One aim of the Soviet Union, and communist countries in general, was to achieve full employment. Official policy was designed to prevent unemployment, and the state stopped paying most unemployment benefits in the 1930s. Every citizen had the right (or requirement) to work, and jobs were allocated by the state, not competed for as they were in the west. People could apply for certain positions, based on their education, experience, or interests, but roles could often be distributed to meet employment demands, or preferential roles were distributed via nepotism. The socialist economic system removed job market competition, which provided increased job security but removed many of the incentives that boosted productivity (especially in later decades). In the 1970s and 1980s, average work weeks were under 35 hours long and people retired in their mid to late fifties. Compared to the U.S. in 1985, on average, work weeks were around four hours shorter in the USSR, and Soviet men retired five years earlier, while women retired nine years earlier than their American counterparts.
Wages
In earlier years, wages had been tied to individual performance or output, however the de-Stalinization process of the 1960s introduced a more standardized system of payment; from this point onwards, base wages were more fixed, and bonuses had a larger impact on disposable income. Personal finances in the Soviet Union were very different from those in the west; wages were split into base salaries and bonuses, along with a social wage that was "paid" in the form of investments in housing, healthcare, education, and infrastructure, as well as subsidized vouchers for holidays and food. Many of these amenities were also provided by the state, which removed the individual costs that were required across the west and in post-Soviet states today. Overall, income and money in general had a much lower influence on daily life in the USSR than it did in the west, lessening factors such as financial stress and indebtedness, but restricting consumeristic freedom.
Gender differences
A major difference between the East and West Blocs was the participation rate of women in the workforce. Throughout most of the USSR's history, women made up the majority of the workforce, with a 51.4 percent share in 1970, and 50.4 percent in 1989; in the U.S. figures for these years were 38 and 45 percent respectively. Although this was due to the fact that women also made up a larger share of the total population (around 53 percent in this period), Soviet women were possibly the most economically active in the world in these decades. When comparing activity rates of women aged between 40 and 44 across Europe in 1985, the USSR had a participation rate of 97 percent; this was the highest in the East Bloc (where rates ranged from 85 to 93 percent in other countries), and is much higher than rates in Northern Europe (71 percent), Western Europe (56 percent) and Southern Europe (37 percent).
Total employment in the Soviet Union in select years between 1970 and 1989, by gender
(in thousands)
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US Census Bureau. (August 1, 1991). Total employment in the Soviet Union in select years between 1970 and 1989, by gender (in thousands) [Graph]. In Statista. Retrieved December 03, 2024, from https://www.statista.com/statistics/1249701/soviet-employment-by-gender-cold-war/
US Census Bureau. "Total employment in the Soviet Union in select years between 1970 and 1989, by gender (in thousands)." Chart. August 1, 1991. Statista. Accessed December 03, 2024. https://www.statista.com/statistics/1249701/soviet-employment-by-gender-cold-war/
US Census Bureau. (1991). Total employment in the Soviet Union in select years between 1970 and 1989, by gender (in thousands). Statista. Statista Inc.. Accessed: December 03, 2024. https://www.statista.com/statistics/1249701/soviet-employment-by-gender-cold-war/
US Census Bureau. "Total Employment in The Soviet Union in Select Years between 1970 and 1989, by Gender (in Thousands)." Statista, Statista Inc., 1 Aug 1991, https://www.statista.com/statistics/1249701/soviet-employment-by-gender-cold-war/
US Census Bureau, Total employment in the Soviet Union in select years between 1970 and 1989, by gender (in thousands) Statista, https://www.statista.com/statistics/1249701/soviet-employment-by-gender-cold-war/ (last visited December 03, 2024)
Total employment in the Soviet Union in select years between 1970 and 1989, by gender (in thousands) [Graph], US Census Bureau, August 1, 1991. [Online]. Available: https://www.statista.com/statistics/1249701/soviet-employment-by-gender-cold-war/