Russian labor market situation will continue to worsen, no bright spots in sight - CBR

CHELYABINSK. Nov 7 (Interfax) - The situation with respect to the shortage of workers in the Russian labor market has not stabilized and continues to get worse, and there are no bright spots in sight, advisor to the CBR governor Kirill Tremasov said at the Russian Economic Forum in Chelyabinsk.

"We do not see any bright spots in the labor market. The situation continues to worsen rather than stabilize. The rigidity of the labor market's parameters is increasing," he said.

"This situation will lead to continued high wage growth which significantly outpaces productivity growth. When wage growth exceeds productivity growth, there are direct pro-inflationary effects," Tremasov said.

"The labor market remains tight," the Central Bank of Russia said in its latest press release following its board of directors' meeting on the key rate. "Unemployment is still at its record low. The labor shortage is growing in many industries. Rising wages continue to outpace growth in labor productivity," it said.

As reported, unemployment in Russia remained at 2.4% in September 2024, the same level as in June and which held steady in July and August, according to Rosstat data. This is the lowest figure since records began in 1991.

The Economic Development Ministry forecasts an average annual unemployment rate of 2.6% in Russia throughout 2024-2027.