Job cuts in economy are expected in 2014
In accordance with the governmental forecast, workforce reduction by 70 thousand is expected in enterprises in 2014. The fact of the excessive number of staff is confirmed by the executives of enterprises themselves.
The figures of proposed job cuts will not be reached for two reasons. The idea is to create 47 thousand new high-performing jobs for dismissed employees, which is unfeasible. And the upcoming presidential campaign in 2015, whereby the escalation of social tensions in society is unacceptable, will serve as a deterrent. Jobs will be cut only in extreme cases (economic insolvency). The alternative option will be less noticeable incremental reduction in the number of staff under the pretext of the growth of wages of remaining employees of the enterprise.
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.