In July 2021, the unemployment rate in Russia according to the methodology of the International Labor Organization (ILO) dropped from 4.8% to 4.5%.

The achieved figure was the lowest since September 2019.

This is evidenced by Rosstat data.

“The number of workers aged 15 and over in July 2021 amounted to 75.5 million people, of which 72 million people were classified as employed in economic activities and 3.4 million people were classified as unemployed, meeting the ILO criteria (i.e. not had a job or profitable occupation, were looking for a job and were ready to start it in the surveyed week), ”the department's report says.

As the Minister of Labor and Social Protection of the Russian Federation Anton Kotyakov emphasized on the sidelines of the Eastern Economic Forum, the labor market in Russia has returned to the pre-pandemic level.

Recall that unemployment in Russia began to grow noticeably in 2020 amid the consequences of the coronavirus pandemic.

Then, from March to August, the corresponding indicator jumped from 4.7% immediately to 6.4%.

The achieved value was the highest in the last eight years.

“The temporary introduction of quarantine restrictions last year, in fact, led to a forced shutdown of the economy.

Under these conditions, many people were unable to work, as a result of which the general situation in the employment sector worsened, "Nikita Maslennikov, head of the Finance and Economics department at the Institute of Contemporary Development, said in an interview with RT.

It is noteworthy that already in December 2020, the unemployment rate in Russia dropped to 5.9%, and by June 2021, it dropped below 5%.

On behalf of the country's President Vladimir Putin, the government was to achieve full employment recovery only by the end of 2021.

However, the revival of the labor market is happening much faster than expected, said Anastasia Uskova, CEO of the Rocket Work platform, in a conversation with RT.

“The main reason for this dynamics is the slow but sure recovery of small and medium-sized businesses, which account for a fifth of all jobs in the country.

There are no serious quarantine restrictions, so consumer demand in the domestic market is growing.

This instills optimism in companies, and they are more willing to hire employees, ”explained Uskova.

At the moment, the total number of unemployed Russians officially registered in employment centers is also significantly decreasing in the country.

So, if at the beginning of 2021 there were over 2.7 million such citizens in Russia, then by the end of July the figure had more than halved - to 1.11 million, as evidenced by the data of the Ministry of Labor and Social Protection.

The authorities' measures to support entrepreneurs also provide significant support to the employment sector.

Svetlana Bessarab, a member of the State Duma Committee on Labor, Social Policy and Veterans Affairs, shared this opinion in an interview with RT.

“For example, the authorities have launched a fairly effective business subsidy program.

The initiative helps to improve the situation on the labor market, since when hiring unemployed citizens, enterprises can receive compensation from the state in the form of three minimum wages, ”the MP said.

In addition, in February 2021, Vladimir Putin approved the launch of a new concessional lending program for businesses.

From March 9 to July 1, enterprises could obtain a loan at a rate of 3% per annum for a period of 12 months.

The business should send the money received to pay salaries to staff at the rate of 1 minimum wage (12,130 rubles) per employee.

In total, the initiative is designed for 75 thousand companies, which employ about 1.5 million people.

For the benefit of the economy

According to Anastasia Uskova, now the most intensively employment is growing in the retail trade, hotel and restaurant business amid softening of restrictive measures.

In addition, the demand for personnel in construction is actively growing due to the extension of the preferential mortgage program, as well as in the extractive industry and the agricultural sector due to an increase in export volumes. 

“In addition, the seasonal factor multiplied by the shortage of labor migrants has an impact on the decline in unemployment rates.

In order not to incur losses, employers in the field of construction, services, housing and communal services, the agricultural sector raise wages and improve working conditions, as a result of which our compatriots occupy vacant places, ”Uskova added.

As the expert emphasized, the growth in the number of self-employed in Russia also has a positive impact on the labor market.

According to Uskova, today the number of those wishing to pay tax on professional income has approached 3 million. On average, more than 5 thousand Russians receive self-employed status every day.

  • A visitor talks to an employee at the Moya Work employment center on Shchepkina Street in Moscow

  • RIA News

  • © Alexey Kudenko

According to Nikita Maslennikov, keeping the unemployment rate close to the current values ​​and the provision of skilled labor will give businesses additional space for future growth, which has a positive effect on the economy.

Anastasia Uskova has a similar opinion.

“The decline in unemployment will lead to the stabilization of household incomes and domestic demand, which will have a favorable effect on business income, give it the opportunity to grow and saturate the economy, increasing its contribution to GDP.

In addition, the order in the business segment contributes to the increase in tax collection.

Globally, the fewer the unemployed, the less spending on social benefits from the budget and the more receipts in the form of personal income tax to the treasury, ”the specialist concluded.