There's personnel crisis in Belarus. How bad is it?

What is the personnel situation in Belarus? /

What is the personnel situation in Belarus? / /

In the last two months, another 10 thousand jobs in Belarus were "vacated". As of May 1, 2024, there were already 145 thousand of them. The shortage of personnel is getting worse, and officials are unable to correct the situation.

At the same time, the Minister of Economy boasts that the average salary in Belarus is growing regularly and that the Belarusian population is "inclined to spend". Does this mean that it's not all bad? Euroradio asked BEROC senior researcher Anastasia Luzgina for comment.

Raising wages to keep workers

The economist notes that the lack of personnel certainly hinders the development of the economy. There are not enough workers, which is why potential GDP growth rates are decreasing.

"In addition, in 2023 and 2024 it was noticeable that companies were constantly increasing the salaries of their employees. According to data for the first quarter of this year, household incomes in real terms, taking into account inflation, grew by 9.1% compared to the same period last year.

Wage growth is even higher. But as wages rise, so do the costs of companies, which are prohibited from raising prices due to strict regulation, which severely hurts their financial performance. The question is how long this can continue as profits fall and the losses of unprofitable companies rise".

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