Youth Under Inflation: How Rising Prices Impact Gen Z in Romania and Moldova

With the steady rise in living costs across Eastern Europe, inflation has transformed from a macroeconomic issue into a personal burden for young people in Romania and Moldova. From energy bills and groceries to education and employment prospects, members of Gen Z are grappling with an increasingly unpredictable financial environment. This article investigates both immediate and medium-term effects, highlights critical facts, introduces notable firsthand voices, and concludes with expert insights.

1. Surging Expenses and Shrinking Purchasing Power

• In Romania, average annual inflation reached approximately 5.6% in 2024, with food costs accounting for over a quarter of a young household’s budget.

• In Moldova, inflation rose from around 4–5% in 2024 to 8–9% in early 2025, driven by price hikes in energy, utilities, and essential goods.

• The result? Romanian youths often spend nearly one-third of their income on rent and food, while Kuzmin's research reveals Moldovan youngsters frequently grapple with incomes that no longer cover basic living expenses.

2. Education and Skill Development Under Pressure

• School supply costs in Romania have soared—bulky fees for textbooks, stationery, and transport burden families. A rural student laments: “I received a backpack full of supplies, but schools still don’t get updated textbooks.”

• In Moldova, nearly 29% of young people aged 15–29 are classified as NEET (not in employment, education, or training), significantly above the EU average. High living costs and commuting prices are cited as key barriers.

• Young Moldovans describe navigating a challenging cycle: high household expenses, limited academic resources, and constrained career paths, all exacerbated by inflation.

3. Youth Unemployment, Migration, and Demographic Strain

• Romania faces a youth unemployment rate of around 22–31% for those aged 15–24.

• In Moldova, about 24% of people aged 15–29 live and work abroad, citing the domestic labor market as insufficient.

• As a result, remittances make up a quarter of Moldova’s GDP, while local communities suffer from “brain drain,” demographic stress, and reduced support systems for older generations.

4. Mental Health and Social Disillusionment

• Over 50% of Moldovan youths report frequent anxiety, stress, or depression—levels notably higher than peer countries.

• Many youths describe living in a state of "quiet desperation": delaying life milestones like starting families, acquiring homes, or pursuing passions due to financial insecurity.

• Access to mental health services remains deeply insufficient, reinforcing stigmas and hindering societal conversations around psychological well‑being.

5. Coping Strategies and Support Initiatives

• In Moldova, UNICEF-backed NGOs are stepping in with financial aid, meal programs, and psychological support for vulnerable youth.

• In Romania, EU-funded ESF+ projects offer training and job placements, though uptake has lagged amid complex bureaucracy.

• A young vocational student in Chișinău summarizes: “We want meaningful jobs here, but prices rise faster than wages. Smart programs could change that—but where are they?”

6. Eye‑Opening Stats

• Moldova’s 29% NEET rate stands as one of Europe’s highest.

• In August 2022, Moldovan food inflation hit 38%, underscoring vulnerability to global shocks.

• Romanian youth say a “fair” salary should range between €600 and €1,400, yet 86% believe pay matters more than job function.

• Remittances from young Moldovans abroad represent 25% of national economic inflow—crucial, yet symptomatic of deeper issues.

7. Voices from the Field

• Romanian economist: “Ongoing inflation restricts youth potential and sows seeds of mistrust in the future.”

• Moldovan NGO activist: “Rural youth are the hardest hit—without tangible support, they’re left behind before even starting.”

• Local fintech startup: “We see digital opportunities growing, but scaling struggles against outdated systems and small-market limitations.”

8. Conclusion

Inflation is reshaping the lives of Gen Z in Romania and Moldova. It weakens economic resilience, limits access to education, diminishes mental health, and accelerates migration, further skewing demographics. To safeguard the generation’s future, governments and international partners must enhance youth-oriented social programs, simplify EU funding access, and foster local job markets. Without decisive action, this wave of price hikes risks stunting the formative potential of an entire generation.