Page 52 - RusRPTJan23

4.5 Labour and income
4.5.1 Labour market, unemployment dynamics
Unemployment remained at an all time low of 3.9% in December.
The authorities came up with a new way to keep valuable specialists in Russia and return to the country in December: representatives of some professions can simply be banned from working remotely from abroad. The corresponding bill has already been prepared by United Russia, but there is no certainty that it will be adopted yet. One of its co-authors, Senator Andrei Klishas, said that the document would soon be submitted to the State Duma. According to Andrey Isaev, deputy head of the United Russia faction, the draft law provides for amendments to the Labour Code, according to which “persons who are not residents of the Russian Federation in accordance with tax legislation, that is, who are abroad, will not be allowed to conclude an agreement on remote work or an additional agreement to an employment contract.” Non-residents are considered, among other things, citizens of Russia who spent less than 183 days in the country (in total, not in a row) within 12 months. The list of specialties that will be affected by the new law will be determined by the government, Isaev said.
The CBR is worried about the changes in the labour market from recent events, the central bank said in its October monthly update.
“The pandemic and its aftermath have significantly altered the structure of the demand for labour. These shifts, coupled with the slow adjustment of supply in the labour market, have increased the natural rate of unemployment.
This is evidenced by, among other things, the surge in the demand for labour and intensified inflationary pressure, even though unemployment has not fully returned to the pre-pandemic rate.
One of the most important indicators of the labour market is the dynamics of wages. By the end of the first half of the year in 2022, the growth of nominal wages reached double digits.
The highest rates were demonstrated by the industries facing a considerable rise in the demand for labour and higher competition for workers among employers.
If the labour market maintains this trend in the next few quarters, the structural changes in the demand for labour may well support the generally faster growth of wages in the economy. Higher employment rates and wages in the leading industries will boost competition in the labour market and the growth of wages
52 RUSSIA Country Report January 2023 www.intellinews.com