Vladimir Shlyomin

T

he Government of the Russian Federation adopted the ”Concept of Actions on the Labor Market for the Period of 2003 to 2005” worked out by the Ministry of Labor and a number of federal bodies. ”When planning and implementing measures that have an impact on development of the labor market” executive agencies of all levels should be guided by this document. As its authors point out, the concept is directed at upgrading the system of managing the sphere of employment, creating conditions to reduce unemployment and providing social support for the unemployed.
These problems are extremely pressing for Russia of the 21st century. The country’s modern labor market was formed in the years of the economy’s perestroika (restructuring) and it has not yet recovered from aftereffects of the social and economic crisis of the 1990s, which brought about a slump in the industrial and agricultural sectors of the economy and a growth of official and unregistered unemployment. For example, as Russia’ GDP fell down by 42.5 % between 1990 and 1998, the number of employed persons decreased from 75.3 million to 63.6 million people, or by 15.3 %. The biggest reduction took place in the industry with 8.6 million people losing their jobs. The total share of those working in the national economy dropped from 30.3 % to 22.2 %.
This time the working force potential is becoming one of the determining factors of the country’s economic development. Especially so, since the level of productivity in Russia is still 3 times lower than the one in other developed countries. It affects indexes of economic growth, results in the low level of labor payments, undermines the competitiveness of Russian products as well as weakens the Russian economy’s investment potential that hinders the necessary introduction of advanced technologies.
The very fact that such a concept has emerged should have proved the determination of authorities to start solving these vital problems. However, other tendencies can also be tracked down.
Two months earlier the Federal Law "On making changes and addenda to the Law of the Russian Federation "On employment of the population of the Russian Federation and some legal acts of the Russian Federation on financing measures to promote employment of the population" has come into force. It revises 29 of 39 provisions of the previous Law and abounds in new articles, which, in the opinion of some analysts, contradict the idea of forming the civilized market of Russia’s human resources and the doctrine of social partnership.
The essence of the innovations is in reducing expenses on social protection of citizens, who lost jobs and who are registered as unemployed. For example, the Employment Fund, which until now was formed mainly through mandatory insurance contributions by employers, should, from now on, be replenished from the federal budget, as well as budgets of the Russian Federation’s subjects and local budgets. Now an employer is not obliged to participate in the financial support of his employees being fired. So, it is not surprising that Chelyabenergo JSC, which last year already cut down its personnel by 700 people, immediately announced the dismissal of another 4,000 workers, or almost one fourth of the company’s employees.
The new version of the Law cancels additional payments to the unemployed for supporting the old, disabled and children, i.e. for all those, who do not have their own means for existence. The unemployed, who lost the right for unemployment compensation due the expiration of its payment, are also deprived now of subsidies for using preschool institutions, dwellings, communal services, public transportation, health care services and public catering.
So, the latest legal innovations do not prove yet a genuine desire of authorities to realize principles, which are proclaimed in the "Concept of Actions on the Labor Market for the Period of 2003 to 2005".