Ministry of Health and Social Development, Russian

Federation

Labour Market and

Employment In The Russian
Federation
 Russia’s National Social and Economic
Development: Results and Prospects
By 2006 steady upward trends of social and
economic development have taken shape:
 Annual industrial growth rate in 2003-2006 has
averaged 6-7%;
 In 2003-2005 general unemployment has dropped
from 8.6% to 7.6% of economically active
population;
 In 2003-2005 the number of people with incomes
below the minimum of subsistence has decreased
by 8.4% and came to 15.8% in 2005
 Active Economic Policy

 The primary goals of Russia’s economic policy are:

 Implementation of the priority national and state
investment projects;
 Creating special economic zones, facilitating the
development of innovative and high-tech industries;
 Facilitating the development of small business sector.

 It is necessary to secure both modernized and newly

created jobs with needed skilled workforce.
 Positive Trends of the Labour Market
Development
 Employment growth.
Economic restructuring, increasing investments and
consumer demand growth have caused the
growing demand for labour force: in 2003-2005
the number of those employed has increased from
66.1 to 69.2 mln. people.
 Decreasing general unemployment.
The total number of those unemployed has dropped
from 6.2 to 5.4 mln. people.
 The Labour Market’s Functioning: Major
Challenges
 Geographic mismatch between demand and supply in the
labour market.
 Decrease in population of workable age.

 Changes in the structure of workable age population:

ageing of economically active part of population.
 Insufficient professional and geographic mobility of the
workforce.

 Structural mismatch between demand and supply in the

labour market.
 Russian Labour Market in 2006.

 The number of economically active population has reached

74.6 mln. by August 2006 (according to ROSSTAT,
Russian State Statistical Agency).

 69.2 mln. people employed in the economy, 5.4 mln.

unemployed (7.3% of economically active population).
 Russian Labour Market in 2006 .

80

68,9 69,2
67,2 67,7
70 65,3 65,2 66,3

60

50 number of
unemployed
млн.чел

40 number of
employed

30

20

10 7 6,2 6,1 5,6

5,7 5,2 5,4

0
2000 2001 2002 2003 2004 2005 2006 )
 The Number of Unemployed
 2006 was marked by the downward trend in general and
registered unemployment. This trend reflects the positive
dynamics of the overall economic situation in Russia.
 According to ROSSTAT 1.7 mln. unemployed have been
registered by state employment agencies by July 2006.
 5.4 mln. people had no jobs but were actively searching
for employment (7.3% of economically active population).
According to the ILO approach this category can be
classified as unemployed.
 The Number of Officially Registered
Unemployed
4,00
3,6
3,50

3,00 2,9
2,9 2,3
2,50
mln.people

2,00
1,63 1,83 1,8 1,9 1,70
1,50
1,57 1,6
1,00
1,85
1,2
1,1
0,50

0,00
2000

2001

2002

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006 June
 Officially Registered Unemployment
 In 2006 the number of unemployed, registered by
employment agencies, has stabilized, reaching 1.7 mln. by
July 2006.

 Accordingly, the registered unemployment rate (ratio

between registered unemployed and economically active
population) was 2.4% by June 2006.
 The Mismatch Between Professional and
Qualification Structure
 In spite of substantial unemployment, Russian businesses
have encountered the problem of skilled workforce
shortage: state employment agencies have over 1 mln.
vacancies unfilled.
 Therefore the major current problem of the Russian
labour market are the existing disproportions of both
professional and qualification structure of demand and
supply.
 Population’s Employment
 The employment situation, marked by seasonal
fluctuations, has slightly improved in 2006.
 The number of unemployed in the economy,
according to ROSSTAT, has reached 69.2 mln. in
early August 2006.
 The largest shares of those employed are
registered in processing sector (17.3% of all
employed in the economy), wholesale and retail
trade (16.7%).
 Population’s Employment
 The decrease of both registered and general
unemployment rates in 2006 (as compared with the
previous year) was caused mainly by overall economic
growth, indicated by the GDP growth (6.4%) and
industrial growth (4.4%). Accordingly, that allowed to
create additional new jobs.
 One more positive factor that influenced the
unemployment reduction, was implementation of the
national projects in the areas of healthcare, education,
housing construction and agriculture. The
implementation of the national projects gave impetus to
the creation of new efficient jobs in the above-mentioned
sectors, as well as in those connected with them.
Employment of Citizens, Searching for Jobs
 The number of newly employed citizens (who found gainful
employment) by the beginning of 2006 was 2 mln. persons. That
makes 64.5% of all applicants to the state employment service.
 As a result of interaction with employers, the national pool of
vacancies (vacant jobs and posts) was growing month by month. In
January 2005 employers registered 334.000 vacancies, while by the
end of the same year – 792.000 vacancies.
 Qualitative structure of vacancies remains unaltered: among workers
occupations professions most demanded by employers are truck and
car drivers, metalworkers, engine operators, welding specialists,
salespeople, electricians. Among other most demanded professions
were physicians, policemen, engineers, accountants, inspectors.
Providing Jobs for Those Who Search for
Employment

7,0 6,6 6,4

6,0 6,0
6,0 5,5

5,0 4,7
4,0 4,2 4,0
3,7 3,9
4,0 3,5
mln.people

3,1
3,0
2,0
2,0

1,0

0,0
2000 2001 2002 2003 2004 2005 2006 (
January-
June)
Job seekers registered found jobs
 The Goals of Public Policy in the Field of
Labour Market Regulation

 Facilitating the realization of citizens’ rights to

freely dispose of their labour skills; for decent
work in a feely chosen profession.
 Ensuring the realization of citizens’ right for
protection against unemployment.
 Ensuring the observance of rights in the area of
labour protection and compensation, combating
working people rights’ violation (including forced
labour and discrimination).
 Facilitating the provision of labour force to
employers in numbers required and of skills
needed.
 Main Directions of Public Policy in The Field
of Labour Market Regulation
 Modernizing labour and employment legislation.
 Organizing the labour market monitoring
system.
 Ensuring the balance between vocational
training and demand for workforce.
 Facilitating the increase of workforce
geographic mobility.
 Optimizing the influx of labour migrants.
 Stimulating the population’s economic activity.
 Improving the quality of jobs.