Deputy Prime Minister Zhukov's introductory remarks:
Good afternoon, ladies and gentlemen,
The economy is gradually coming out of recession, but the situation in the labour markets remains very problematic. Today I suggest we review the effects of the regional programmes in 2009, which stipulated additional arrangements to decrease the strain on the labour markets of the constituent entities of the Russian Federation. Also, I would like to discuss continuing these programmes in 2010.
I would like to remind you that all constituent entities of the Russian Federation drew up and approved these programmes in early 2009. A total of 38.1 billion roubles were allocated for these programmes, including 35.6 billion roubles from the federal budget. We spent a total of 33.4 billion roubles on this last year.
A total of 2.8 million people were involved in regional employment programmes, including:
- 1.8 million people at risk of losing their jobs;
- 0.4 million unemployed people;
- 0.5 million people looking for jobs;
- 0.1 million university graduates.
Over 1.3 billion roubles have been spent on preventive retraining programmes for 216,000 people at risk of losing their jobs. These people acquired professional skills that they will need in the near future.
Most of these funds, 25 billion roubles, were spent on providing public works, which employed 2.4 million people.
Targeted support measures, such as the relocation of people to new regions for subsequent employment, account for 380 million roubles. This programme involved 11,000 people.
A total of 7.5 billion roubles were spent on measures to encourage the development of small-sized businesses and self-employment. Over 127,600 people started up their own businesses.
The analysis of the effects of the regional programmes in 2009 showed that all of these additional measures to decrease the strain on labour markets were popular with employers, employees, jobless people and job applicants, with the exception of the programme for relocating people to new regions for subsequent employment.
The programmes that encourage the development of small businesses and self-employment proved particularly popular; 2009 saw a fivefold increase in the number of new jobs in small businesses.
It is important to note that regional programmes allowed us not only to avoid mass layoffs and increases in unemployment, but also lower the number of jobless people registered with employment agencies.
Government measures stabilised the situation in the labour market, increasing the number of people involved in regional programmes and receiving assistance from employment agencies. Half of those who applied to employment agencies received new jobs, which is testimony to the effectiveness of our efforts.
Meanwhile, the situation in labour markets this year remains very challenging.
About 6.2 million people remain without employment, which is 8.2% of the economically active population, while an average of 2.1 million people are registered as unemployed, which is 2.8% of the economically active population. Since the beginning of this year the number of unemployed people has grown by 35,000, reaching 2,166,000 on January 27.
There were 724,800 vacancies in the labour markets at the end of 2009, which is 19% less than a year ago.
The aggregate tension ratio in the Russian labour markets [the ratio of the number of unemployed people registered with employment agencies to the number of vacancies] averaged 3.2 in Russia at the end of December 2009.
Some 480,000 employees are expected to lose their jobs and 940,600 have already lost them at present.
Although the number of the employees who have dead time through the fault of their employers, or were forced to work part-time or take time off on the initiative of the employer, remains relatively stable, it is very high, at over 1.5 million people. There is a high probability that over 62,000 and 30,000 employees will be dismissed at companies that shape the economic profile of a particular town or industry respectively.
The government and regional authorities are continuing the additional measures to reduce the stress on the labour markets of the constituent entities of the Russian Federation. A total of 36.3 billion roubles from the federal budget have been appropriated for these purposes.
In 2010 the number of people who receive preventive vocational retraining will decrease by 45% (compared to 2009). This type of preventive vocational retraining will be retargeted to mainly allowing people to acquire a second or allied trade rather than to upgrade skills. This will improve their chances of finding a job in other industries, which is especially pertinent given current job cuts.
The number of people employed in public works and the number of temporary jobs will decrease. Public works will mostly be transferred to enterprises. The number of people employed at municipal works will also decrease somewhat.
At the same time, the number of self-employed people and people involved in programmes for encouraging the development of small businesses and self-employment will increase considerably, by 37%. Funding for these programmes will also be increased significantly, by 38%.
All regional programmes will require re-examinations of the labour markets in single-industry towns and support plans for employees at backbone companies that have found themselves in a predicament. These programmes also include other plans to decrease stress on the labour markets of single-industry communities.
Comprehensive modernisation plans for 27 single-industry towns are now being refined, to be put into effect this year. I would like regional leaders to ensure that they coordinate the measures stipulated by these comprehensive plans and the 2010 regional programmes for promoting employment and improving the situation in the labour markets.
As of February 3, 82 regional programmes have been considered and worked out for 2010, which will require a total of 33.4 billion roubles.
Over 1.2 million people are involved in regional employment programmes.
The Federal Service for Labour and Employment signed agreements with 71 regional governments to implement these programmes in 2010.
Ten billion roubles in federal subsidies, which are the first 40% of the allocations within the framework of the regional programmes, have been transferred to 55 constituent entities of the Russian Federation.