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 RUSSIA IN FACTS
13 February 2003 12:08
Russian capital's unemployment lowest in world, but national skills shortage looms
Unemployment, public income and reform of the system of payment for public sector workers were the main subjects for the government meeting today. The cabinet approved a blueprint policy for the labour market for the next three years. All the details from Aleksandr Ruvinskiy. [Correspondent] The government sitting approved a blueprint for action on the labour market, noting that over the past three years there has been an increase in the number of employed in the country, with unemployment falling for four years now. At present there are a total of 5m not in employment, while the unemployed - those appropriately registered and in receipt of benefits - number some 1.5m. At a news conference, Labour Minister Aleksandr Pochinok noted these important elements: [Pochinok] The proportion of the population not in employment in the Russian economy is falling. We plan for 92.6-92.8 per cent of the active population of Russia to be in work by 2005. This is a very high figure. We have marked some mini-records, for example, Moscow is the capital city with the lowest level of unemployment in the world at the moment. In the country as a whole, there are more vacancies than unemployed. I can therefore say to you that in principle the situation is indeed not at all bad. At the same time, there are some very serious problems lying behind the positive nature of the changes which we are now looking at and have to resolve. First and foremost these are the residue of old problems. Through the 1990s there was a drastic change in the structure of the Russian labour market. The number of enterprises fell in the military-industrial complex, their capacities dropped and new industries emerged and we can now see that there is no correlation between trained people with higher, further and professional education and vacancies. This is why the prime minister has issued instructions for a detailed nationwide balance sheet of labour resources and the training of labour resources to be drawn up. It is already clear that we have over-production of some specialists. For example, there is an excess of international economists and general managers. We expect to have an over-supply of higher education graduates. For the first time ever Russia has a labour shortage, first and foremost skilled workers. This is a long-term shortage, for years to come. This is why we must now pay particular attention to skills training. We're running out of good construction workers, of lathe operators and fitters. It is hard to find these people. And the system is producing very few new specialists now. We need to produce more and more. [Presenter] The approved blueprint is now an integral part of the medium-term programme for the country's socio-economic development. This will be discussed at the next government meeting.
[Radio Mayak]
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