The private sector is growing to the detriment of state-owned companies, which have ceased to be the economic engine
14ymedio, Madrid, July 24, 2024 — Despite the obstinacy of the authorities in qualifying the socialist enterprise as the “main mover of the Cuban economy,” the data are stubborn: the only sector in which employment is growing is the private sector. In 2023, there were 13% fewer public workers than in 2020 (from 3,094,300 to 2,688,400), while in the non-state sector there were 4.4% more (from 1,549,300 to 1,618,500). In total, the workforce decreased by 7.2% in the last three years, from a total of 4,643,700 workers to 4,306,900.
The improvement is attributable to the MSMEs, since cooperatives decrease by 7.5%, and within the private businesses, self-employment also decreased, representing almost half, which is a 4% decrease compared to four years ago. The workers of these companies in 2023 numbered a little more than 548,000, which was the year they increased by 16%, three percentage points more than for 2021 and 2022.
The data, published in the employment and wages section of the 2023 Yearbook of the National Office of Statistics and Information (ONEI), make it clear that the loss of workers in the state sector is much higher than the decrease in the number of people who work in Cuba. And it is not surprising if we look at the average monthly salaries, which are dramatic.
In 2023, there were 13% fewer public workers than in 2020 (from 3,094,300 to 2,688,400)
In 2023, a Cuban worker earned an average of 4,648 pesos a month, less than what three kilos of powdered milk costs today with the capped prices, or seven kilos of chicken meat. Cuban economist Omar Everleny Pérez estimated last March that the cost of a monthly shopping basket in Cuba, with a selection of 17 basic products in moderate quantities at the prices recorded by ONEI, was around 10,000 pesos.
The situation is more serious if you take into account that the data include joint ventures, where workers earn much more than in state-owned companies. This is, in all likelihood, one of the factors that pushes wages up the most if it is distinguished by sectors. The highest is that of mines and quarries, which pay 7,717 pesos on average. Considering that many of these employees earn more through the joint venture with Canadian Sherritt, it is to be expected that others will not want to work for the State, where they would receive a miserable salary.
The second sector in the table (7,041 pesos), supply workers (water, gas and electricity) benefit – some of them – from being hired by the Cuban-Canadian Energas joint venture. As for electricity, the Electric Union of Cuba (UNE) promises salaries of up to 9,000 and 12,000 pesos, confirmed by 14ymedio, during a job fair organized by the state company, desperate to hire staff to solve one of the most serious problems for the stability of the Government: the blackouts.
Next come construction employees (6,260 pesos), business and real estate services (6,102), financial negotiating (5,926), fishing (5,842) and science (5,739). We have to go through various other activities to reach the lower area of the table, which begins with health workers.
The situation is more serious if we take into account that the data include joint ventures, where workers earn much more than in state-owned companies
The most honored employment on the Island, with a recognized international prestige, pays tiny salaries, with an average of 4,222 pesos, which is incomprehensible even taking into account that the sector includes doctors, in addition to assistants and social services personnel. There are only four worst-paid activities: commerce (the leader, with 3,760 pesos per month), municipal (3,813), culture and sports (3,961) and the other jewel in the crown, education, the fourth worst-paid sector on the Island, with just 3,932 pesos, which buys little more than, for example, a single five-pound pork loin.
Also noteworthy is the fact that the staff of hotels and restaurants, in which so much money is invested, barely earn 4,564 pesos per month, although those who are in contact with foreign tourists live mostly from tips.
The demographic issue is not trivial either. By age, it is alarming to note that 50% of the total number of workers are in the 40 to 59 age group. These are 2,150,200 employees out of the 4,306,900 total, but to this are added those included in the group of ages 30 to 39, which are 23.7% (1,022,700). Meanwhile, young people (from 20 to 29) account for a small 15%, little more than those over 60 (10%). The remaining 1.3% is for the almost 40,000 young people aged 17 to 20, figures that confirm the aging of the Cuban workforce.
Consequently, public spending on pensions in 2023 amounted to 38,604,900,000 pesos, of which almost 37 billion were received for reasons of age, disability or death (95.7%), 7,000,000 for partial disability and 1,656,100,000 for maternity (4.3%).
Also noteworthy is the fact that the staff of hotels and restaurants, in which so much money is invested, barely earn 4,564 pesos a month
Despite the fall in population — last Friday the Government acknowledged a population of fewer than 10 million at the end of 2023 — the number of social security beneficiaries has increased by more than 5% compared to 2020. According to the Cuban demographer Juan Carlos Albizu-Campos, who has carried out an independent study that lowers the Cuban population to 8.62 million people, between 2022 and 2023 alone, the Island lost 18% of its inhabitants. However, according to ONEI, there are 3% more pension beneficiaries, the umpteenth figure consistent with the migration of young people.
In addition, the workers who leave Cuba to look for decent wages must contribute to the maintenance of the 1.57 million pensioners of the Island, since the average amount of this benefit is only 2,075 pesos, barely enough for one kilo of detergent with the capped prices.
Translated by Regina Anavy
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