There is a “hidden unemployment” in Russia

Unemployment rate at a historic minimum but companies work hours and discreetly cut the number of employees.

Looking at the unemployment rate in Russia, which is in historical minimums, it seems good news for the Russian economy. But this is just part of the story.

Russia is facing Two problems in the job marketwhich seem contradictory: a increased “hidden unemployment” and one labor shortage in the long run.

The president Vladimir Putin recognized This week the trend, stressing that there are increasing workers in “inactivity time”, to work part -time or at risk of dismissal as companies reduce operations.

Official data show that the number of people in these conditions has doubled since the early 2025, from 98,000 in January to almost 200,000 in early August.

Large employers like Avtovaz – a manufacturer of the best -selling car brand in Russia – pondered weeks of shorter work after a drop in sales. Similar reductions have been recorded in the sectors of transport, heavy industry and retail trade, where the closure of car dealers has caused job losses.

This is the “Hidden unemployment”: Companies reduce working hours and discreetly cut the number of employees, summarizes the.

Regional authorities, including those from the Sverdlovsk region, admitted “Changes in the economy” that require the reduction of schedules or staff.

A Central Bank report, published in July, revealed an increase in the proportion of companies to plan personnel cuts from 6.9% in January to 11.5% in June.

In parallel, the demographic decline is weakening long -term work force.

Birth rates in 2024 have fallen to the lowest level since 1999, while the war in Ukraine has aggravated losses through casualties on the battlefield and the exit of qualified professionals.

The Macroeconomic Analysis and Short -term forecast center warned a Investment travel away from the private civil sector, with the growth concentrated in state -supported industries.

Although the official unemployment rate remains low, in 2,2%, The number of registered unemployed increased from 274,000 in January to 300,000 in August. Putin appealed to a rapid government action to avoid an “excessive cooling” of the economy.

The economic context shows signs of weakening.

The growth of Commence Surrounded it to 1.1% in the second quarter, compared to 1.4% in the first, and well below the 4% recorded in the same period last year.

The recipes of oil e gas – A crucial source of war financing – have fallen due to the low in Crude prices.

However, there are frequent interruptions on the Internet, related to safety measures against Ukrainian drone attacks – which affect affecting the digital economy, making it difficult for payments and services online.