Survey: Foreign investors in Romania struggle to find talent amid mounting uncertainty worldwide
<p>A report from business consultancy firm Kearney suggests that investors in Romania cite the talent of the labor pool and ease of doing business as top reasons for coming to the country, but say that there is a mismatch between demand and supply of labor and skills.&nbsp;</p>
<p>The issue impacting Romania stems from the education system, but comes at a difficult time, according to the Kearney Foreign Direct Investment Confidence Index, or FDICI, a survey of investor sentiment regarding future (three-year) FDI flows.</p>
<p>The 27th edition of the report, meant to provide a snapshot of investor sentiments, shows profound developments, particularly an expected rise in commodity prices. Around 38% of those surveyed see this as a likely occurrence in the next year. The uptick is perhaps explained by investor fears of increased global conflict and subsequent supply chain disruptions that could drive commodity prices up.</p>
<p>Another 35% of investors cite an increase in geopolitical tensions as a likely development in 2025, up 7% from last year.&nbsp;The third overall development a more restrictive business regulatory environment in a developed market, signaled by 32% of those surveyed, followed by a more restrictive business regulatory environment in an emerging market and political instability in a developed market, both at 26%.</p>
<p>Romania’s downgraded country rating and political uncertainty brought its index score down by 30% versus last year, putting it 21st out of the 25 countries included in the Emerging Markets FDI Confidence Index, a net drop of 2 positions.</p>
<p>“Investors planning to invest in Romania still cite the talent/skill of the labor pool and ease of doing business as the top reasons for investing in the market. However, companies are finding it more and more difficult to identify the right talent due to increasing mismatches between the demand and supply of labor and skills," said&nbsp;Alexandra Velescu, Head of Kearney Romania.</p>
<p>"Without adapting the education system to the needs of the labor market and focus on upskilling / reskilling of the labor force, Romania risks losing its competitive advantage and positioning as “value for money” market,” she added.</p>
<p>Developed markets continue to dominate the rankings, making up 19 of the top 25 markets. The United States takes the top ranking on the world rankings, with a plurality of investors of 45% citing its technological innovation as the strongest reason they would choose to invest there. Canada retains the 2nd position and remains one of the top five markets for the 13th year in a row.</p>
<p>The United Kingdom and Germany lead the way in Europe, holding 3rd and 5th place, respectively. In Asia, Japan’s performance improves with a jump from 7th to 4th, and China slips from 3rd to 6th.&nbsp;</p>
<p>“Across all markets, investors continue to highlight the importance of efficiency of legal and regulatory processes, domestic economic performance, and technology and innovation capabilities as the primary factors driving their investment decisions,” said Erik R. Peterson, partner and managing director of Global Business Policy Council.</p>
<p>Meanwhile, Europe-based investors remain comparatively more pessimistic. Europe still boasts foundational strengths that appeal most to investors, including strong institutions, trusted legal and regulatory processes, and a highly educated workforce.&nbsp;</p>
<p>Nevertheless, immigration challenges, economic stagnation, and expansion of the conflict in Ukraine remain significant areas of concern. Furthermore, there are significant differences in perceptions of the EU across regions. Europe-based investors are generally more pessimistic about the EU’s position on the world stage compared to Americas and Asia Pacific counterparts in assessing issues related to competitiveness and economic and military power.</p>
<p>The 2025 Kearney FDI Confidence Index is constructed using primary data from a proprietary survey of 536 senior executives of the world’s leading corporations. The survey was conducted in January 2025.</p>
<p><em><a href="mailto:radu@romania-insider.com">radu@romania-insider.com</a></em></p>
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