Labor resources of the Republic of Belarus

The impact of the demographic factors mentioned above is manifested today in the deterioration of the reproductive basis for the formation of young generations of the labor force, the increased intensity of external labor migration. Structural transformations of the transition period lead to underutilization of the formed labor potential of the country, new trends in the redistribution of labor, the development of new types of activities, and the demand for new professions. Therefore, the current system of formation, distribution and use of labor resources in Belarus is characterized by such trends as a decrease in the level of employment, an increase in partial and complete unemployment; large losses in the labor potential of rural areas; a decrease in the reproduction potential and opportunities for the renewal of the labor force. And although the Republic of Belarus as a whole has sufficient labor potential, overcoming negative trends is complicated by the following factors:

disproportions in distribution (village – city; between regions and sectors of the national economy); insufficient level of professional education according to modern requirements.

All this forces a new assessment of the labor balance of the republic, in order to lay the foundations for the formation of a labor market that meets the requirements of the time.

The labor market as an economic category is a set of production relations between workers (owners of labor), the employer and the state due to the realization of citizens’ rights to work. Human resources act as a resource base for ensuring sustainable development. The number of labor resources in 2002 reached 6.1 million people, or 61.6% of the country’s population. The adaptation of the economy to market relations is accompanied by a decrease in demand for labor with an increase in its supply in the labor market. The number of people working in the economy has decreased to
4380.8 thousand people, which was 85% of the 1990 level However, the employment rate remains quite high and amounts to 73.7% of the able-bodied population, while in Sweden – 71, Russia – 66, Ukraine – 64, Germany – 63, Poland – 62%. The development of the labor market of Belarus in the late 80s – the first half of the 90s was most influenced by factors due to the severe political and socio-economic crisis. It caused an absolute reduction in jobs. During the period 1988-2003, the number of people employed in the economy of the republic decreased from 5.2 to 4.4 million people (Tables 5.7, 5.8).

Table 5.7 Resource requirements by component

Dynamics of quantitative and qualitative composition

of labor resources of Belarus, [2, p.128; 8, p.75]

The number of economically active population decreased from 1990 to 2002 by 630 thousand people (Table 5.9) with an almost unchanged population. This indicates a large scale of labor emigration and the shadow sector.

The decline in employment in the national economy was due to its significant reduction in material production, where in 2001 in comparison with 1994 the number of employees decreased by 497 thousand people.

Since 1988, there have been positive changes in the non-production sphere. It was possible not only to stabilize the outflow of personnel from production, but also to ensure the growth of the overall level of employment.

Table 5.8 Resource requirements by component

Dynamics of structure and number of employees by spheres
economy of Belarus, [2, p.129; 8, p.78]

Table 5.9 Resource requirements by component

Economically active population, employed and unemployed

in the Republic of Belarus in 1990–2003, million people, [8, p.75]

At the present stage, the state policy is mainly aimed at preserving human resources and maintaining employment as much as possible, which causes a consistently low level of registered unemployment compared to other countries with economies in transition – 3.1% of the economically active population at the end of 2003 (in Poland – 16.1, Latvia – 9.2, Lithuania – 6.4%).

The main problems in the field of employment are: the content of an excessive number of personnel, an irrational sectoral structure and an imbalance in the supply and demand of labor in terms of professional qualification components; and increased informal employment and unregistered unemployment. In some industries, with the formal sufficiency of personnel, it is impossible to ensure their professional rivalry through rotation. Thus, in science, higher education and government bodies, many specialists occupy their positions for decades, not being able (and not wanting) to change their place of work, place of residence and enrich themselves with new experience on a competitive basis. The creation of a single employment space between the Union State of the Republic of Belarus and the Russian Federation would help in this.

The strategic goal of state policy in the labor market is to ensure freely chosen, productive employment and create conditions for a more rational use of the labor potential of society in accordance with the professional capabilities of each person. Improving labor efficiency should be accompanied by a reduction in excess employment in production.

In the long term, the formation of labor potential will occur under the influence of the growth of the able-bodied population until 2006 and its absolute reduction in the subsequent period. This will lead to an increase in the number of labor resources to 6193 thousand people in 2005, which will then be replaced by a tendency to reduce them – up to 6064 thousand people in 2010 and
5301 thousand people in 2020

In the coming years, the number of people employed in the economy may decrease to 4210 thousand people The unemployment rate by the end of 2005 may increase to 3.7-3.8% of the economically active population.

In 2006-2010, taking into account the intensification of the structural restructuring of the economy, a more active release is expected.
the existence of workers from social production. The number of people employed in the economy may decrease to 2010
4125 thousand people In the structure of employment, there will be a reorientation to non-productive sectors of the economy due to the creation of small enterprises and the expansion of individual entrepreneurship in the service sector, where the share of employees will increase to 58%. A decrease in the level of employment is expected in the context of a decrease in the number of labor resources. As a result, the unemployment rate will fall to 3.0–3.5% by the end of 2010.

The main goal of state policy during this period will be the implementation of a system of measures to achieve effective employment.

The employment policy in 2011-2020 should be aimed at achieving the most complete balance of labor supply and demand, improving the quality and competitiveness of the country’s labor potential. According to the forecast, the number of people employed in the economy by 2020 will decrease to
3865 thousand people The policy of priority development of social sectors and reorientation of the economy to knowledge-intensive production will contribute to a gradual transition to a post-industrial model of employment. The share of people working in the service sector, according to calculations, will increase to 64%.

The sectoral structure of employment in Belarus today is characterized by a fairly high proportion of workers in the material sphere. In comparison with developed countries (Belgium, USA, France), where the share of employment in this field of activity is about 40%, in Belarus it reaches 67.0%. Some scientists consider the decline in employment in this area that has emerged in recent years as a positive trend. But for the conditions of Belarus, this point of view seems controversial due to the low labor productivity in the sphere of production, as well as the need to increase the production of export products. In the meantime, the growth of employment in the non-productive sphere does not fully compensate for the retirement of labor from material production (Table 5.10).

Table 5.10 Resource requirements

Distribution of employed population by sectors of Belarus,%

in 1990, 1995 and 2003.

The development of the market sector of the economy, the transition to various forms of ownership, the development of private entrepreneurship led to the redistribution of labor resources between the state and non-state sectors of the economy. The number of employees in state-owned enterprises decreased and increased at the facilities of other forms of management (joint-stock, lease, private, mixed enterprises). The share of workers and employees of state enterprises and organizations in the structure of employment in the national economy amounted to 55% as of 1.01.2002 (Table 5.11).

Table 5.11 Resource requirements

Employment by forms of ownership in the Republic of Belarus

in 1990 and 2003,%

The Republic of Belarus in figures. 2004. Brief statistical collection of the Ministry of Statistics of the Republic of Belarus. – Mn., 2004. p. 77.

Some industries are more attractive to the mo-
Other industries employ a significant number of people older than working age. Thus, the largest share of young people among the working takes place in the sphere of circulation and in the field of finance and credit (Table 5.12). The first of these requires motivated, proactive and mobile workers who are able to carry heavy loads. The second is well-trained, ambitious employees. The largest proportion of older persons occurs in education. This sphere is little prestigious and poorly paid and generally unattractive for young people. The social order does not require highly educated people due to the general primitivization of social life.

Table 5.12 Resource requirements

Proportion of young people and persons over working age

in the number of people employed in the national economy of Belarus

(end of 2000), %

Crisis phenomena in the economy of the late 80s – the first half of the 90s led to a significant increase in unemployment. As of 1.01.2001 the unemployment rate in the republic was 1.7% of the working-age population. In relation to the economically active population, it was kept in the 90s. at the level of 2.1%. At the same time, there was a differentiation of regions in terms of the degree of tension in the labor market (Table 5.13).

Table 5.13 Resource requirements

Unemployment rate in Belarus by regions*

*See paras. [4, p.5]

In a number of cities and districts, the unemployment rate significantly exceeded the average for the republic: in Svetlogorsk district – 3.9% of the able-bodied population of working age, in Postavy and Gantsevichi – 3.4%; in Soligorsk – 3.3%; in Kalinkovichi – 3.0% (Table 5.14).

Table 5.14 Resource requirements

Regions of Belarus with persistently high unemployment*

*See paras. [4, p. 6]

This situation was due, first of all, to the monostructural specialization of the economies of these regions, where the main industry had a much larger decline in production. In addition, such regions as Gantsevichi, Postavy, Kalinkovichi were the places of former deployments of military units, so there were no other enterprises and organizations in them that could employ the surplus of labor that had formed.

Solving the issues of ensuring the employment of the unemployed is currently hampered by their low educational level (Table 5.15). Moreover, unemployed women have a higher level of education than men: 25.6 per cent have higher and secondary specialized education; 62.9% are general secondary, and only 11.5% do not have a complete secondary education. Male: 16.8%; 64,5%; 18.7%, respectively. And yet the average unemployed person is a woman with secondary general education at the age of 30.6 years (Table 5.16).

Table 5.15 Resource requirements

Composition of the unemployed in Belarus by level of education*

*See paras. [4, p.7].

Table 5.16 Resource requirements

Composition of unemployed in Belarus by sex, thousand people*

*See paras. [4, p.8].

Youth unemployment remains a rather acute problem, which is largely due to the entry into the working age of those born in 1983-1984, when the birth rate was relatively high. In 2000, the number of school leavers registered as unemployed increased by 16.9 per cent.

The level of education of labor resources in the Republic of Belarus is far ahead of the average level of the CIS, but lags behind such countries as Japan and the United States. 5.17.

Table 5.17 Resource requirements

Level of education of employees in the Republic of Belarus,%

Note. In Japan, the share of people employed with higher education is 60%, in the USA – 27%, in the CIS – 13%.

The share of employed people with higher education is relatively large in the field of management and science (up to 60%), education (48%), finance and credit (37%). This share is relatively low in agriculture (6%), in industry, transport and housing and communal services (9–11%), which is clearly not enough. As for workers with secondary specialized education, they are not enough in agriculture and transport (there are about 15%). But in the same industries, the proportion of people with secondary general education (60% and above) is too large.

It can be considered that in connection with the reform of the education system, the status of secondary specialized education was lowered and uncertain. Therefore, many school graduates prefer to receive higher education, which is not particularly difficult at paid departments of correspondence education. However, from the point of view of the state, it is more expedient to have a smaller number of persons with diplomas of higher education, but a better quality of training.

The main demand for labor is represented by enterprises, institutions, organizations of the state form of ownership (66.5% of the total need for personnel), about 30% of vacancies are declared by employers of the collective form of ownership, their share in the total structure of demand increased from 25.8% to 28.5%. 5.18.

The industry structure of vacancies has not changed much yet. The main demand for labor is still formed by branches of material production: industry, agriculture and construction (Table 5.19). True, if earlier in the structure of demand the dominant industry was industry, then at the beginning of 2000 the greatest need for labor was declared by agriculture. The number of vacancies declared by the transport industry decreased significantly – by 37.2%, housing and communal services – by 31.8%, construction organizations – by 27.3%, industry – by 21.6%. The demand for health care workers increased by 17.5% and the consumer services sector by 10.3%.

Table 5.18 Resource requirements

Demand for labor by forms of ownership*

*See paras. [4, p.13].

Table 5.19 Resource requirements

Demand for labor by sectors of the national economy

Belarus*

*See paras. [4, p.14].

In 2000, the employment intensity rate was conditionally two unemployed per vacancy. As of the beginning of 2002, the supply of labor in the republic as a whole exceeded the demand by 3.2 times (in 2001 – by 2.4 times) (Table 5.20). The most labor-surplus labor market was observed in the Vitebsk region, where the burden of unemployed per 1 vacancy was 4.2 people, as well as in the Gomel, Grodno and Mogilev regions – more than 3 people. In the structure of demand, the preponderance of working professions remains. The composition of the unemployed on a social basis remains the same: 68.0% – workers and 32% – specialists and other employees. This indicates that there are two problems in the labor market at the same time – unemployment and a shortage of personnel. This imbalance between the supply and demand of labour exists in a number of professions and specialties, in the territorial location of vacancies and in the place of residence of the unemployed; there are also significant differences in labour market conditions for men and women.

In general, in the republic there is a significant unmet demand for adjusters of numerical program control machines (CNC), workers in the construction industries (bricklayers, excavator and bulldozer operators, carpenters, concrete workers), turners, plumbers, electricians, programmers.

Table 5.20 Resource requirements

Demand and supply of labor in Belarus, [2, p.141]

Among specialists and other employees, doctors are most in demand, the demand for which is 5 times higher than the number of unemployed who have such a profession. Redundant in the labor market are workers who have the profession of a driver, cook, seller, cutter, seamstress.

The surplus of employees is significant in such specialties as accountant, economist, technician-technologist, lawyer. This is due to the fact that, for example, the profession of an accountant can be obtained only in Minsk in 8 universities out of 21. This profession is redundant not only in cities, but also in rural areas, especially in the Brest and Grodno regions. It should be noted that approximately every 5th unemployed person did not have any specialty, and the demand for unskilled labor in the labor market is insignificant.

Agriculture also has a need for workers. Especially significant is the shortage of machine operators, electricians, blacksmiths, machine milking operators, livestock breeders, veterinarians, agronomists, which is due to heavy loads and low wages.

Given that the territories within the republic differ significantly in their economic structure, the patterns of formation of labor supply and demand also have a regional character. For example, if in the regions of the republic the number of workers with the profession of a driver is excessive, then in Minsk there is a shortage of them; if the need for electricians takes place in Vitebsk, Grodno regions and in Minsk, then in other regions of the republic there is an excess of them; if in general there is a shortage of masons, carpenters, concrete workers in the labor market of the republic, then in the Brest and Vitebsk regions their number is excessive.

So, the dynamics of employment in the Republic of Belarus has the following features:

The share and number of people employed in the manufacturing sector are decreasing, while in the non-production sphere it is growing. The growth of employment in the non-productive sphere does not compensate for the release of those employed in the production sphere. The fall in employment in the productive sector is more a consequence of the fall in output and the level of investment, and to a lesser extent the result of an increase in labour productivity. The growth in the number of people employed in the sphere of circulation characterizes, in particular, the hypertrophied development of intermediary structures, as well as inefficient forms of trade (for example, large clothing markets). The growth in the number of people employed in the non-manufacturing sector is due, in our opinion, to the following reasons: in housing and communal services and healthcare: the low level of organization of the industry; in the field of finance and credit: low labor productivity, unjustified spread of banking operations where they can be dispensed with, low qualifications of workers; in the field of higher education: the expansion of the commercial sector, which pursues the goal of making a profit and, as a rule, is not able to provide an acceptable quality of education, does not focus on the needs of the national economy. The growth in the number of workers with higher and secondary specialized education in industries whose training does not always correspond to the profile of the work performed, and the level of training does not correspond to higher education. The number of students of legal and economic specialties exceeds the needs of the national economy.

To solve the problems arising in the labour market, a State employment programme for the population of the Republic of Belarus has been developed. It is aimed at:

the formation of an effective system for creating new jobs (in 2000, 4955 jobs were created using the state employment fund, of which every fourth – in the field of small business and every ninth – in agriculture); more active work on the organization of entrepreneurial activity among the unemployed (in 2000, funds were allocated from the State Employment Fund to organize their own business to 1572 unemployed (of which 58.5% were women), which is 2 times more than in 1999); attracting labor to rural areas. Resettlement was carried out mainly in the direction of city – village (52%), village – village (45%); the share of IDPs in the direction of the city – the city is insignificant – 2.2%, even lower is the migration in the direction of the village – the city – 0.7% [4, pp.24, 26]. The State Employment Service took measures to attract labor resources to the agro-industrial complex from outside the republic. Such experience exists in Vitebsk and Mogilev regions; vocational training and retraining of the unemployed, taking into account the requirements of the labour market. In 2000 alone, 50% of all unemployed (26.7 thousand people) received their first profession (specialty), 43% underwent retraining in new professions and 7% improved their qualifications [4, p.28]; providing material support to unemployed citizens by paying them unemployment assistance in accordance with the Law of the Republic of Belarus “On Employment of the Population of the Republic of Belarus”.

Thus, modern socio-economic processes, combined with the unfavorable environmental and demographic situation in Belarus, have exacerbated the problems of labor resources. In the new conditions, the republic should focus on labor-saving technologies. But in order to achieve a high level of employment of the population, it is necessary to create conditions for the socio-professional mobility of the labor force; to achieve a quantitative and qualitative balance between the supply and demand of labor and jobs in the labor market.