‘Economic recovery’ in March implies real wage growth
In March 2014, real wages grew to USD 586 per month - the first recorded growth since 2014. In April, due to increments in the tariff rate of the first discharge as of April 1st, average wages are expected to continue to grow, including the salaries of public officials and public sector employees. As a result, the staff outflow from the social sphere will slow down, the retail trade turnover will increase, and enterprises’ costs will escalate. In addition, domestic prices will go up in order to remove excess income from the economy.
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.