Overall Score

5.9 in 2015 6.0
0 2.5 5 7.5 10

Key Finding

The narrowing of the high-skill industry wage premium can be traced to strong growth in compensation in the manufacturing of electronic equipment and of wood products. Lower participation rates have partly offset these downward pressures.

BREAKDOWN OF SEVEN INDICATOR SCORES

Scores
0 2.5 5 7.5 10
Education
flexibility
6.9
Labour market
participation
6.0
Labour market
flexibility
7.3
Talent
mismatch
4.4
Overall wage
pressure
5.4
Wage pressure in
high-skill industries
6.7
Wage pressure in
high-skill occupations
4.8

COUNTRY OVERVIEW

View from the ground

Russia has recently experienced turbulence in its economy and particularly its labour market. Many industries have been affected by this, mainly the banking, oil and gas, automotive, and construction and property sectors. Due to a series of mergers, acquisitions, job cuts, and in some cases even businesses leaving the market, vast amounts of workers are now unemployed and ready to join the workforce once again, which is reflected in the labour market participation indicator versus its 2015 figure. Another challenge has been the recent government policies which have resulted in laws restricting foreign-owned companies in Russia. However, despite all the factors mentioned, there is hope the labour market will speed up when economic sanctions are lifted and the economy can begin to recover.

Alexey Shteingardt, Managing Director, Hays Russia

Alexey Shteingardt, Managing Director, Hays Russia

Country Profile

The Russian economy’s contraction is expected to slow in 2016, translating into a shallower recession compared to 2015.

With working-age population declining and the participation rate already fairly high, there is likely to be limited scope for labour force growth.

Real wage growth is stagnant, keeping disposable income growth in negative territory.

Alexey Shteingardt, Managing Director, Hays Russia

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