Labor Market Analysis of Russia: Unemployment and Participation

This report provides a comprehensive analysis of the Russian labor market, focusing on the unemployment rate and labor force participation rate. The analysis includes trend analysis of both indicators over a ten-year period, utilizing data from Tradingeconomics.com. The report examines the factors influencing unemployment, such as cyclical unemployment, and the fluctuations in labor force participation. Furthermore, the report offers a comparative analysis of labor force participation rates between Russia and Canada, highlighting the similarities and differences in governmental policies aimed at maximizing labor force participation. The report concludes with a summary of the key findings and includes references to supporting articles and data sources.

Running head: LABOR MARKET ANALYSIS OF RUSSIA
Labor Market Analysis of Russia
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Table of Contents
Introduction......................................................................................................................................2
Unemployment rate.........................................................................................................................2
Labor force participation rate..........................................................................................................3
Comparison of Labor force participation between the Russia and Canada.....................................4
Conclusion.......................................................................................................................................4
Reference.........................................................................................................................................6
Article Reference.............................................................................................................................7

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Introduction
The report studies the labor market of Russia with special focus on unemployment rate
and labor force participation rate. The trend analysis of the above mentioned indicators are being
done in the report. The report further compares the difference between labor force participation
rate between Russia and Canada.
Unemployment rate
Figure 1: Unemployment rate in Russia
Source: (Tradingeconomics.com, 2020)
The unemployment rate in the Russia ten years earlier was disturbingly high. In 2010, the
unemployment rate in the in Russia was over 8%. After 2010, unemployment rate of the country
never touched that high (Marelli & Vakulenko, 2016). High unemployment rate in 2010 was due
to the cyclical unemployment that occurred due to the consequence of financial crisis. With
easing of poor economic condition, the unemployment condition in the country improved. There
has been fluctuation in the unemployment rate in Russia but the rate has consistently fallen over

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the years (Danilenko, Demidova & Signorelli, 2018). From mid of 2012, the unemployment rate
remained below 6% and after 2018, the unemployment rate fell below 5%. The unemployment
rate in 2019 fell to 4.3% which is lowest in the last ten years. Currently, the unemployment rate
remained low because they cut pay instead of job cut during times of crisis and there is low
benefits to unemployment encouraging falling unemployment trend.
Labor force participation rate
Figure 2: Labor force participation in Russia
Source: (Tradingeconomics.com, 2020)
The labor force participation increased in Russia after the recovery from financial crisis
of 2008 and 2009. It is evident from the figure 2 that there has been fluctuating but gradual
increase in the labor force participation. In 2010, the rate was around 67% and by the end of
2016, the rate touched the 70% rate (Bakhtin & Aleksandrova, 2018). However, in the 2017 the
labor participation rate suddenly fell drastically and touched 62%. The main cause of this is the
increased age of working population. With rise in age, the amount of labor in the work force

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declined due to retirement. Low number of youth is another reason because there is no sufficient
amount of youths to fulfill the space created due to retirement.
Comparison of Labor force participation between the Russia and Canada
Figure 3: Labor force participation in Canada and Russia
Source: (Tradingeconomics.com, 2020)
The trend of labor force participation in Canada and Russia has been falling but in case of
Russia, the trend started in 2017 and for Canada, it started in 2010. The reason of falling
unemployment in both the countries is due to rise in average age of work force. There is low
youth in work force than old ones. Both the government implements policy to boost their
population such that in future labor participation increases. On the other hand, Canada gives long
maternity paid leaves to women in order to stay in the labor force and Russia encourages more
youth participation in the labor force.

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Conclusion
Labor market in Russia is in good condition from the perspective of unemployment rate
and but the labor participation rate is not in well. After comparing the labor force participation
between Russia and Canada, it has been observed that both the countries has implemented
policies to improve the labor force participation.

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Reference
Bakhtin, M., & Aleksandrova, E. (2018). Health and labor force participation of elderly
Russians. Applied Econometrics, 49, 5-29.
Danilenko, T., Demidova, O., & Signorelli, M. (2018). Unemployment Clubs in Russian
Regions. Emerging Markets Finance and Trade, 54(6), 1337-1357.
Marelli, E., & Vakulenko, E. (2016). Youth unemployment in Italy and Russia: Aggregate trends
and individual determinants. The Economic and Labour Relations Review, 27(3), 387-
405.
Tradingeconomics.com. (2020). TRADING ECONOMICS | 20 million INDICATORS FROM
196 COUNTRIES. (2020). . Retrieved 8 March 2020, from
https://tradingeconomics.com/

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Article Reference
https://www.rbth.com/business/330166-russia-low-unemployment
https://www.bofit.fi/en/monitoring/weekly/2018/vw201812_3/
https://www.ilo.org/wcmsp5/groups/public/---ed_emp/documents/publication/wcms_393861.pdf
http://www.oecd.org/social/labour/31743892.pdf