Unemployment in Russia has fallen to the lowest level in the post-Soviet period
Economists forecast unemployment in Russia at 5.6 percent by the end of the year, the previous forecast was 6.5 percent
Unemployment in Russia has fallen to the lowest level in the post-Soviet era, despite tough Western sanctions over the attack on Ukraine. Azad Europe/Radio Liberty correspondent Tod Prince writes about the reasons for this.
At the same time as the financial and technological sanctions of the West, a number of companies employing hundreds and sometimes thousands of Russians left the country.
Despite all this, in May, unemployment in Russia fell to the lowest level of the post-Soviet era – 3.9 percent, and remained at this level in June. this is Europe Much lower than the average indicator in the Union, USAIt is not much bigger than 3.6 percent in .
A number of experts explain the low rate with declining demographic trends, reductions in working hours and wages relative to jobs, and experience in managing economic upheavals.
The occupation of Ukraine against the backdrop of the mass outflow of labor force from Russia, unstable jobs being done mostly by migrants from Central Asia, moreover, the involvement of more forces in the war also played a significant role in keeping the unemployment level at a low level.
It is expected that the number of jobs will decrease in the fall village due to the end of seasonal work in the agriculture, construction and tourism sectors, and the deepening of the recession caused by sanctions.
However, at the end of the year, many unemployment in Russia Europe it is predicted to remain lower than that of other countries.
“The fact is that the Kremlin, employers, and the population are very well used to the economic crisis. Very well developed employment system and social support keeps unemployment low,” – Founder of Macro-Advisory consulting group Chris Weaver He told RFE/RL.
Rich in resources Russia Vladimir Putinin 2000-20He experienced a great economic boom during his presidency in 2008. This was also boosted by the high price of oil and gas in the world. Subsequently, the country faced economic panic four times: 2008-2009 global financial crisis; In 2014, the first round of Western sanctions and the sharp drop in energy prices due to Russia’s aggression in Ukraine; The 2020 COVID pandemic and the large-scale attack on Ukraine on February 24 this year.
But the government every time potential political has accumulated experience in solving problems with effects, including unemployment. Vifer says that government agencies social they are seriously engaged in preparing workplaces to maintain stability.
“Kremlin has always been afraid of unemployment in the regions and immediately focuses on opening jobs there and providing subsidies to employers,” – says the expert.
Labor the minister Anton Kotyakov On August 15, he told “Rossiyskaya Gazeta” that the unemployment rate is rising Russia will depend on their companies finding alternatives to Western goods and Western markets. According to him, the government subsidizes companies to hire vulnerable people.
“This is manual management of the economy, important when there is a component of uncertainty,” – said the minister.
Companies leaving Russia have mostly kept the salaries of Russian workers. USAMcDonald’s company had 62,000 employees in Russia, and sold its business to a Siberian entrepreneur with the condition of keeping the employees for at least two years.
“Even if McDonald’s wants to return to Russia, they will welcome him and help him. Because he went the right way and protected his jobs.” – Vifer emphasizes.
According to a report released in June, foreign firms employing 350,000 people, or 0.5 percent of the total workforce, have either suspended or limited operations in Russia.
Economists forecast unemployment in Russia at 5.6 percent by the end of the year, the previous forecast was 6.5 percent.
On the other hand, about 40 percent of Russians work in state, state-owned, or government-related private companies. And they are not inclined to reduce the number of employees in difficult times.