Unemployment in Russia still at all-time low, labor shortage continues to decrease - CBR

MOSCOW. June 6 (Interfax) - The Russian labor market remains stable as unemployment is sustained at an all-time low, while the labor shortage still tends towards gradual decline, the Central Bank of Russia said.

"The situation in the labor market has not changed considerably since the April meeting. Unemployment is at its record lows. However, according to surveys, the share of enterprises experiencing labor shortages continues to decline. In addition, labor demand in certain industries has been decreasing with a reallocation of employees across industries," the bank said in a press release on the board meeting which lowered the key rate from 21% to 20%.

Wage increases remain high and continue to outpace labor productivity growth, it said. "Nevertheless, according to surveys, companies are still planning more moderate wage indexation in 2025 compared to 2023-2024," the press release reads.

The latest Rosstat data show that unemployment in Russia fell back to 2.3% in March 2025 and remained at this level in April, the lowest since records began in 1991.

Unemployment stood at 2.4% in both January and February 2025, the first time it had risen since December 2023. It was 2.3% in December 2024, as in November and October 2024. It had fallen to its previous low of 2.4% in June 2024 and remained at that level until September inclusive. It was 2.6% in both May and April, 2.7% in March, 2.8% in February, 2.9% in January 2024 and 3% in December 2023.

There were 1.709 million unemployed in Russia in April 2025, 21,000 fewer than in March 2025.