Labor market dynamics and the evolution of the minimum wage in Romania (2020-2025): A statistical and contextual analysis

Abstract

This article analyzes the evolution of the main labor market indicators and minimum wage policies in Romania during the period 2020-2025, providing a statistical and contextual picture of them. The methodology used involved the analysis of two primary data sets, complemented by external economic reports, in order to perform a descriptive and comparative analysis. The findings reveal a steady increase in the nominal gross minimum wage, often accompanied by a complex, non-linear trend in the total number of employees at the minimum wage, suggesting a wage spillover effect. Employment data indicate a general increase in the number of contracts, with persistent gender disparities and a clear preference for permanent contracts. The period under review is marked by the post-COVID-19 recovery, significant inflationary pressures and government interventions aimed at economic stabilisation and social inclusion. The analysis suggests a dynamic labour market, adapting to economic shocks and policy changes, with implications for wage competitiveness, regional disparities and the continued need for structural reforms to address skills shortages, labour market rigidities and the informal economy.