Analysis. How cutting foreign workers will affect the labor market in 2026. Recruiter: It's a populist measure without concrete solutions

29/01/2026

Rapidly growing demand for labor in construction, manufacturing, HoReCa and service sectors is prompting employers to increasingly turn to Asian markets amid an acute shortage of local human resources. The authorities, however, want to see a decrease in the non-EU quota of newly-admitted workers on the labor market in 2026, as the Ministry of Labor estimates that there will be more layoffs in the state next year and there is a need to have jobs for them as well. Here's what recruitment market specialists have to say about the decision.

Melania Pop (IWF):"It's a logical fallacy to think that any Romanian who is out of a job can automatically be placed in any other job"

Although there is talk of a reduction in the number of non-EU workers, a government decision (the act formally regulating this decision) has not yet been adopted. For now, a quota of 90,000 work permits for non-EU nationals, 10,000 fewer than in 2025. In short, the government wants a maximum reduction in the number of workers from Asia and other continents during 2026.

The Labor Minister says he is not positioning himself as an adversary of these employees, especially in the context that they "pay taxes and work honestly in this country". The official justified this decision against the backdrop of a wave of layoffs at the state in 2026 and the need for jobs for Romanians who remain unemployed.

"Rather than assuming that reducing the non-EU quota will create real opportunities for Romanians made redundant, it would be much more effective if these efforts were directed towards retraining, training and career development programs. This would really support Romanians' chances of reintegrating into the labor market, without blocking companies' access to urgently needed staff, in types of work that are difficult to cover locally (...) It is an error of logic to think that any Romanian who is unemployed can automatically be placed in any other job. We have to take into account a person's real skills, willingness to accept a certain type of work, but also geographical mobility. How many of those made redundant are willing to relocate for a new job? How many are able to work strenuous hours or night shifts?" Melania Pop, managing partner at recruitment agency International Work Finder, told Wall-Street.ro.

In practice, the law proposed by Ilie Bolojan to reduce the number of local public administration posts foresees a reduction of 10% in the number of posts actually occupiedwhich could lead to the dismissal of around 13,000 employees in the system. The Prime Minister said at the end of October that if staff in state institutions is not reduced, the 2026 budget will be "compromised". The Labor Minister hopes that the remaining jobs will be filled by Romanians made redundant from the state. The reality, however, is quite different.

I doubt that redundant civil servants will be willing to work in construction.

Romulus Badea, President of the Employers' Federation of Importers of Manpower (PIFM)

The decision was challenged even from within the Liberals. Former Labor Minister and current PNL MP Raluca Turcan criticized the current government's decision.

"I cannot imagine how a person who earns 7,500 lei or more in a state-owned company will take a job working in animal farms, in housekeeping, in garments or in food delivery for the minimum wage. Romanian companies have an acute need for labor. Some Romanian companies are preparing to move their activities to other countries because they can no longer bring in the cheap labor they need from abroad", wrote the MEP in a message published on her Facebook.

Why decreasing the quota of foreign workers is "counterproductive"

Reducing the quota of foreign workers on the grounds that this will free up places for people made redundant from the public sector is not a valid one, explains Yosef Gavriel Peisakh, general manager of Work From Asia.

"The government's decision to reduce the quota of foreign workers is considered counterproductive, given the real labor shortage. Employers warn that companies will not find local staff willing to take low-paid or heavy jobs in less attractive areas. The argument that the vacancies left by foreigners will be filled by Romanians available in the public sector is not supported, as many of them are not interested in manual work. The data also show a discrepancy between the real demand (more than 230,000 applications in 2025) and the approved quota (only 90,000), which may generate economic bottlenecks. The move sends a negative signal to investors, who are looking for predictability in access to labor," the head of the Asian recruitment agency told Wall-Street.ro.

For the year 2025, the Romanian Government has approved a quota of 100,000 foreign workersHowever, data centralized by the General Inspectorate for Immigration (IGI) show that, by 22 October, for example, more than 230,885 applications for employment permits had been submitted, almost three times the limit set by government decree. As of October 2025, the IGI had issued 78,016 employment opinions, with the remaining applications pending due to lack of quota or delays caused by the re-examination of files rejected earlier in the year.

The PIFM had previously drawn attention that, for 2026, market developments and current data show a significantly higher need for foreign workers than the quota for 2025. According to the organization, Romania needs a flexible policy, adapted to the economic conditions, which would allow for a rapid supplementation of the workforce in case the approved quota is exhausted.

"It would be very helpful for Romanian employers to have a shorter process, because now it takes 12 months. Given the uncertainties in the economic environment, with the deepening crisis, in a year's time we don't know what will happen. So this increases the degree of uncertainty and unpredictability even more. And then at least we should have stability, because if companies need employees, they need them now, not in a year's time. And then the fact that there are 90,000... we'll see if it's a sufficient number or not", Romulus Badea added.

"The Government's explanation is predominantly political, not economic"

Romulus Badea draws attention to legislative aspects. Article 4 of Government Ordinance no. 25/2014, on the employment and posting of foreigners in Romania, states that in order to obtain the employment permit for a non-EU foreign national, the employer must prove that he has published a vacancy notice at the county employment agencies (AJOFM) and that he has not found a Romanian, EU/EEA or Swiss Confederation citizen suitable for the job. This condition is part of the procedure to obtain the employment permit, issued by the General Inspectorate for Immigration (IGI). "In six months we will see what the status will be," he says.

Basically, the decision seems politically influenced, capitalizing on rhetoric that does not take into account economic reasons, lacking concrete solutions for Romanians who will be out of work in the future, explains Yosef Gavriel Peisakh. The quota cut was not a total surprise, he says, but "the result of a political compromise between social pressures and business demands.

Which areas of work are most vulnerable to staff shortages 

According to official data provided by the General Inspectorate for Immigration, at the end of 2024 there were over 140 640 employees from outside the European Union working legally in Romania. Most of them come from Nepal, Sri Lanka, Turkey and India, with manufacturing (29,141 employees), construction (28,538), trade (20,008), HoReCa (18,844) and administrative and support services (12,189) as the main sectors, according to data provided by PIFM this summer.

"At the moment, construction and HoReCa are the top two sectors in Romania with the biggest shortage of personnel. But now, in the current context, when the construction market is seriously suffering from the blocking of projects from the PNRR or projects with other state funding and contracting, the order might change a bit," Romulus Badea added.

Melania Pop points out that the most exposed fields remain those involving physical labor, shift work, intense effort and where, traditionally, the interest of Romanian candidates is low. We are talking about logistics, warehouses, retail, construction, recycling, food production and HoReCa.

"From what we see in working directly with our clients, the logistics and retail area is one of the most exposed. Current estimates show that, in the utility centers of the big retail chains alone, around 100,000 workers will be needed in the next 2-3 years. This is a significant figure, especially when you consider that we are not just talking about seasonal peaks, but daily operations at a steady pace throughout the year," added the International Work Finder leader.

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