Millions of Romanians have settled abroad. Money sent home exceeded foreign direct investment
More than 2.3 million Romanians settled abroad in the last two decades, according to a specialist study, which shows that money sent home in 2024 was 67% more than foreign direct investments.
Over 2.3 million Romanians have settled abroad in the last two decades. Archive photo
Emigration remains a defining phenomenon for Romania, marked by a significant loss of population and skilled labor, but recently counterbalanced by increasing immigration flows, according to an EY study that analyzed the evolution of emigration and immigration in Romania and its impact on the economy.
According to the research, Romania faces a dual reality: a massive emigration, which reduced the resident population by approximately 2.3 million inhabitants in the last two decades, but also an emerging immigration, which generated a net positive migratory balance between 2022 and 2024.
In Romania, emigration accelerated after 2008, affecting especially young people and skilled professionals in sectors such as IT, engineering and professional services. The main reasons include seeking better opportunities abroad, higher wages and better living conditions. In 2024, 229,180 people emigrated, an increase of 13% compared to 2022.
This loss created acute labor shortages, pressure on the pension and health systems, but also generated cash flows to Romania, which support not only the families of the emigrants, but also the economy in general, say the authors of the study. Unlike other Eastern European countries, such as Poland, which implement repatriation programs with financial incentives, housing and jobs, coherent reintegration policies have not yet been created and applied in Romania, although the importance of the diaspora (almost 6 million Romanians live outside the borders) is obviously recognized, EY specialists note. Comparatively, in Europe, emigration is part of a wider context of positive net migration, driven by population aging and labor demand.
The 5 strongest trends regarding emigration in Romania
The research analyzes the five strongest trends regarding emigration in Romania.
1. Maturation of the profile of emigrants
There is an increase in the share of emigrants aged between 40-59 and over 60, while the proportion of young people under 39 remains the majority. This indicates a structural change in the dynamics of emigration, with implications for the workforce and human capital in Romania.
2. Fewer young people willing to go abroad
Although young people under 39 continue to represent an important part of emigrants, their share is decreasing, which may reflect both changes in the existence of domestic opportunities and migratory preferences. However, the loss of this segment affects competitiveness and innovation in the economy.
Pensioners' rights, violated by some pension houses, including from abroad
3. Money sent home in 2024 was 67% more than foreign direct investment
Remittances sent by Romanians in the diaspora reached record levels of approximately USD 9.5 billion in 2024, exceeding foreign direct investment by 67%. These funds support consumption, household investment and entrepreneurial initiatives, being a vital source of external financing.
4. The return of emigrants and its potential
There is a trend of returning Romanians who have gone abroad, but their integration into the labor market is essential to prevent negative effects, such as the increase in unemployment. Successful models, such as the Polish one, show that financial, housing and professional support can stimulate this return.
5. Demographic pressure caused by emigration and the aging of the population
Emigration combined with an aging population is putting pressure on health and pension systems, reducing the active labor force base and affecting productivity and long-term economic sustainability.
According to the data from the study, in 2025, the population pyramid is almost inverted, the share of elderly people and pensioners has increased significantly. The average age of the resident population rose from 37 years in 2005 to 42 years in 2025. In just two decades, the base of the age pyramid narrowed, indicating a considerably lower birth rate compared to 2005. In parallel, the young and able-bodied segment, especially the population up to 40 years of age, decreased as a result of massive emigration to other states. This demographic structure puts increasing pressure on the health system, which is faced with the needs of an aging population, and puts a severe strain on the pension budget, which is becoming harder to support with a young workforce that is declining as a share of the total population. For the business environment in Romania, this demographic reality represents a huge risk through problems in the retention of the workforce, but especially through the difficulty of making the workforce more efficient.
“Romania, with a resident population decreasing to just over 19 million (on January 1, 2025, almost 0.2% less than the previous year), could benefit from this dynamic, turning emigration into opportunities through repatriation and strategic immigration. Reintegration programs with fiscal incentives, cooperation between businesses and authorities for integration, simplification of visas for digital nomads and strict recruitment controls to avoid legal risks are therefore required. better manage the connection with the diaspora and turn mobility into a competitive advantage”, it shows in the study.
Experts remind that Europe sees migration as an essential competitive advantage for countering the demographic crisis, which is why Romania should also accelerate the transition from a sending country to a receiving one, managing in a balanced way the challenges and opportunities of the emigration phenomenon.
