{"id":197410,"date":"2026-07-27T14:10:57","date_gmt":"2026-07-27T11:10:57","guid":{"rendered":"https:\/\/pozirk.online\/en\/longreads\/197410\/"},"modified":"2026-07-27T14:11:02","modified_gmt":"2026-07-27T11:11:02","slug":"how-low-unemployment-is-indicative-of-belarus-poor-economic-health","status":"publish","type":"longreads","link":"https:\/\/pozirk.online\/en\/longreads\/197410\/","title":{"rendered":"How low unemployment is indicative of Belarus\u2019 poor economic health"},"content":{"rendered":"\n<p><strong>A decline in Belarus\u2019 unemployment rate to 2.1 percent, according to the country\u2019s statistics agency Bie\u0142stat, is not an indicator of a sound economy but rather a reason for concern about a shortage of people capable of working.<\/strong><\/p>\n\n\n\n<figure class=\"block-image block-image-normal\">\n\n    <img decoding=\"async\" width=\"1128\" height=\"752\" src=\"https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/bezrab_collage_pozirk.jpg\" class=\"attachment-full size-full\" alt=\"\" srcset=\"https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/bezrab_collage_pozirk.jpg 1128w, https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/bezrab_collage_pozirk-354x236.jpg 354w, https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/bezrab_collage_pozirk-734x490.jpg 734w, https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/bezrab_collage_pozirk-178x118.jpg 178w, https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/bezrab_collage_pozirk-768x512.jpg 768w\" sizes=\"(max-width: 1128px) 100vw, 1128px\" \/>\n    <figcaption>\n        \n                    <div class=\"block-image__author\">\n                                <span>(Andrea Piacquadio\/pexels.com, Sasun Bughdaryan\/unsplash.com, t.me\/novayaby, katyveldhorst\/pixabay.com \/ Pozirk&#039;s collage)<\/span>\n            <\/div>\n            <\/figcaption>\n<\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Soviet welfare system too costly<\/h2>\n\n\n\n<p>Belarus inherited from the Soviet Union not only its industries but also its attitude toward work as an obligation. In an effort to replicate the Soviet practice, the regime has been fighting \u201csocial parasites\u201d by forcing people into employment. However, this effort is failing because the government no longer has the former welfare system at its disposal.<\/p>\n\n\n\n<p>In officials\u2019 view, the fewer unemployed people there are, the better. However, modern economies are more complicated.<\/p>\n\n\n<div class=\"flourish-embed flourish-chart\" data-src=\"visualisation\/29804441\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/public.flourish.studio\/visualisation\/29804441\/thumbnail\" width=\"100%\" alt=\"chart visualization\" \/><\/noscript><\/div>\n\n\n\n<p>A certain level of unemployment is inevitable even in a normally functioning and growing economy: people change jobs, move, acquire new skills and look for more suitable positions. Graduates do not always find a job the day after receiving their diplomas. Some people can afford to reject the first offer they receive or even live off their savings for a while.<\/p>\n\n\n\n<p>This is known as frictional unemployment \u2014 a natural result of workers moving between companies and professions. If it disappeared completely, that would not mean full employment but rather the end of normal circulation in the labor market.<\/p>\n\n\n\n<p>Moreover, supporting people while they look for work does not necessarily mean supporting dependents. With a sensible system of benefits, retraining and employment assistance, workers can find jobs where their skills are put to better use. In the long run, this increases productivity, wages and tax revenues.<\/p>\n\n\n\n<p>Belarusian officials, however, took a different path. They never created a comprehensive unemployment insurance system. For decades, employment at state-owned enterprises served as its substitute.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A salary as a hidden benefit<\/h2>\n\n\n\n<p>Many state-owned enterprises in Belarus employed more workers than they needed for efficient production. Economically, this meant excessive costs and low productivity. Politically, however, it solved several problems at once.<\/p>\n\n\n\n<p>People received a regular, if small, salary. Enterprises provided social infrastructure. Workers remained dependent on the state not only as citizens but also as income earners. The approach helped reduce unemployment at the expense of high costs.<\/p>\n\n\n\n<p>In effect, a job at an inefficient enterprise served as a hidden unemployment benefit. The money was not paid out of a transparent insurance fund, however, but through subsidized loans, budget support, cross-subsidies and the accumulation of corporate debt.<\/p>\n\n\n\n<p>The system could afford this luxury as long as there were relatively many workers on the market. The private sector and more successful industries attracted the most skilled workers with higher wages, while state-owned enterprises maintained a labor force reserve. Recent labor shortages have exposed the flaws of this arrangement.<\/p>\n\n\n\n<p>Belarus\u2019 population has not only been shrinking but also aging. The trend has been exacerbated by the politically motivated and economic emigration of recent years. As a result, the labor shortage is no longer a problem for some companies but a major economic constraint.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Pakistan did not work out, and Uzbeks rebelled<\/h2>\n\n\n\n<p>The authorities have effectively acknowledged the problem. Hundreds of thousands of vacancies are listed on the labor market, and Alaksandar \u0141uka\u0161enka has publicly said that there is a shortage of labor and that workers therefore need to be invited from other parts of the world.<\/p>\n\n\n\n<p>He tried to attract up to 150,000 workers from Pakistan, but that did not work out. The authorities then turned to Uzbekistan.<\/p>\n\n\n\n<p>However, migrant workers also expect decent salaries and working conditions. And this is something the government is struggling to offer.<\/p>\n\n\n\n<p>In July, around 250 workers from Uzbekistan arrived in the Viciebsk region. Two days later, some of them recorded a video appeal, saying they were not prepared to work for $500. According to the Uzbek workers, the initial offer had been significantly higher \u2014 around $1,000.<\/p>\n\n\n\n<p>In Belarus\u2019 authoritarian environment, where fear of repression permeates society, this protest looked audacious. A foreign worker, however, takes a pragmatic view of how much money will be left after expenses, the living conditions and the alternatives available in other countries.<\/p>\n\n\n\n<p>If comparable work pays more in Russia, Poland, Lithuania or other migration destinations, most workers will go there. Many Belarusian companies simply cannot afford to pay competitive wages without financial assistance from the government.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Labor market under pressure<\/h2>\n\n\n\n<p>Thus, an unemployment rate of 2.1 percent is not indicative of economic health. Combined with the shrinking population, emigration, a huge number of vacancies and the search for workers in Asia, it is a sign of a labor market under extreme pressure.<\/p>\n\n\n\n<p>For businesses, this means rising costs and an inability to expand production. For state-owned enterprises, it means the collapse of a familiar model in which a lack of efficiency was offset by an abundance of cheap labor. And the state must choose between raising wages, closing inefficient production facilities, increasing productivity and large-scale labor migration.<\/p>\n\n\n\n<p>Propaganda can, as before, call a two-percent unemployment rate an achievement. But it is becoming increasingly difficult to explain why workers from distant parts of the world are not willing to come to a country where, supposedly, all the conditions for work have been created. And, most importantly, why there are not enough Belarusians themselves.<\/p>\n\n\n\n<div class=\"insert-block\">\n\n    <div class=\"insert-block__img\">\n        <img decoding=\"async\" width=\"354\" height=\"236\" src=\"https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/uzbek_collage_pozirk-354x236.jpg\" class=\"attachment-medium size-medium\" alt=\"\" srcset=\"https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/uzbek_collage_pozirk-354x236.jpg 354w, https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/uzbek_collage_pozirk-734x490.jpg 734w, https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/uzbek_collage_pozirk-178x118.jpg 178w, https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/uzbek_collage_pozirk-768x512.jpg 768w, https:\/\/pozirk.online\/wp-content\/uploads\/2026\/07\/uzbek_collage_pozirk.jpg 1128w\" sizes=\"(max-width: 354px) 100vw, 354px\" \/>                        <label class=\"insert-block__tag--mobile\"> The Viewer<\/label>\n\n                <\/div>\n    <div class=\"insert-block__text\">\n                    <label class=\"insert-block__tag\">The Viewer<\/label>\n                <h3 class=\"insert-block__title\">Uzbek workers unlikely to solve Belarus&#039; labor crisis<\/h3>\n        <div class=\"insert-block__descr\">Around 5,000 Uzbek workers will arrive in Belarus&#039; Viciebsk region to fill jobs in agriculture, construction, industry and the services sector, with some also set to work as nurses, Alaksandar \u0141uka\u0161enka&#039;s press office reported this week. The move is intended &#8230;<\/div>\n        <a class=\"insert-block__btn-block\" href=\"\/en\/longreads\/195769\">\n            <button class=\"btn\">\n                <div class='btn__text'>Read<\/div>\n            <\/button>\n        <\/a>\n    <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>A decline in Belarus\u2019 unemployment rate to 2.1 percent, according to the country\u2019s statistics agency Bie\u0142stat, is not an indicator of a sound economy but rather a reason for concern about a shortage of people capable of working. Soviet welfare system too costly Belarus inherited from the Soviet Union not only its industries but also [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":197267,"template":"","rubric":[24],"class_list":["post-197410","longreads","type-longreads","status-publish","has-post-thumbnail","hentry","rubric-theviewer"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How low unemployment is indicative of Belarus\u2019 poor economic health | Pozirk<\/title>\n<meta name=\"description\" content=\"A decline in Belarus\u2019 unemployment rate to 2.1 percent, according to the country\u2019s statistics agency Bie\u0142stat, is not an indicator of a sound economy but\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pozirk.online\/en\/longreads\/197410\/\" \/>\n<meta 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