Page 34 - RPTRusFeb17

4.5 Labour and income
Russia saw the fourth consecutive year of population growth in 2016,
said Deputy Prime Minister Olga Golodets, but by only 5,400 people, according to Rosstat. Deputy Prime Minister added that a small increase, and "our position is very difficult." Russia currently enjoys the highest fertility rate in Europe, but the high mortality rates from the 1990s will now kick in and Russia’s population will start to decline again for possibility as long as 5-8 years. The Kremlin is planning to raise retirement ages significantly which will go a long way to plugging the demographic hole and Russia can draw on its neighbours for immigration. But the demographic problems will hold down the country’s growth potential for much of foreseeable future.
Russians still prefer to save over spend and savings levels are at a record high. D espite a marked improvement of the consumer mood in terms of expectations (back to its level in October 2014), Russians still prefer saving to consumption. 21% of respondents to a Public Opinion Fund (FOM) survey conducted for the Bank of Russia reported their view that its a good time for large purchases - a 2% improvement over December. However, 23% responded that the time is right to save - the highest level since FOM began collecting data on the topic.
4.5.1 Labour market, unemployment dynamics
Unemployment remains at record lows and was 5.5% in February, down from 5.6% in January.
34 RUSSIA Country Report February 2017 www.intellinews.com