The Associated Press: Cuba to cut 500,000 gov't workers, reform salariesCuba announced Monday it will cast off at least half a million state workers by early next year and reduce restrictions on private enterprise to help them find new jobs — the most dramatic step yet in President Raul Castro's push to radically remake employment on the communist-run island.
Castro suggested during a nationally televised address on Easter Sunday that as many as 1 million Cuban workers — about one in five — may be redundant. But the government had not previously laid out specific plans to slash its work force, and the speed and scope of the coming cutbacks were astounding. Cuba's official work force is 5.1 million — meaning nearly 10 percent of all employees could soon be out of a government job.
Eventually the state will only employ people in "indispensable" areas such as farming, construction, industry, law enforcement and education.
Huge news out of Cuba that will have an incredible impact on the future of that country. It will certainly create short-term difficulties for the 10-20% of the population that will lose their jobs, but if this leads to increased economic freedom, it should help the country as a whole in the long term.