🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Russian jobless rate hits new record low in strained labour market

Published 08/30/2023, 12:08 PM
Updated 08/30/2023, 12:12 PM
© Reuters. FILE PHOTO: People attend a job fair in the city of Stavropol, Russia October 24, 2019.  REUTERS/Eduard Korniyenko
USD/RUB
-
IRTS
-
MCXRGBI
-

(Reuters) - Russian unemployment hit a new record low in June and real wages rose by 10.5% year on year in further evidence of a tight labour market, data released on Wednesday showed.

The jobless rate fell to 3.0% of the economically active population from 3.1% a month earlier. The growth in real wages was slower than the May figure of 13.3% but still well above analysts' forecast of 8.3%.

Labour shortages have been aggravated by Russia's military mobilisation last year and the fact that hundreds of thousands of people have left the country since the start of the war with Ukraine, particularly affecting areas such as IT.

Defence companies are working around the clock and experts say the military sector has drawn workers away from other parts of the economy, with staff shortages being felt in light industry, chemicals, food and other areas.

In better news for the central bank, inflation slowed to 0.03% from 0.09% in the week to Aug. 28.

Inflation in Russia began to pick up in June as last year's high base effect wore off, when prices rose by double digits after Moscow launched what it calls its "special military operation" in Ukraine. Rouble weakness has also pushed up the price of imported goods.

President Vladimir Putin has addressed the topic of growing inflationary risks twice in the last month, telling the government and central bank to keep the situation under control.

© Reuters. FILE PHOTO: People attend a job fair in the city of Stavropol, Russia October 24, 2019.  REUTERS/Eduard Korniyenko

The bank has raised its key rate twice since the end of July, by a total of 450 basis points, in an attempt to stabilise the rouble and curb inflation, promising to continue the cycle of tightening monetary policy if necessary.

In its latest forecast, it estimated inflation in 2023 in the range of 5.0-6.5% compared with 11.9% last year, and said it was expected to return to its 4% target in 2024.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.