Page 29 - Russia OUTLOOK 2022

• Unemployment
The pandemic caused unemployment to spike to 6.8% from post-Soviet historical lows in 2019, but thanks to the stronger than expected economic bounce back in 2021 unemployment level fell back to its previous lows as the year came to an end.
But the pandemic has 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, 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
29 RUSSIA Russia OUTLOOK 2022 www.intellinews.com