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Cuba eyes more self-employment as massive layoffs loom - Cuba - Business - employment

Cuba eyes more self-employment as massive layoffs loom

President Raul Castro expanded self-employment fields on Sunday, ahead of looming government plans to slash as many as one million jobs -- 20 percent of communist Cuba's work force -- from state payrolls.

Breitbart.com | Published: 08/02/2010 09:53

The economy, 95 percent of which is currently in state hands, does not have the ability to absorb such vast numbers of jobless. Castro's move aims to try to reduce the socioeconomic fallout, but it will be an uphill battle.

The Council of Ministers "agreed to expand the range of self-employment jobs, and their use as another alternative for workers who lose their jobs," Castro said as he gave a closing address at one of two annual sessions of the National Assembly.

After the crash of the former Soviet bloc, Cuba's cash-strapped government in the 1990s approved a wide range of self-employment. Positions such as beauticians, dog groomers, small restaurant owners and even lighter refillers were legalized as long as workers got licenses and paid taxes.

But social resentment emerged as an issue when some workers, particularly in small private restaurants, achieved dramatic levels of success.

The government began increasing taxation and regulation, and decreasing license-granting, until the self-employed sector was largely rendered paralyzed, like the rest of the economy.

Read more on Breitbart.com... 

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