Sergey Zhavoronkov: Two Issues Are Urgent for Russia: Shadow Market and Hidden Unemployment

Sergey Zhavoronkov, senior researcher of the Gaidar Institute commented on the situation on the labor market for  
Social surveys findings constantly demonstrate a significant share of persons who are afraid of losing a job. checked with experts how to behave correctly in case of a redundancy and is it worth going to a job center.
“The situation when a person is registered on the labor market for years and gets unemployment benefit is also incorrect. If there is no vacancy according to specialty, then one should accept any other job,”- said Sergey Zhavoronkov.
Unemployment statistics does not reflect the real state of affairs agrees Sergey Zhavoronkov. However, at the same time he indicates that for Russia the unemployment issue is not urgent if we mention official unemployment – speaking about those who left the service or were laid off and got to the labor market. Precisely these people are taken into consideration according to WLO classification. Russia is facing two other urgent issues: shadow labor market and hidden unemployment. 
“There are 20 mn persons in Russia who do not work officially while being in the active working age. And this figure is much more impressive than those 4% of official unemployment mentioned by Rosstat. Mainly they are people who work in the informal economy and earn little,-comments Zhavoronkov. - The second issue - hidden unemployment in the form of half or quarter of a wage rate, holidays without pay, etc.”