Number of Armenia`s government employees to be reduced by 2902 people in 2016-2017

ArmInfo. Within the state apparatus optimization process it is planned to reduce the number of employees by 2902 people. "We should ensure that professionalism and quality of work are correlated with salary of an employee", Prime Minister of Armenia Karen Karapetyan stated at the press conference on January 13.

According to the Prime Minister as a result of optimization the government intends to spend funds on those employees, who ensure results. In overall the number of state employees will be reduced to 20059 people instead of 22961 in 2016- 2017, in the ministries and agencies the number of employees will total 5195 versus current 5793, in non-commercial state organizations and state companies the number will reduce by 2304 (from 17168 to 14864). In overall it is planned to save 5.360 bln drams (nearly $11 mln) annually. "Some can point at the social aspect of the issue-reduction of job places. But on the other hand, we will receive more efficient state apparatus, duties will not be duplicated any more, and as a result the state machine will work more efficiently", the Prime Minister said.  To note, nominal salary growth rates in Armenia slackened from 8.5% in Jan- Nov 2015 to 2% in Jan-Nov  2016, totaling AMD 184796 (USD 385). Only in November salary decreased by 0,1% versus 0,3% growth in Nov 2015.  In Nov 2016, compared to Nov 2015, the nominal salary growth slackened- to 0.7% in Nov 2015 versus 3.8% in Nov 2014.  According to the preliminary data of the National Statistical Service of Armenia, the salary at the state-run enterprises for Jan-Oct 2016 totaled 159,413 AMD ($332), dropping by 1.2% versus 9.7% growth a  year before. The salary in private organizations slackened growth by 4.4% from 7.1% to 218,173AMD ($454). In Nov alone, the salary at the state- run enterprises increased by 0.1%, amid 0.2% decline of salary at privately owned enterprises. For comparison, in 2015 growth rates in two sectors were almost equal -0.4% in state-run enterprises and 0.3% in privately-owned ones, the same figures were registered in 2014.