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As famous writer Fedor Tutchev said, we couldn’t understand Russia by mind and common yardstick to measure not.
These lines very clearly reflect the specifics of many processes in Russia. The process of labor market formation isn’t an exception. A unique “Russian” way of labor restructuring emerged, as soon as market reforms started in Russia. To a large extent this was due to the fact that labor relationships were most tightly regulated segment of the planned economy.
For reduction of tension on labor market regional programs were implemented. These programs mainly included four kinds of measures: public and temporary work, trainings, relocation and self-employment support. Public and temporary works for the vast majority of regions were the priority. In Penza, Irkutsk, a Leningrad region, Saint-Petersburg and Komi Republic the accent was made on trainings. Self-employment was mainly spread over the Republic of Dagestan, the republic of Tuva, Tyumen, and Rostov region. Significant costs of financing the move are planned in many regions of the Far East, the republic of Ingushetia, Lipetsk and Tomsk regions. Government of the Russian Federation of 31 December 2008. № 1089 "On granting of subsidies from the federal budget of the Russian Federation on the implementation of additional measures aimed at reducing tensions on the labor market of the Russian Federation”, provided directly in 2009, 43.7 billion rubles in subsidies to the budgets of the Russian Federation on the implementation of additional measures aimed at reducing tensions on the labor market of the Russian Federation. Such additional measures included: the advanced training of workers in the event of mass layoffs, public works, temporary employment and training graduates, the provision of targeted support to citizens, including their transfer to another locality to replace jobs, promoting small businesses and self-employment of the unemployed.[7]
Additionaly,
according to the Russia’s Labor and Employment Agency (Rostrud) report,
primary attention in 2009 was paid by Rostrud and state labor inspection
to ensuring the timely payment of wages. The number of detected violations
in 2009 on the wage was about 132 thousand for the admitted violations
of the law by employers on wages fined more than 36.2 thousand officers
(2008 - 28,8 thousand) and more than 8,4 thousand legal persons (2008
- 6,9 thousand).[10]
2.3 Current situation on the Russia’s labor market
Experts “RIA-Analysis” conducted an analysis of unemployment situation in Russian regions, based on official statistics of Federal State Statistics Service (Rosstat). As noted in the study, in most regions of Russia - at 43 - the unemployment rate in the first quarter of 2011 decreased compared to 2010. Leaders to reduce unemployment have become the Chechen Republic, the Republic of Tuva, the Republic of Ingushetia Republic of Khakassia, and the Oryol region. However, in 39 regions, the unemployment rate increased. The greatest increase in unemployment was observed in the Altai Republic, Tomsk Region and Nenets Autonomous District. In 46 regions the unemployment rate for the first quarter of 2011 was higher than the Russian average, and was lower – only in 36. Of the 14 regions with the highest unemployment, 13 are republics. In general, the RF level of unemployment in the first quarter of 2011 compared to the average value in 2010 remained unchanged at 7.5%. In this case, compared to European countries, unemployment in Russia is rather low, especially compared to countries such as Spain (20.7%), Slovakia (13.9%), Hungary (11.9%), France (9.5%).[5]
Despite the overall acceptable rate, unemployment is strongly differentiated by regions of Russia. As can be seen from a prepared based on the data Rosstat experts RIA-Analysis “rating on the level of unemployment in the region for the I quarter of 2011” the most advantaged in terms of jobs are metropolitan regions - Moscow (unemployment rate - 1.8%), St. Petersburg (2.4%), Moscow Region (3.4%). Against this background, stand out sharply, unemployment rates of the Republic of Ingushetia (48.8%), Chechnya (38.9%), the Altai Republic (18.3%). Worse situation is in the North Caucasus Federal District, where every sixth person (among the economically active population) is unemployed. Therefore, solving the problems of the North Caucasus is inseparable from the problems of employment of the population, which will improve both social and economic situation in the regions. The causes of high unemployment are different, but low level of economic development can be considered as the main one. Studies have shown that, in most cases there is a clear relationship between performance indicators of the regional economy and unemployment. However, in some regions with relatively low economic indicators there are low levels of unemployment. [5]
A
curious fact, which can be attributed to the formation of the national
peculiarities of the labor market, is that in regions of Russia there
is practically no close relationship between the demand for workers,
and stated levels of unemployment. In other words, job availability
is not sufficient condition for low unemployment and vice versa. Analysis
has shown that the matter is not only in quality of vacancies and working
conditions. At present, Russia offers a palette of vacancies, but a
substantial portion of unemployed Russians are not willing to actively
seek work, and even more not ready to change their place of residence
for employment. [8]
2.4 The main directions in the Governmental employment policy.
President of the Russian Federation, Dmitry Medvedev approved the list of instructions from the meeting on public policies on employment, which was held on the first of March, 2011. The government charged, inter alia, to prepare proposals for the development of measures to ensure employment and mechanisms for their implementation since 2012. In particular, it is necessary to organize vocational training of workers in the modernization of production and implementation of investment projects, provide support for unemployed people starting their own business. The President also instructed to coordinate the implementation of programs aimed at supporting small and medium businesses. Also was also mentioned that there was a necessity to increase employment opportunities for parents who are raising children with disabilities, and parents of many children. In addition, the President instructed to give women who are on leave for child care, opportunities retrain. In accordance with the request of Medvedev, a program of preferential loans to small and medium-sized enterprises, carried out by Vneshekonombank, should receive additional funding from extra budgetary sources. It was mandated to provide subsidies to the budgets of Russian regions in amounts not less than provided in 2011 to finance a system of measures aimed at supporting small and medium-sized businesses. The government also instructed to develop a set of measures for the vocational orientation of students of educational institutions of general education. And as, Prime-minister Vladimir Putin claimed, in 2011, 105 billion rubles in social support for the jobless and for employment programmes will be allocated, which will not focus on providing jobs but on upgrading worker skills and creating conditions in which people will be able to receive new, higher paid jobs that are in demand. The priority right to participation in these programmes is given to the people who objectively have problems with finding jobs.[8, 11]
CONCLUSION
Crises occurred and all components of the economic system of the country should respond to it. Actually, the features of Russia’s labor market during the crisis period were rather atypical. In the transition period such mechanisms as involuntary part-time employment, involuntary administrative leaves, “shadow” wages and wage arrears were widely used. In addition to that, employment and unemployment were relatively stable and there were not any big jumps in indicators. During a recovery period, the situation improved. But the world financial crisis occurred and the reaction of Russia’s labor market was slightly different. In 2009 unemployment was rather high and a lot of layoffs were indicated. Such mechanisms as involuntary part-time employment, involuntary administrative leaves were observed in few cases. But the indicators of unemployment (especially registered) were high and not stable, comparing to 90s.
Regional markets differ greatly in degree of response to the crisis. Therefore, government of the Russian Federation implemented regional programs in order to reduce a tension on the labor market.
At present these programs act and essentionally help to reduce a tension on the labor market. As Head of Labor Agency, Yuri Gertsy said: “We can say that the crisis on the labor market has passed, the situation is clear and it is not crisis anymore”. [6]
As
for the model of Russia’s labor market, it is necessary to outline
that it has rather nonstandard way of formation but we can see some
characteristics that are similar in response to crises, or may be its
just consequences of 90’s and in time Russia’s model will find new
specific features.
Bibliography
1. V.S Bulanov,
N. Volgin, "Labor Market", a textbook,M: Examination,2000,
448 p.
2. Rostislav Kapelyushnikov, "The Russian labor market model: we
do not like all" Demoscope Weekly, № 107-108 on March 31 - April
13, 2003
3. Tikhonov V. M. Filippov, "The labor market and market
of educational services in the Russian Federation," Tutorial "Technosphere",
Moscow 2007
4. Vladimir Gimpelson, Rostislav Kapelushnikov «Labor market Adjustment:
Is Russia Different? », Discussion Paper No. 5588 March 2011 IZA P.O.
ox 7240 53072 Bonn, Germany
5. RIA-Analysis: Rate of unemployment regions
Retrivered 30 April, 2011 from
http://www.rian.ru/research_
6. The crisis in the labor market is over - Rostrud
Retrivered 03 May, 2011 from
http://www.rian.ru/society/
7. Activities aimed to reduce tensions on the labor market of the Russian
Federation under the influence of the global crisis on the labor market
in Russia in 2009
Retrivered 28, April 2011 http://www.labourmarket.ru/
8. The labor market situation in Russia in 2011
Retrivered
02 May, 2011 http://www.rian.ru/society/
9. http://www.gks.ru/ - The Official federal Statistical Office
10. Report of the Head of the Federal Service for Labour and Employment Yu. Gertsy at the enlarged meeting of the Board of the Federal Service for Labour and Employment
Retrivered
01 May, 2011 http://www.rostrud.ru/press-
11.http://premier.gov.ru - Official website of Prime Minister
12. The Russian
labor market: an overview of current trends, the monitoring of the labor
market in May 2009, Moscow in June 2009
Retrivered 27, April 2011 http://www.rostrud.ru
http://www.labourmarket.ru/
http://www.rian.ru/society/
http://www.rostrud.ru
ANNEX
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Source: Rosstat