Real wages in national currency in 2016 may exceed 2015-level
According to the National Statistics Committee, gross salary in Belarus in July reached BYR 745.8 or 94.7% of that in July 2015. Real wages reduced due to high inflation rate and restricted wage growth in most economic sectors. In the coming months, wages are likely to grow smoothly, which should improve the retail sale situation. The population will be the net seller of foreign currency in order to preserve current consumption levels. Starting from August 2015, wages were falling, which created a low comparative base for 2016. Hence, real wages, adjusted for inflation, may exceed those in 2015 by October-November 2016.
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.