Labor Ministry Predicts Sharp Increase in Unemployment in Russia

Labor Ministry Predicts Sharp Increase in Unemployment in Russia

Photo: https://lenta.ru/

According to Anton Kotyakov, Minister of Labor and Social Security of Russia, the number of officially unemployed Russians might reach 2.5 mln people in the future. According to the calculation methodology of the International Labor Organization (ILO), the total number of the unemployed is likely to be almost twice as large, that is, about 5 million people.

Since the start of the global pandemic of the novel coronavirus, it might seem that Russia would escape it. Only a few cases were registered here, and mostly, they were imported. Today, it is obvious that these judgments were extremely deceptive. As of June 1, there were 423,731 cases in Russia. So, the country has taken the second place in the world by the amount of infected residents.

Anyway, even before any negative statistics appeared, the Russian authorities started taking a number of restrictive measures in order to prevent the spread of COVID-19. Thus, throughout the second half of March and the whole of April the Russians had “non-working days.” Lockdown regulations and requirements for wearing face masks were introduced in the every region where these measures were needed.

But apparently, as the situation has not stabilized, they were not truly effective. In addition, many residents lost their jobs and stable incomes during this period that led to growing tension in the country.

The Russian Ministry of Labor also admits the problem, saying that a sharp increase in unemployment might hit the country. According to the Ministry, since the beginning of this year the total number of officially unemployed Russians has increased, and now it is estimated at 1.6 mln people. Moreover, according to Anton Kotyakov, in May and June, the unemployment in Russia is likely to grow.

“The total number of unemployed residents who are officially registered at employment centers has reached 1.6 mln,” Kotyakov said on air in an interview with Vladimir Posner, the host of a primetime talk show. “We are considering different scenarios. Taking into account the forecast data that are available to us at the moment, it can be said that during May and June the growth will continue.”

He believes that the number of officially unemployed residents might reach 2.5 mln people in the future. According to the calculation methododology of the International Labor Organization, the total number of unemployed Russians is likely to be almost twice as large, that is, about 5 million people.

Meanwhile, Kotyakov recalled that families with children would receive a total of more than 100,000 rubles ($1,413) as state aid in the next three months.

By the way, similar forecasts have been made by Oleg Shein, the State Duma deputy from A Just Russia party and Vice President of the Confederation of Labor. In his opinion, chances are by 2023 youth unemployment will significantly increase in Russia. According to him, the economic crisis in the country might be aggravated by the fact that young people born in the 2000s are expected to flow into the Russian labor market in great numbers. Meanwhile, the number of jobs is highly unlikely to grow. A lot of additional workers might be looking for a job, since they have been recently deprived of the right to retire after an extension of retirement age, complained Shein.

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