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Belarusians Boycott The ‘Model’ of Lukashenka

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Belarusians Boycott The ‘Model’ of Lukashenka

The number of people employed in the economy is declining.

The steady decline has been observed over the past decade.

The main reason is the ageing of the population. Its active phase expires in the mid-2020s. Another reason is the negative migration balance. As a result of a failed decade in terms of GDP and income growth rates, many Belarusians of working age leave for work in neighbouring countries. At the same time, strict migration legislation does not allow to compensate for this outflow by attracting labour immigrants, ekonomika.by writes.

In the 4th quarter of 2018, given seasonal factors, the number of employed decreased to 4332 thousand people. In the current decade, the number of employed people decreased by 343 thousand people or by 7%.

In the 4th quarter of 2018, given seasonal factors, the number of employed in the economy decreased by 0.02% as compared to the previous quarter. Positive employment growth was last recorded back in 2010 and early 2011 (except for a one-time spike in the first quarter of 2014).

For the last 9 years, if seasonally adjusted, the number of hired employees did not exceed the number of dismissed ones.

The main reason for the decline in employment in the Belarusian economy is the ageing of the population. Currently, Belarus is in the middle of a 20-year demographic transition, when more people retire than enter the labour market. In recent years, 130-140 thousand people retire annually. About 20% of them remain in the labour market and continue to work. At the same time, 90 thousand people enter the labour market.

Lack of investment and, as a result, insufficient job creation are other reasons for the decline. Given the low GDP level and its low growth rate, domestic sources of investment are not enough, and the preservation of the state form of ownership in the real and financial sectors do not contribute to the attraction of foreign investments and technologies.

Therefore, the economy is especially short of highly paid and productive jobs. Low wage differentiation in the context of the old Soviet pay system makes talented young people leave the country.

Recently, the regulation of the higher education system by the Ministry of Education, as well as the reduction of quotas for admission to universities for legal and economic professions, have also caused the outflow of young people from the country.

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