USD 500 monthly wage is unlikely in 2017 in Belarus due to economic slowdown
According to Belstat, in February 2017, the average wage in Belarus totalled USD 378 and increased by USD 8 as compared with January. In national currency, wages have decreased in February, as compared with January, for the first time in the last six years due to negative trends in the economy and the decline in GDP by 1% in February 2017 as compared with February 2016. Amid statements about the need to employ all unemployed citizens, employment in the economy is likely to increase, state enterprises are likely to increase part-time employment by temporarily hiring unemployed, many enterprises are likely to reduce working days, hence the average wage would increase, but unlikely to reach USD 500 in 2017. The state has limited financial resources to inflate the economy and increase people’s incomes. The existing economic model is incapable of overcoming the recession, which means, wages are unlikely to grow.
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.