Lyubov Filin, Head of Evidence-Based Regulatory Practice Department at the Gaidar Institute, commented for Vedomosti that the rise in hidden unemployment in Russia became noticeable in recent months. She linked this to lower demand in key industries, such as the auto industry, transportation, and trade.
"The main reasons lie in the fact that in a number of key industries—the automotive, transport, and trade industries—demand has fallen significantly, companies are forced to cut jobs and reduce their expenses, and the situation is exacerbated by the slowdown in economic growth, demographic decline, the brain drain, and the shift of investment to the military sector, which has left private businesses short of resources and specialists," Lyubov Filin emphasized.
According to the expert, the number of people who are idle, working part-time, or at risk of losing their jobs has almost doubled since the beginning of the year and now stands at around 200,000. Lyubov Filin noted that the duration of this trend depends on a number of factors, including growth in economic demand and support for business.
“If demand in the economy does not start to grow and businesses do not receive new opportunities, the number of such workers (unemployed) may increase for several quarters in a row. The state's response — measures to stimulate demand, support employment, and strengthen the private sector — will significantly determine how quickly the situation can be changed,” the expert concluded.