^NPIDENTkBy
Current Support Brief
LABOR SHORTAGES AND FEWEROB CHANGING
SPUR LABOR TURNOVER IN SOVIET INDUSTRY
0
CENTRAL INTELLIGENCE AGENCY Office of Research and Reports
GROUP 1
j
-
LABOR SHORTAGES AND FEWER RESTRAINTS
ON JOB CHANGING SPUR LABOR TURNOVER IN SOVIET INDUSTRY
Frequent reports In the Soviet press about problems of high labor turnover suggest that voluntary job changing in industry has been Changes in the labor laws and inthewage systemave removed practically all legal and monetary restraints on labor turnover. moreover, the supply of new workers from Soviet schools has declined, and the planned reduction of the Soviet armed forces has been halted. esult, Soviet workers apparently haveseller's market" for their services during the past year or two and have been "voting with their feet" in growing numbers for higher wages and better working conditions.
1. Soviet Press Discussion of the Labor Turnover Problem
At the plenum of the Central Committee of the Communist Party inhrushchev spoke of the "great harm to the economy" caused by the excessive turnover of workers. He suggested thatfar-reaching changes should be made in the labor laws, which would take into account the interests of the state as well as theinterests of the/
References to the turnover problem increased considerably after tho November plenum. In its issue2 the Communist Party weekly. Economic Gazette, invited its readers to submit proposals for solutions to the problem, some of which subsequently woreummary analysis of the opinions expressed in theof letters receivedonth period appeared in the issue of
In spite of the conspicuous absence of any concrete statistics, the press discussionhole suggested that labor turnover in Soviet industry has been increasing and hasevel that the Soviet
Leadership considers to be undesirably high. t was reported that labor turnover in Soviet industry had declinedercent7resumably, this downtrend was reversed
The predominant theme of the letters received by the Economic Gazette, as summarized by the editors, was that turnover could be reducedhe improvement of working and living conditions.
the introduction of incentives for long service at anentcrprise.
better indoctrination of workers,hanges In the labor laws. The editors concluded, however, that the ultimate responsibility for reducing labor turnover was in the hands of the managers at all levels of the economic hierarchy.
Although the editors' summary made no mention of labor shortages, it noted without comment that many readers had recommended that
* The Soviet survey of the reasons for labor turnover in which this decline was cited was followedimilar, but smaller, survey published/ This latter survey, however, gave no data on the trend in labor turnover. The reasons for labor turnover reported in these two interview and questionnaire studies coincide generally with those mentioned in the recent press discussion and do notreflect the real reasons for job changing. Moreover, the reasons given are of limited use in explaining the apparent recent increase in turnover.
retired persons and housewives be induced to enter the labor market,
the government's organized recruitment system (Orgnaborn agency that recruits new workers from the nonworklng population) be more fully used,evere penalties be imposed for unauthorized absences from work. These throe proposals, which are aimed directly at increasing the number of workers or the number of man-hours worked suggest that some readers believe labor shortages are contributing to the current turnover problem. As discussed below, there are several indicationstight" labor market may have contributed to thein voluntary job turnover in recent years.
2. Developments in the Labor Supply
Beginningevelopments in the armed forces and in Soviet schools probablyt least temporarily, the supply oflabor available to Soviet factories. The halt in the demobilisation of the armed forces in1 and the drive to achieveear schooling beginning withchool year reduced the number of entrants to the civilian labor market19 The number of persons graduating from full-time schools has been declining steadilyith an especially sharp drops shown in the following table:
Table
Highhnlkums
Higher educational
Recent evidence that labor has been relatively scarce was contained in the official announcements of the plan fulfillment results for the first quarter According to these announcements, industrialin the USSR increased by lessercent, compared withercent In the first quarter On an annual basis, an increase of lessercent is the smallest since at0 and probably since World War II. This slowdown in the growth of industrial employment suggests, moreover, that labor shortages may be contributing to the slowdown in the growth of industrial production.
Reported Graduations from Pull-Tine Soviet High Schools, Tekhnlkuas, and Higher Educational
Paradoxically, thi* tightening of the labor supply has occurred simultaneously with an increasing rate of growth of the working-age population. The low birth rates of World Warnd subsequent higher rates In the postwar years should have reduced growth of the labor force during thes and accelerated it in thes. Because of significant changes in the educational system and in the size of the armed forces during theears, however, growth of the labor force has not been related directly to growth of theof workine ase.
The labor supply probably will increase appreciably when thelarge crop of graduates fromear schoolshose entry into the labor market was postponedearake jobs thisand fall.
3. Current Absence of Legal and Monetary Restraints on Labor Turnover
A major legal restraint to labor turnover, which was enacted justWorld War II and which provided criminal penalties for quitting one's job without the permission of the plant management, was repealedn additional restraint on mobility was left in effect, howeverorker who voluntarily changed his job forfeited hisfor sick pay and other temporary disability benefits until he had worked at his new Jobonths. This restraint on job turnover was removed in0ecree that extended such benefitsoluntary job-changer regardless of his length of service at the new plant.
Inonetary restraint on job turnover was removed when the further accumulation of longevity benefits was halted for all workers except those engaged in underground work. This restriction on longevity benefits was part of the recent major reform of the wage system in Soviet industry that was intended, in part, to reduce the relative proportion)of workers' earnings paid in the form of supplementary pay and bonuses.
Byherefore, the Soviet labor market had been freed of most formal restraints on voluntary job turnover. Those restraints that were still in effect related primarily to recent graduates of vocational
assignment. At present, labor mobility in many remote areas is being encouraged by poor living conditions, especially woefully poor bousing. The housing shortage for the countryhole, however, restrains rather than encourages job turnover, since those who do have adequate housing are reluctant to move. As the general shortage of housing is
gradually reduced, the effect of this informal restraint will, of course,
be diminished.
4. Possible Action by Soviet Leadership
In his speech at the conference of industrial and construction workers onhrushchev spoke of "the need to use various measures of encouragement, including the systemore active struggle against violators of labor discipline, people who frequently change jobs without any reasons. " He suggested that "the system of vacations should be organized inanner that it would stimulate and encourage those who work. Those peopleove about from one enterprise to another should have their leave reduced or possibly be deprived of leave altogether until they improve their ways. " He emphasized, however, that "this must be very well considered and discussed with workers and employees before adopting any/
Khrushchev's present conservative approach to the problemsharply with his proposal last November for "far-reaching changes" in the labor laws. Perhaps he has had second thoughts about the wisdom of cracking down onviolatoraor, perhaps, he now believes that the labor supply will increase by this summer. Administrative machinery exists at the republic, oblast. and city level to assure the Influx of the bulk of the 8th grade graduates into the labor force, with nducements for them to continue their educationart-time basis. Khrushchev aimed'his more recent attack principally at the chronic job-changershose who are labeled by the Soviet press as "seekers of the easy ruble" and "drifters. " It is unlikely that the present Soviet leadership will reinstitute the legal restraints on voluntary turnover that were in effect
'Analysts:
Coord:
Sources:
2.
Daily Report (USSR and Eastupplement. OFF USE.
Ekonomicheskaya pa^ta {Economic U. lo'd. , U. Ibid.. U.3 U. U.
Kaplan, I. uestionnaire Study of ihe Causes of Labor Turnover in the Industry of the Economic Councils. Problems of Economics. Dec 6l. U.
Ekonomjcheskava
CGNFiOENTIA
Original document.
Comment about this article, ask questions, or add new information about this topic: