Emigration and rising immigration reshape Romania’s labour market: EY study

In a world that is constantly evolving, migration has become a crucial phenomenon influencing not only economies but also the social and cultural structures of countries. An EY study titled Migration at a Crossroads: The Evolution of Emigration and Immigration in Romania within the Global System examines the effects of migration on Romania, highlighting both the challenges and opportunities arising from this issue.

Migration is a historical process that has shaped societies over time. In recent decades, the global number of migrants has increased significantly, surpassing 300 million people. This growth is driven by factors such as armed conflicts, economic instability, and social disparities. Within the EU, migration intersects with an ageing population and labour shortages, and Romania is no exception.

Romania faces a dual reality: on one hand, a massive outflow of its citizens, especially young and well-educated individuals; on the other hand, a rise in immigration responding to the country's economic needs. This dynamic has been intensified by the conflict in Ukraine, which has led to a significant influx of refugees.

Corina Mîndoiu, a partner in People Advisory Services, at EY Romania, states: “Migration is not purely a social phenomenon but also an economic one that influences governments and the business environment. Globally, hundreds of millions live outside their countries of origin, with Europe as the main destination.

“The migration wave can be an opportunity but also presents major risks. For Romanian businesses, this means rigorous scrutiny of the entire immigrant recruitment chain and strict control over intermediaries. A more thorough selection process may involve additional time and higher costs in the medium and long term. However, this protects companies from legal and reputational risks that could directly affect profitability and lead to significant expenses to repair reputational damage.”

The emigration phenomenon has deeply affected Romania, with a decline of approximately 2.3 million residents over the past two decades. This loss has impacted human capital across all qualification levels. Young professionals and specialists leave in search of better opportunities, creating labour shortages in key fields such as information technology, engineering, and professional services.

The study emphasises that between 2008 and 2024, Romania experienced a significant loss of residents, making emigration a defining feature of post-communist Romanian society. This situation has brought economic challenges but also opportunities through increased remittances sent home by Romanians working abroad.

Poland, by contrast, has successfully implemented measures to encourage the return of its citizens who emigrated seeking better opportunities. Initiatives such as the Polish Returns Programme provide financial support, housing assistance, and employment opportunities in universities and research institutes, facilitating the reintegration of these professionals into the national economy.

In contrast, although Romania has begun to recognise the importance of attracting its diaspora, it faces challenges in creating an enticing and effective framework for the return of its citizens.

While remittances from Romanians abroad significantly contribute to the local economy, it is essential for Romania to develop clearer and more accessible policies to encourage citizens’ return, including fiscal incentives and reintegration programmes tailored to their needs. This reintegration is increasingly important as there is a visible trend of more Romanians returning to the country in recent years. When these individuals do not reintegrate into the labour market, unemployment rises, putting pressure on the pension system and the social health insurance system.

On the other hand, Romania is emerging as an attractive destination for immigrants, particularly from countries such as Nepal, Sri Lanka, and Turkey. Romanian companies actively seek labour from various parts of the world to fill personnel shortages. This trend is essential for maintaining economic competitiveness and supporting economic growth.

The study highlights that between 2022 and 2024, Romania recorded a positive migration balance, with more temporary immigrants than temporary emigrants. This shift presents a concrete opportunity to strengthen the human resource base and support economic growth, but it depends on the ability to integrate these workers into the labour market.

Iulian Pasniciuc, a director in People Advisory Services at EY Romania, notes: “Romania is at a stage of development where it is becoming a more relevant work destination. Two forces drive this trend: the economy's need for labour and companies feeling significant pressure regarding recruitment and retention. Additionally, Romania is becoming increasingly attractive to immigrants, especially as recent Eurostat data shows Romania had the highest growth in real household income per capita, increasing by 134% between 2004 and 2024.”

Nevertheless, immigrant integration remains a challenge. Language barriers, lack of market-required skills, and administrative difficulties can hinder the integration process. It is crucial for businesses and authorities to collaborate to develop effective integration policies that facilitate immigrants’ access to the labour market and ensure a smooth transition to an active and productive life in Romania.

The conflict between Russia and Ukraine, which began in February 2022, has caused a significant influx of refugees into Romania, turning the country into a major transit corridor and a temporary place of residence for many. By April 2025, Romania recorded over 11.5 million entries of Ukrainian citizens, with approximately 252,407 benefiting from temporary protection. According to EY’s analysis, Romania primarily served as a transit country rather than a main destination, accounting for a smaller share of Ukrainians who left Ukraine due to the conflict.

This situation has created both challenges and opportunities for the Romanian economy, providing local businesses with a valuable labour resource in sectors facing staff shortages. While most Ukrainian refugees are of working age, their integration into the labour market remains challenging, mainly due to language barriers and cultural differences. However, with adequate support from the business environment and authorities, Romania can turn this humanitarian emergency into an opportunity for economic and social growth.

Another important aspect of migration is the growing number of digital nomads – professionals who work remotely and choose to operate from Romania. These digital nomads can bring advanced skills and contribute to the local economy by stimulating consumption and innovation. Romania has introduced a legal framework to attract digital nomads, but the visa process needs simplification, and bureaucratic requirements should be reduced to make the country more appealing to these professionals.

It is essential for businesses and authorities to collaborate to turn migration into a competitive advantage. Through effective integration policies, support for immigrants, and attracting digital nomads, Romania can benefit from this phenomenon and build a sustainable economic future.

The study Migration at a Crossroads provides a detailed analysis of these dynamics and emphasises the importance of a strategic approach to managing migration. Romania has the potential to become an attractive destination for workers worldwide, but this requires a strong commitment from all involved stakeholders.