2014 salary growth offset by inflation
In December 2014, the average monthly salary in Belarus was BYR 6,806,000 (approx. $547) which is 16.2% higher than in December 2013. The yearly total rate of inflation of 16.2% means that real salaries in Belarus did not grow in 2014. Most likely, a further fall in household income can be expected due to the devaluation of rouble and a larger proportion of paid services in the consumer goods basket. Higher import prices will mean that consumers start demanding more domestically produced goods and the level of savings will fall. Unlike during previous post-devaluation periods, there will not even be a nominal growth in personal income. Economic crises in the neighbouring states mean that labour migration will be limited.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.