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Page 8
Analysis of the Results of the Targeted
Program for Promoting Employmentfor the Population of Minatom
Closed Administrative-TerritorialZones for 1998–2000
Irina V.Yefimkova *
Department of Regional, Social, and Personnel Policy, Russian
Ministry of Atomic Energy
In 2000, positive trends continued in the development of industrial
production and atomic power engineering within the Minatom
(Ministry of Atomic Energy) system. The state order was fulfilled
according to the established tasks and limits.
The rate of growth of industrial manufacturing output volume
totaled 109.3 percent in 2000 (109 percent for Russia as a whole),
while 103.5 percent is predicted for 2001 (in comparison with the
previous year, in comparable prices). The growth of output volumes
in 2000 is basically associated with the increase in electric power
production at atomic power plants and the corresponding growth of
manufacturing output volume in the nuclear fuel industry.
The active implementation of measures included in programs
providing employment assistance to the population has had a
substantial impact in reducing tensions in the registered labor
market. The process of layoffs at enterprises and organizations has
slowed, while the number of individuals placed in temporary jobs
has increased. The number of participants in public works projects
is also growing.
Thanks to funds attracted, as well as the use of outside
investments, local government agencies in the closed
administrative-territorial zones have carried out projects to
create enterprises in the following fields:
manufacture and processing of food products (Zheleznogorsk,
Lesnoi, Ozyorsk, Seversk, Snezhinsk)
light industry (Novouralsk, Seversk)
* Translated from the Russian by Kelly Robbins.
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minatom closed
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manufacture of water pipes and sanitary equipment using promising
new materials (Tryokhgorny)
wood processing (Zheleznogorsk, Lesnoi)
retail trade and the service sphere (Zheleznogorsk, Lesnoi,
Seversk)
construction and renovation of the urban infrastructure, housing,
and public facilities (Lesnoi, Novouralsk, Ozyorsk, Sarov, Seversk)
industrial and domestic waste processing (Zheleznogorsk,
Novouralsk)
manufacture of medical preparations (Zheleznogorsk, Sarov)
processing of local mineral raw materials (Zheleznogorsk)
agricultural production (Lesnoi)
sports and tourism (Tryokhgorny) and a number of others
Within the framework of the Targeted Program for Promoting Employment
for the Population of Closed Administrative-Territorial Zones of the
Russian Ministry of Atomic Energy for 1998–2000, and thanks to
the resources provided by those executing the program, about 13,300
jobs were created and preserved in 2000. More than 1,250 people took
part in public works projects, and 1,200 were provided with job
training. (See “Report on Implementation in 2000 of Measures
from the Federal Targeted Program of Employment Assistance to the
Population of the Russian Federation for 1998–2000,”
Russian Ministry of Labor, February 27, 2001, No. 448, Appendix 1,
pages 21–22.)
SITUATION IN THE EMPLOYMENT SPHERE
From 1994 through 2000 the number of unemployed persons in the
Minatom closed zones registered by local employment service
agencies of the Russian Ministry of Labor rose to 4.8 percent in
1996 and fell to 2.2 percent in 2000 (see Tables 1 and 2).
TABLE 1 Size of Economically Active Population and Overall
Registered Unemployment Rate in Minatom Closed Zones,
1994–2000
Registered as of End of Reporting period
1994
1995
1996
1997
1998
1999
2000
Economically active population
416,120
413,900
411,130
416,880
416,770
426,750
417,090
Number of unemployed registered by local agencies
9,480
16,970
19,980
18,040
19,590
13,660
9,180
Registered unemployment rate (%)
2.3
4.1
4.8
4.3
4.7
3.2
2.2
Page 10
TABLE 2 Registered Unemployment Rate in Minatom Closed Zones,
1994–2000 (in percentages)
City (Closed Zone), Region
1994
1995
1996
1997
1998
1999
2000
Russian Federation
2.3
3.3
3.6
2.9
2.9
1.8
1.4
Zheleznogorsk
2.0
6.0
6.0
5.8
3.1
1.5
1.1
Krasnoyarsk Territory
3.8
3.8
4.3
3.4
2.6
Zarechny
6.2
8.8
8.2
6.8
7.9
5.8
3.1
Penza Oblast
6.2
5.7
3.8
1.9
1.6
Zheleznogorsk
2.6
2.3
3.1
2.0
2.9
2.7
2.7
Krasnoyarsk Oblast
3.8
3.8
4.3
3.4
2.6
Lesnoi
2.7
3.7
4.0
2.9
5.5
3.8
3.6
Sverdlovsk Oblast
3.3
2.7
2.7
1.5
1.5
Novouralsk
0.5
2.6
4.7
4.7
6.3
4.2
2.9
Sverdlovsk Oblast
3.3
2.7
2.7
1.5
1.5
Ozyorsk
1.0
1.9
3.6
4.6
5.8
3.2
2.3
Chelyabinsk Oblast
2.2
1.9
2.0
1.1
0.9
Sarov
0.5
1.5
2.3
1.7
2.4
2.0
1.2
Nizhny Novgorod Oblast
3.1
2.6
2.4
1.0
0.7
Seversk
3.7
6.3
7.3
5.9
5.1
3.6
2.0
Tomsk Oblast
3.8
3.6
4.0
2.4
2.0
Snezhinsk
1.8
2.2
2.8
1.8
2.7
1.4
0.8
Chelyabinsk Oblast
2.2
1.9
2.0
1.1
0.9
Tryokhgorny
3.4
6.0
5.4
6.9
5.8
4.5
2.7
Chelyabinsk Oblast
2.2
1.9
2.0
1.1
0.9
NOTE: Figures are shown for registered unemployment rates in
Minatom cities (closed zones) in which unemployment levels exceed
levels for the regions in which the cities are located. Blank cells
in the table indicate that no data are available for those periods.
By the beginning of 2000, the unemployment rolls included 13,656
people, of whom 63 percent were women and 38 percent were young people
between the ages of 16 and 29.
During 2000 the proportion of unemployed citizens who had been
registered with the employment service for more than one year fell
from 25.1 percent to 16.8 percent. Stagnant unemployment was reduced
as the average duration of unemployment tended to decline, totaling
5.1 months as of January 1, 2001, as compared with 7.1 months as of
January 1, 2000. The duration of unemployment was reduced as follows:
among men, from 6.2 to 5.1 months
among women, from 7.6 to 6.7 months
among citizens living in urban districts, from 7.0 to 6.0 months
among citizens living in rural districts, from 8.4 to 7.0 months
among young people 16–29 years of age, from 6.3 to 5.4
months
The number of job vacancies at the end of 2000 increased in comparison
with 1999, totaling 19.8 percent, or 3,850 open positions. Requests to
Page 11
employment service agencies by enterprises wishing to fill open jobs
totaled 1,393 in 1999 and 3,850 in 2000, an increase of about 280
percent. Demand for workers in the state sector of the economy also
rose, representing 29.6 percent of total demand in 1999 and 38.2
percent in 2000. More than 80 percent of vacancies were in blue-collar
fields, and the majority of the requests were for men. During 2000 the
labor market intensity coefficient (number of unemployed citizens
registered with the employment service for every one vacancy)
decreased by almost 43 percent, going from 4.2 individuals per job
opening to 2.4.
A total of 1,025 people, or 6.3 percent of the total registered as
unemployed during the year, took part in public works projects in
2000.
The number of unemployed who received unemployment benefits during
2000 was 17,323. Material assistance has been established for
unemployed citizens and their family members for cases in which
unemployment benefits have run out owing to the expiration of the
legally established eligibility period.
Despite the drop in the total number of unemployed and the continuing
positive factors of development, the trend toward improvement in the
condition of the labor market cannot be termed stable. There are a
large number of vacancies in the labor market, but these jobs are not
in demand for the following reasons: the majority of vacancies are for
men, offer low wages, and are at enterprises where payment of wages is
often delayed. Women and young people represented an increased portion
of those laid off. The number of citizens requesting job placement
assistance or receiving psychological, legal, and career guidance
services has risen by 37 percent.
LABOR DEMAND OUTLOOK
A critical situation could develop in the labor market in the
closed zones during implementation of the Federal Targeted Program
for Reform of Atomic Industry Enterprises (Nuclear Weapons Complex)
for 2001–2005 and for the period up to 2010. Measures
included in this program call for enterprises of the nuclear
weapons complex to lay off 30,000– 35,000 people during the
specified period.
The biggest and most intensive efforts on conversion in the
industry are to be carried out during the first stage of the reform
program (2002– 2005), which will require significant state
support. Thanks to the development of conversion-oriented
manufacturing enterprises, about 30,000 new jobs will be created
for workers laid off from the defense sector.
To ensure socioeconomic development and provide jobs for the
population, local government agencies in the Minatom closed zones
are carrying out investment projects to create small- and
medium-sized enterprises in the following fields: production and
processing of food products; pro
Page 12
cessing of wood and local mineral resources; construction and
renovation of urban infrastructure, housing, and public facilities;
processing of industrial and domestic waste; manufacturing of metal
and plastic goods and medical preparations; retail trade and the
services sphere; agricultural production; light industry; sports;
tourism; and a number of others. These projects are being carried out
with funds from local budgets and from outside investments.
The job creation efforts being undertaken by local self-government
organs and by the management of the Minatom enterprises around which
the closed zones center will make it possible to ensure employment for
the population of the Minatom closed zones. They will also help to
prevent the growth of mass unemployment in connection with layoffs
during the reorganization and reform of nuclear weapons complex
enterprises.
KEY PROBLEMS REGARDING EMPLOYMENT OF THE
POPULATION IN MINATOM CLOSED ZONES
According to provisions of the subprogram Reform of Atomic Industry
Enterprises (Nuclear Weapons Complex) for the period to 2010 of the
Federal Targeted Program for Reform of the Defense Industrial
Complex for the period to 2010, the following represent key
problems regarding employment of the population and personnel and
social policy in the Minatom closed zones:
preserving and developing collectives of highly skilled
specialists and workers
consolidating personnel around the fundamental development
tasks for the industry
sharply increasing labor productivity (output per worker)
In addressing the above-specified problems it is necessary to
support
preserving and effectively augmenting the personnel potential
of the industry and stepping up efforts aimed at training and
attracting young specialists and scientific personnel,
selecting and assigning managers, and working with the
reserve pool
identifying specialists with critical knowledge that is key
to the main thematic directions of activity in the industry
and creating a system of priorities in wage payment, work
organization, and resolution of social questions
developing international cooperation in the training of
specialists and creating the necessary training methodology
base, training simulators, equipment, manuals, and
documentation
Page 13
improving efforts to organize and equip workplaces, developing and
implementing measures to improve workplace safety and safety
equipment, and systematically improving qualifications as
foundations for increasing labor productivity
preserving existing jobs and creating new ones during the process
of enterprise conversion and reconstruction and placing top
priority on the development of high-tech science-intensive
production facilities
developing and improving the system of interaction of Minatom with
government agencies at the federal, local, and Federation-subject
levels in the aim of developing and implementing programs to create
conditions favorable for outside investors, preserve and foster
scientific and industrial potential, and create new manufacturing
enterprises
preserving and developing the industry-wide corporate system for
ensuring social protection of workers in the industry, providing
for their medical-sanitary and pension needs, and organizing worthy
conditions for work and rest
developing cooperation with regional government agencies on
questions of employment of the population, socioeconomic
development, education, culture, housing construction, social
insurance, and so forth
establishing mechanisms for the granting of housing on credit at
enterprises of the industry, including mortgage lending, that will
guarantee the provision of housing to workers and their family
members, especially young specialists
Social and personnel efforts in the industry should make it
increasingly attractive in the aim of maintaining collectives of
highly qualified specialists.
The objectives established in social and personnel policy are pursued
through the use of consolidated financial assets and include the
following key points:
implementing a uniform industry-wide corporate system of social
protection for workers in the industry that provides for their
pensions and medical care and ensures the organization of
comfortable conditions for work and rest
preserving and effectively augmenting the personnel potential of
the industry and coordinating efforts regarding the training of
young specialists and scientific staff and the selection and
placement of managers
expanding interaction with local government agencies in the
closed administrative-territorial zones regarding employment of
the population, social insurance, housing construction, and
socioeconomic development
preserving the existing system of social insurance for workers
in the industry
preparing and adopting the necessary regulatory measures
ensuring completion of a certain amount of housing space
annually to improve housing conditions for workers in the
industry
Page 14
establishing mortgage lending mechanisms at industry enterprises
to guarantee housing opportunities for young specialists sent to
work at industry enterprises, which should reduce turnover at
nuclear weapons complex enterprises and ensure timely
replacement and continuity of workers with critical knowledge
and skills
The strategy of regional development is substantially based on the
promotion and use of effective technologies in production and
management and on the creation of linkages with new partners. This
gives enterprises, and especially closed zones, new opportunities to
expand their activities by participating in the development and
implementation of regional strategies. With the implementation of
major projects in the regions to create new science-intensive and
innovative production facilities using civilian nuclear technologies
in cooperation with regional governments and domestic and foreign
partners, the enterprises of the Minatom closed zones will gain new
business and be able to use their significant technological and
industrial potential more effectively.
GOALS AND TASKS OF THE PROGRAM
The goals and tasks of the program are determined by the Federal
Targeted Program for Promoting Employment for the Population of the
Russian Federation for 1998–2000, which was authorized by
Resolution No. 828 of the Government of the Russian Federation
dated June 24, 1998. (See Collected Legislation of the Russian
Federation, 1998, Volume 33, Article 4005, and 1999, Volume 26,
Article 3184.) These goals and tasks are based on a general
agreement among the all-Russian associations of trade unions,
all-Russian associations of employers, and the Government of the
Russian Federation for 2000–2001. They are also based on the
current Industry Wage Agreement for the Atomic Power Industry and
the concept of reforming Minatom as presented in the subprogram
Reform of Atomic Industry Enterprises (Nuclear Weapons Complex) for
the period to 2010, which is part of the Federal Targeted Program
for Reform of the Defense Industrial Complex for the period to
2010.
The basic goal of the program is to provide employment for the
population of the Minatom closed zones and prevent the mass growth
of unemployment in connection with layoffs of workers during the
reorganization and reform of nuclear weapons complex enterprises.
The main tasks of the program are as follows:
preserving, developing, and effectively utilizing existing
industrial, technological, and personnel potential of the
enterprises in the closed zones during the reorganization and
reform of Minatom
Page 15
reorienting laid-off personnel to the development and production of
civilian goods and services
supporting and developing entrepreneurship and self-employment
among the population
organizing temporary jobs and public works employment
In all, the program calls for creating 17,800 new jobs, providing
temporary employment in public works projects for 44,900 people, and
providing retraining or training in new professions for 185,300
people. The program is to be carried out from 2002 through 2005.
Tables 3, 4, and
5 provide data on the program for the city of
Zarechny.
KEY AREAS OF PROGRAM ACTIVITIES
The key areas of program activities in accomplishing the tasks set
for the Minatom closed zones are as follows:
improving employment-related laws and regulations in closed
zones (conditional work, wages, employment assistance for
laid-off workers, improvement in the quality and professional
development of the workforce, and so forth). In particular,
this pertains to the competence of managing bodies of the
industry and to opportunities for their initiative.
creating and preserving jobs
increasing the efficiency of labor utilization
reorganizing and reforming production (basic activity) as a
source of jobs
promoting improvement of the qualifications and professional
mobility of personnel and working with the vocational
education system to improve the professional skill structure
of personnel in the closed zones
ensuring staff rotation to replace highly qualified
specialists who have retired from the industry
providing employment assistance for vocational school
graduates and young specialists
developing labor markets at the industry, municipal, and
enterprise levels and providing employment assistance for
laid-off workers, especially those from enterprises around
which the closed zones are based, by resettling them in other
regions, placing them in jobs at other industry enterprises,
and providing them with housing
organizing temporary jobs and public works projects
developing social partnership in the industry, in municipal
organizations, and at enterprises
expanding interaction of closed-zone enterprises with
executive-branch agencies of Russian Federation subjects and
regional agencies of the Russian Ministry of Labor regarding
employment-related issues
Page 16
TABLE 3 Employment Situation in Zarechny and Related Assistance
Measures
Volume of Financing (in rubles)
Target of Measures
Including: 2002–2005
2002
2003
2004
2005
Source and Financing
Zarechny
Citizens discharged from military service and their family
members
76,230
38,110
11,860
5,940
16,350
8,170
21,600
10,800
26,400
13,200
Fed.Budget Ministry of Labor
Number of persons
65
12
15
18
20
Persons nearing retirement age
161,200
30,240
10,800
5,400
13,800
6,540
16,800
8,400
19,800
9,900
Fed.Budget Ministry of Labor
Number of persons
51
10
12
14
15
Persons released from prison
30,030
15,010
2,980
1,490
5,450
2,720
8,400
4,200
13,200
6,600
Fed.Budget Ministry of Labor
Number of persons
25
3
5
7
10
Long-term unemployed (six or more months)
331,100
165,550
61,380
30,690
74,120
37,060
90,000
45,000
105,600
52,800
Fed.Budget Ministry of Labor
Number of persons
285
62
68
75
80
Total:
800,600
534,000
266,600
138,000
92,000
46,000
175,700
117,400
58,300
219,600
146,400
73,200
267,300
178,200
89,100
TOTAL Fed.Budget Ministry of Labor
Number of persons
456
92
107
122
135
Page 17
TABLE 4 Assistance to Development of Self-Employment and
Entrepreneurial Initiative
Volume of Financing (in rubles)
Target of Measures
Including: 2002–2005
2002
2003
2004
2005
Source and Financing
Zarechny
Assistance to development of self-employment and
entrepreneurial initiative
200,400
200,400
22,500
22,500
39,600
39,600
54,450
54,450
83,850
83,850
Fed.Budget Ministry of Labor
Number of persons
37
5
18
10
14
Program to support development of entrepreneurship and
self-employment, including:
Training unemployed and nonworking population in basics of
entrepreneurial activity
111,200
55,600
12,500
6,250
22,000
11,000
30,200
15,100
46,500
23,250
Fed.Budget Ministry of Labor
Number of persons
37
5
8
10
14
Providing financial help to organize entrepreneurial
activity
289,500
144,950
32,500
16,250
57,200
28,600
78,700
39,500
121,100
60,600
Fed.Budget Ministry of Labor
Number of persons
37
5
8
10
14
Total:
1,002,100
601,100
401,000
112,500
67,500
45,000
198,000
118,800
79,200
272,400
163,400
109,100
419,200
251,500
167,700
TOTAL Fed.Budget Ministry of Labor
Number of persons
111
15
24
30
42
Page 18
TABLE 5 Material Support for Persons Recognized as Unemployed
Volume of Financing (in rubles)
Target of Measures
Including: 2002–2005
2002
2003
2004
2005
Source and Financing
Zarechny
Payment of unemployment benefits
56,893,100
8,756,000
11,471,000
16,149,700
20,516,400
Ministry of Labor
Persons
7,885
1,440
1,715
2,195
2,535
Rendering of material and other aid
90,600
14,300
18,100
25,500
32,700
Ministry of Labor
Persons
348
65
75
96
112
Vacations for children of unemployed citizens
889,000
138,500
178,600
254,200
317,700
Ministry of Labor
Persons
314
58
68
88
100
Page 19
EVALUATION OF EXPECTED EFFECTIVENESS OF
PROGRAM
Implementation of the program will substantially lessen the
acuteness of such an important social problem as unemployment,
which is caused by the sharp reduction of production volumes for
the manufacture of defense-related and other traditional output at
nuclear weapons complex enterprises in the Minatom closed zones.
Measures for restructuring nuclear and chemical manufacturing
enterprises call for them to increase their total output volume of
civilian products to 220 percent of year 2000 levels by 2010.
Products intended for export should be increased by 120 percent,
while export goods should total 39.7 percent of overall production
output.
In the course of implementing measures for structural optimization
and restructuring, assembly line enterprises of the nuclear weapons
complex are to increase their total output volume for civilian
goods to 500 percent of year 2000 levels by 2010. Output of
products intended for export is to be increased by 180 percent.
Plans call for the creation and start-up of industrial facilities
that will make it possible to produce competitive civilian products
valued at 29.5 billion rubles. The proportion of export-oriented
products will reach 37.7 percent of the total output volume of
conversion-related goods by 2010. The recoupment period for these
investments will be two or three years, and the development of
these conversion-oriented manufacturing facilities will create
about 30,000 jobs for workers laid off from the defense sector.
To ensure stable socioeconomic development and provide jobs for the
population, local government agencies in the Minatom closed zones
are carrying out investment projects to support and develop
entrepreneurship and self-employment among the population. These
projects are being carried out with funds from local budgets and
from outside investments.
Local government agencies and the management of enterprises around
which Minatom closed zones are based are jointly carrying out
measures to create new jobs. These measures will make it possible
to provide employment for the population in the Minatom closed
zones and prevent the growth of mass unemployment in connection
with layoffs of workers during the reorganization and reform of the
enterprises of the nuclear weapons complex. Some 17,800 new jobs
will be created as a result of programmatic measures to be carried
out during 2002–2005.
All projects proposed for implementation within the framework of
the program are subject to a mandatory environmental impact
assessment and will facilitate a substantial improvement in the
condition of the environment in areas adjoining nuclear facilities
in the closed zones. The basic tasks concerning ecology and
industrial waste management at enterprises in the industry include
Page 20
ensuring the ecological safety of atomic power plants and
related industrial facilities during their operation and
decommissioning
providing for the safe handling of radioactive and toxic wastes
during their formation, transportation, processing, storage, and
final disposition (burial)
rehabilitating natural sites (land areas and bodies of water)
polluted with radioactive or toxic wastes during the operation
of atomic power plants and related industrial facilities
To improve safety for the storage of environmentally hazardous
radioactive wastes, a set of measures is planned to renovate and
construct warehouses and storage facilities, taking into account the
increased demands of safety rules and SNIIP-90. Further measures will
be aimed at conservation of storage facilities for radioactive mine
tailings.
Along with the decommissioning of nuclear facilities, radiation
sources, and storage points for nuclear materials, radioactive
substances, and wastes, a range of efforts is under way to dismantle
contaminated equipment and structures. The rehabilitation of
environmental sites (land areas and bodies of water) contaminated with
radioactive or toxic wastes during the activity of industry
enterprises includes a set of measures to be carried out at industrial
sites, in sanitary-protective zones, and in zones under enterprise
supervision.
MANAGEMENT AND CONTROL OF PROGRAM
IMPLEMENTATION
Fundamental control of program implementation is carried out by the
Minatom industry commission that directed the development of the
program. Local government administrations in the closed zones and
regional employment offices of the Russian Ministry of Labor also
participate in this work, along with the Union of Employers in
Atomic Engineering, Industry, and Science of the Russian Federation
(SRMAE) and the leadership of the Russian Trade Union of Workers in
the Atomic Power and Related Industries (RAEP).
The basic task of the industry commission is to ensure that the
fundamental goals of the program are achieved in a highly
cost-effective manner. In accordance with this goal, the commission
carries out the following functions:
1. At the program development stage
definition of goals and ways of achieving them
determination of work structure and implementers for the
entire program period
coordination, correction, and approval of the program
Page 21
2. At the program implementation management stage
monitoring of program performance overall and for individual
tasks
analysis of current status of work and forecasting of
possibilities of achieving program goals
development, implementation, and monitoring of the execution of
management decisions
The mechanism for monitoring program implementation consists of the
following elements:
preparation of annual reports on progress made in carrying out
basic program activities, financial resources expended, and the
degree to which results obtained correspond to the expected
outcome
presentation of reports to the leadership of Minatom, SRMAE, and
RAEP so that they can be jointly discussed and the appropriate
corrections can be made in the program
The industry commission includes an information service and management
group that analyzes the status of work and prepares information for
decision making and operational management of program implementation.
One of the most important organizational-economic conditions promoting
successful implementation of the program is its inclusion in the
Federal Targeted Program of Employment Assistance to the Population
for 2002–2005 and the distribution of the corresponding forms of
state support to the enterprises participating in realization of the
program.
