Romanian textile industry losing ground amid job losses

Romania’s textile industry has lost around 40,000 jobs in the past year, according to The Romania Journal.

Mihai Păsculescu, president of the Employers’ Federation of Textiles, Garments and Leather, said: “From 160,000 jobs a year ago, only 120,000 remain now, after having dropped from 800,000 in 1990, and the number continues to fall due to the European directive on the introduction of the QR code.

“This requires producers to comply with traceability standards and to use sustainable raw materials, with at least 40% being recyclable materials.

“Over the past year, there have been very few orders, as everyone wanted to clear out their stocks, since you cannot put a QR code on old merchandise and sell it in the European Community.”

Romania’s textile industry ranked 7th in national export value, with $4.79 billion (£3.78bn) in exports and $6.22 billion (£4.91bn) in imports for 2023. Credit: OEC

Another major blow for companies is the suspension of the export promotion programme. This means companies can no longer participate in international trade fairs.

“In general, small firms, the subcontractors, have disappeared,” Păsculescu added.

“Large companies that exported 100% have survived, but even they have been affected by the euro exchange rate, because the truth is we sell euros at 6 lei while the state gives us 5 lei, so I don’t think we can hold on. Profit margins are no higher than 4-5%.”

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