Russian Economy Dramatically Impacted by Economic Downturn

Yevgeny Volk /

Hundreds of Russians queue outside an office of a state-run employment company in central Moscow 25 November. Russian unemployment could be running at more than eight million, a government minister admitted earlier this month, though the official figure is much lower because millions of jobless have slipped through the social net. Hundreds of thousands of Russians are believed to have lost work during this year's financial crisis, the majority of them in Moscow.

Unemployment is increasingly raising its profile in Russia’s crisis-hit economy. Last March it was at a record 40-percent high. The official data show that its level over the first quarter jumped from 6 to 7.5 million people, which is around 10 percent of Russia’s labor force. According to independent assessments, unemployment could well be even higher – 7.8-8.5 million.

The authorities have responded to a sharp increase in the numbers of those laid off in a purely bureaucratic manner. If the government dislikes certain statistics, it only needs to suppress the actual picture. On the order from on high the Russian statistics agency (Rosstat) discontinued its monthly publication of unemployment data. Now, the statistics is to be made public once every quarter. (more…)