Page 35 - RusRPTDec18

4.5 Labour and income
4.5.1 Labour market, unemployment dynamics
Unemployment remains at historical lows of under 5%.
Russia’s unemployment benefits will almost double in Russia in 2019.
The maximum amount of unemployment benefits will amount to RUB8,000 ($121.3.
More than one-fifth (22%) of the Russian population now lives in “the poverty zone”, according to a report by the Russian Presidential Academy of the National Economy and Public Administration release on November 21. The "poverty zone" is defined as a consumer that can buy no more than “basic staples needed for subsistence.” It is not clear if this definition is wider than that used by Rosstat to calculate the official poverty line which currently stands at 13.2% of the population based on international norms for the definition of poverty. Clearly the Kremlin is focused on the issues of poverty and working poor. President Vladimir Putin specifically tasked the government with halving poverty levels as part of his May Decrees plan of action to “transform” the Russian economy. A big part of the slated RUB17 trillion of spending is targeting the social sphere to improve Russians quality of life. The study placed nearly 36% of Russians in the "consumer risk zone," with incomes that allow them to buy decent food and clothes but little or no disposable income. Another 14% are into a "zone of possible changes" and may see their wealth increase. The remaining 28% of the population are in what the research defines as the "comfort zone" and can provide themselves with decent food, clothes, and consumer durables. Rosstat reports a smaller number for Russia’s poverty with 19.3mn residents of Russia and the Russian-controlled Crimea region living below the average subsistence level of RUB9,786 ($148).
4.5.2 Income dynamics
The average nominal monthly wage in September was up by 11% y/y to RUB42,200 (€530). The decline in unemployment and emergence of labour
35 RUSSIA Country Report December 2018 www.intellinews.com