Belarusian industry to downsize workforce in 2015

Category status:
April 22, 2016 19:12

Amid recession on the Russian market, lay-offs have become a major requirement for the survival of the domestic enterprises in 2015. In late March, official unemployment rate in Belarus reached 0.9%, a 73% increase compared with 2014. If Belarus wants to preserve the competitiveness of Belarusian produces, lay-offs should take a faster pace.

According to the Ministry of Labour and Social Protection, in late March, Belarus counted 39000 officially unemployed, which is 8.6% more compared with late February 2015. Over the past 12 months, the unemployment rate increased by 0.4%, while the number of unemployed – by 73%. In some Belarusian regions the unemployment has reached 1.7%. Official unemployment figures are 5-6 times lower as compared with the results of a sample survey of household held by the National Statistics Committee. It should be mentioned that unemployment benefits are extremely low – USD 14.5 per month in March 2015 and in order to receive it, one has to commit to community service.

Unemployment rates grow mainly due to lay-offs in the industry. In March 2015, 8000 industry workers lost their jobs. About 70,000 employees are working part-time. Industrial enterprises, in particular in machine-building, face problems with marketing of products on the Russian market and have to consider labour cuts. The World Bank estimates the excessive number of employees at state-owned enterprises at 10% of the current labour force. For instance, in late 2014 Belaruskali employed 18,000 people and Russian Uralkali – 11,000.

Allocations for wages and social needs account for about one-quarter in the economy cost structure. Downsizing is one of the few available ways for companies to reduce costs significantly. Some industrial enterprises have been ordered to downsize employees in 2015. For instance, one of the leading rubber producers in Belarus should be downsized by 850 people by the year-end.

The rise in unemployment is a consequence of economic problems in Belarus. All in all, by late 2015 70,000 – 80,000 industry workers may lose their jobs.

Similar articles

Belarusian and Ukrainian Defence Ministries entangle in confrontation spiral
October 02, 2017 11:57
Фото: RFRM

Over the past year, military-political relations between Minsk and Kyiv have become complicated. Due to their high inertia and peculiarities, this downward trend would be extremely difficult to overcome.

The root cause of the crisis is the absence of a common political agenda in the Belarusian-Ukrainian relations. Minsk is looking for a market for Belarusian exports in Ukraine and offers its services as a negotiation platform for the settlement of the Russo-Ukrainian war, thereby hoping to avoid political issues in the dialogue with Kiev. Meanwhile, Ukraine is hoping for political support from Minsk in the confrontation with Moscow. In addition, Ukraine’s integration with NATO presupposes her common position with the Alliance in relation to Belarus. The NATO leadership regards the Belarusian Armed Forces as an integral part of the Russian military machine in the western strategic front (the Baltic states and Poland). In addition, the ongoing military reform in Ukraine envisages a reduction in the number of generals and the domestic political struggle makes some Ukrainian top military leaders targets in politically motivated attacks.

Hence, the criticism of Belarus coming from Ukrainian military leadership is dictated primarily by internal and external political considerations, as well as by the need to protect the interests of generals, and only then by facts.

For instance, initially, the Ukrainian military leadership made statements about 100,000 Russian servicemen allegedly taking part in the Russo-Belarusian military drill West-2017. Then the exercises were labelled quazi-open and military observers from Ukraine refused to provide their assessment, which caused a negative reaction in Minsk. Further, without citing specific facts, it was stated that Russia was building up its military presence in Belarus.

Apparently, the Belarusian and Ukrainian Defence Ministries have entangled in a confrontational spiral (on the level of rhetoric). Moreover, only a small part of the overly hidden process has been disclosed. That said, third states are very likely to take advantage of the situation (or have already done so). This is not only about Russia.

The Belarusian Defence Ministry officials are restrained in assessing their Ukrainian counterparts. However, such a restraint is not enough. Current military-political relations between Belarus and Ukraine are unlikely to stabilise without the intervention of both presidents.

Recent trends

cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china