The growth of employment in the 1960-69 period varied widely among the
different industry branches. Whereas the number of employed rose by 60
percent for centrally administered industry as a whole, it increased by
almost 2.4 times in the chemical branch, somewhat more than doubled in
the production of cellulose and paper, and grew by 80 percent in
nonferrous metallurgy and in machine building and metalworking. The
lowest increases in employment occurred in the production of fuels, in
ferrous metallurgy, and in the manufacture of glass and china. The
increases in employment did not necessarily correspond to the priority
ratings of the individual branches; high priority branches received
relatively much larger investment.
The labor force is numerically redundant but qualitatively inadequate
for the needs of modern industry. Despite the existence of labor
training programs, there is a shortage of skilled personnel at the
intermediate level, such as technicians and foremen. Few workers have
professional school training; most acquire their skills through short
courses or on-the-job training. The number of skilled workers is too
small to allow efficient two-shift operation of plants throughout most
of industry. The lack of adequate skills and the associated inept
handling and poor maintenance of imported sophisticated machinery have
been responsible for frequent breakdowns. The resultant work stoppages
and the under-utilization of available capacity have had a deleterious
effect on productivity.
Because of a high rate of investment and large-scale imports of advanced
Western technology and equipment, productivity per worker nevertheless
has been rising at a relatively rapid rate. According to official data,
productivity in industry increased by an annual average of 7.5 percent
in the 1960-69 period, but the increase in 1969 was less than 5 percent.
Official plans for the 1971-75 period call for an annual growth in
productivity of at least 7.3 percent. Western economists, however,
estimated the rise in productivity to have been only 5.6 percent per
year in the 1960-67 period, compared to an official figure of 8 percent.
Despite the impressive gains, productivity in industry remains low,
mainly because of the inadequate qualifications and work habits of the
labor force and the shortcomings of industrial organization and
management.
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