The Russian Ministry of Labor has concluded agreements with 79 regions to create temporary jobs for citizens who have lost their jobs or are at risk of dismissal. Thus, more than 90% of the subjects of the federation will take part in the program. This is stated in the message of the department, published on Tuesday, August 11. 

“Regional employment centers conclude labor agreements with employers to create temporary jobs. Payments for temporary employment and employment in public works by government order are no more than 3 months, ”the ministry said. 

The government allocated more than 4 billion rubles from the reserve fund for this initiative. The money will be used to partially reimburse employees' wages. The Sverdlovsk and Rostov regions, the republics of Tatarstan and Bashkiria, the Perm and Krasnodar regions will receive the greatest financial support.

The decision of the authorities will enable Russians who have lost their jobs due to the pandemic to keep their income and continue to provide for themselves while looking for a new permanent job. This opinion is shared by Pavel Sigal, vice-president of the all-Russian public organization of small and medium-sized enterprises "Support of Russia".

“First of all, the funds will be used to preserve those jobs that enterprises could no longer support due to lack of funding. In addition, the regions will create additional vacancies in the field of housing and communal services, landscaping, social services, as well as in agriculture and construction. At the same time, citizens will be able to continue to receive unemployment benefits. Such a scenario will significantly slow down the decline in employment in the country and at the same time provide financial support to the population, "the expert told RT.

According to Rosstat and the Ministry of Economic Development, as early as March, the unemployment rate in Russia was about 4.5%, but by the end of June the value increased to 6.2%. However, according to experts, measures to preserve employment and soft loans to businesses have avoided a more serious weakening of the labor market.

As the Minister of Economic Development Maxim Reshetnikov said earlier, the concessional lending program at 2% per annum alone supported more than 3 million jobs. The money received by the business was to be used to pay salaries to staff at the rate of one minimum wage (12 130 rubles) per employee. The loan itself can be partially or fully written off if employers keep their jobs. In total, within the framework of various programs to help entrepreneurs, the government allocated more than 1 trillion rubles, which were spent on keeping the staff in companies. 

In general, financial support from the state helped to save about 10 million Russians from dismissal. This point of view in a conversation with RT was expressed by the director of market analytics for the resource podelu.ru Lilia Fedulina. According to the expert, the creation of temporary places will prevent further growth of unemployment among the most vulnerable segments of the population. 

“This initiative has become another measure in the comprehensive assistance of the state to the industries that have suffered the greatest losses from the consequences of the pandemic. According to our forecasts, the government's actions will lead to a decrease in the unemployment rate and by the end of 2020 the figure will not exceed 5%, ”the analyst said. 

At the same time, the gradual stabilization of the labor market should lead to an increase in consumer activity of Russians and thereby stimulate the consumer demand that has sagged in recent months. This opinion was expressed in an interview with RT by Georgy Ostapkovich, director of the Center for Market Research at the Institute for Statistical Studies and Economics of Knowledge, NRU HSE.

“Creation and preservation of jobs can become one of the drivers of the rapid recovery of consumer demand in the country. Russians with a stable income will spend more money on everyday needs and entertainment. Due to the growth of domestic consumption, key sectors of the economy are developing, which, as a result, has a positive effect on GDP, ”the expert noted. 

According to the forecast of the Ministry of Economic Development and Trade, due to the consequences of the coronavirus pandemic in 2020, Russia's GDP may decrease by 4.8%. But by the end of next year, the pace of economic growth should return to pre-crisis levels, the department notes. 

According to Georgy Ostapkovich, in 2021, the country's GDP will show compensating growth within 2.5%, and in 2022 it may add about 3.5%. In many respects, the recovery of the indicator will be associated precisely with the preservation of unemployment at a low level and support for enterprises. 

“The development and smooth functioning of companies is one of the leading engines of the economy. With a full staff, enterprises will produce more goods and services, which will give additional percentages of GDP growth. Therefore, the government will continue to provide assistance to businesses for several more years. And the accumulated gold and foreign exchange reserves in the amount of $ 590 billion allow this to be done, ”concluded Ostapkovich.