LABOR AND EMPLOYMENT
When speaking at the briefing during the G20 summit, Minister Maxim Topilin stated that for the first time in many year Russia registered the record low level of unemployment and the number of vacancies at the labor market exceeded the number of officially registered unemployed.
Today in Russian there are 1.8 mln job openings, and the officially registered unemployed number is about 944 thousand individuals.
“5.3% – here is June data on the unemployment in Russia according to the statistics of the International Labor Organization. This figure is lower than in many countries of the European Union and USA, - he emphasized . – We think this is a great achievement”.
At the same time, Minister said, the Government is to concentrate on measures which will make it possible to provide structural changes in the sphere of employment, retrain unemployed individuals and improve the quality of professional qualifications.
”This is a topic of the hour for G20 members which was intensively discussed at the meeting of the ministers of labor and employment. In particular, all countries take measures so that the representative of the business society will influence increasingly the improvement of the quality of the specialists training,” – said Topilin.
The G20 members also discussed the matters related to supporting the vulnerable population with the aim of promoting their participation in the labor market, as in many G20 countries there are employment problems connected with natural ageing of population and demographic disbalance.
In conclusion the minister stressed once more the importance of dialogue between labor ministers and ministers of finance: “The joint meeting became novation of the Russian government. The first experience was recognized as successful, and these discussions intended to find the balance will continue”.
“We understand full well that the matters of labor market regulation, job creation and matters of financial stability and economic growth rate are closely related. Such matters must be dealt with together, and all countries face the need to find the balance between them, - he added. – Today it is obvious that the labor market matters cannot be resolved without priming of economy, job creation, labor demand increase”.
FAR EAST
Touching on the recovery of the freshet impact in the Far East, Maxim Topilin said that in addition to restoration of roads and houses destructed by flood the employment agencies operate actively in the region and provide jobs for the flood victims.
“There now people were displaced from their places, and they need some refuge to live for the period , while their houses, infrastructure in the flooded communities are restored. Of course, for preventing their sitting idly, the employment agencies are trying to find temporary jobs for them so that they will not lose their skills and not sit idly,” – Minister said.
PENSION SYSTEM
At the briefing the Minister also stated that the problems of reformation of pension systems were also a subject of intense discussion in the course of the ministers meetings. “During the crisis many countries went to the length of increasing the pension age, stimulating employment of senior individuals, and that resulted in severe cut of jobs and opportunities for younger generations to approach the market”, - said Topilin Maxim.
The Minister pointed out that a package of draft laws on the development of the Russian pension system are at the last stage of approval.
“We plan to submit the whole package of laws to the State Duma in September”, he said. According to the Minister, only one question connected with indexation of the pension insurance component or so called revision of the value of a point has not been coordinated yet.
Maxim Topilin stressed once more that the prepared changes do not provide for any increase of the retirement age. At the same time the developed proposals contain some elements for encouraging individuals to retire on a pension at a later time and work for a longer time. An additional pensionable service coefficient is expected to be introduced for women who have worked for a 30-40 year period and for men who have worked for a 35-45 year period.
There are also worked out measures for increasing pensions for individuals who have decided voluntarily to retire on a pension at a later time. According to the Minister, if, for example, a man decides to retire rather at the age of 65 than 60, the man’s pension will become one-and-a-half time greater. He added that it will be more profitable for individuals with high salary to take advantage of such opportunity.
Maxim Topilin also stated that the Ministry of Finance had given adverse opinion on the proposal of the Ministry to extend the program for government’s co-financing the funded component of pensions; however the work on this matter will be continued. It is necessary to find more specific structures of co-financing”, - the Minister stressed.
LABOR PROTECTION
Moreover, at the briefing there was talk of a package of draft laws regulating the special assessment of the conditions of work. As Maxim Topilin said, it is suggested to encourage improvement of the conditions of labor, as the employer, who has reduced the hazard and danger at the working places, will not pay any additional fees.
“But at the same time there will be no formation of entitlement of employees to early old age pension. Such framework was approved both by trade unions and employers, - he pointed out. - But no early old age pension is cancelled. However if the commission of an enterprise renders verdict that the conditions of work have been normalized, the entitlement to such pension will not be formed”.
According to the Minister, in Russia it has been impossible to approve and implement such framework for 20 years. “We are the only country which has no such pattern. In my opinion, it will contribute to creation of additional opportunities for formation of pension entitlement for the individuals who work at hazardous and dangerous work places”, - said Maxim Topilin.