According to data published by the Ministry of Labor, over 1 million Romanians are unemployed as of April 6th. Of these, 952,929 have suspended individual employment contracts and 187,548 have terminated individual employment contracts. Out of the total of 952,929 suspended individual employment contracts, 12.4% represent unemployed persons from the hotel and restaurant sectors, i.e., 118,277 people, thus bringing the unemployment rate in this branch to 60%. At the end of 2019, 194,519 people were employed in the hotel and restaurant sectors.
Source: Economica
Frequently Asked Questions
What is the current unemployment rate in the Romanian tourism sector?
The unemployment rate in hotels and restaurants has reached 60%, with projections suggesting it could rise to 90% due to the ongoing crisis.
Why are seasonal workers on the Romanian coast facing financial hardship?
Many seasonal workers have fixed-term contracts of only six months, making them ineligible for unemployment benefits which require a 12-month contribution period within the last 24 months.
What legislative change is the FPTR requesting?
The FPTR is calling for an emergency decree to reduce the required contribution period for unemployment benefits from 12 months to 8 months for seasonal employees.