Belarus’ mechanical engineering production continues to fall
According to the National Statistics Committee, in April 2014 manufacturers of vehicles, machines and equipment reduced their production volume by more than 20 %, compared to April 2013.
Such a decrease is evidencing that crisis is building-up at Belarus’ largest machine-building enterprises. Engineering enterprises require additional government loans. In addition, stocks at the machine-building enterprises are expected to grow in order to keep up with the planned production volumes, as well as state programmes will be expanded to sell machinery equipment at a discount. The implemented measures will hardly save workers from mass lay-offs and shorter working week. Until enterprises receive financial assistance, they will experience problems with settlements with their counterparties, so as the industry is loss making.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.