Romania sees rising unemployment and persistent poverty as tax burden hits workers

In 2025, 18.4% of Romania’s population lived below the relative poverty line, with 16.8% experiencing severe material and social deprivation, according to the National Institute of Statistics. The highest poverty incidence was among those aged 0‑24.

Unemployment rose to 6.4% in May 2026, surpassing the IMF’s target for the year. The increase was driven by a shrinking labour force amid a technical recession. Youth unemployment remains acute, with 28.8% of 15‑24‑year‑olds jobless, while the overall rate for adults 25‑74 is 4.9%.

Romanian workers also face the EU’s highest wage tax burden: about 42% of gross earnings are taken by taxes and deductions, far above most member states. Combined with falling real wages and a contracting economy, these factors heighten pressures on household incomes and consumption.