1. Ministry of Health and Social Development, Russian Federation Labour Market and Employment In The Russian Federation

2. Russia’s National Social and Economic Development: Results and Prospects By 2006 steady upward trends of social and economic development have taken shape: Annual industrial growth rate in 2003-2006 has averaged 6-7%; In 2003-2005 general unemployment has dropped from 8.6% to 7.6% of economically active population; In 2003-2005 the number of people with incomes below the minimum of subsistence has decreased by 8.4% and came to 15.8% in 2005

3. Active Economic Policy The primary goals of Russia’s economic policy are: Implementation of the priority national and state investment projects; Creating special economic zones, facilitating the development of innovative and high-tech industries; Facilitating the development of small business sector. It is necessary to secure both modernized and newly created jobs with needed skilled workforce.

4. Positive Trends of the Labour Market Development Employment growth. Economic restructuring, increasing investments and consumer demand growth have caused the growing demand for labour force: in 2003-2005 the number of those employed has increased from 66.1 to 69.2 mln. people. Decreasing general unemployment. The total number of those unemployed has dropped from 6.2 to 5.4 mln. people.

5. The Labour Market’s Functioning: Major Challenges Geographic mismatch between demand and supply in the labour market. Decrease in population of workable age. Changes in the structure of workable age population: ageing of economically active part of population. Insufficient professional and geographic mobility of the workforce. Structural mismatch between demand and supply in the labour market.

6. Russian Labour Market in 2006.  The number of economically active population has reached 74.6 mln. by August 2006 (according to ROSSTAT, Russian State Statistical Agency).  69.2 mln. people employed in the economy, 5.4 mln. unemployed (7.3% of economically active population).

7. Russian Labour Market in 2006.

8. The Number of Unemployed 2006 was marked by the downward trend in general and registered unemployment. This trend reflects the positive dynamics of the overall economic situation in Russia. According to ROSSTAT 1.7 mln. unemployed have been registered by state employment agencies by July 2006. 5.4 mln. people had no jobs but were actively searching for employment (7.3% of economically active population). According to the ILO approach this category can be classified as unemployed.

9. The Number of Officially Registered Unemployed

10. Officially Registered Unemployment In 2006 the number of unemployed, registered by employment agencies, has stabilized, reaching 1.7 mln. by July 2006. Accordingly, the registered unemployment rate (ratio between registered unemployed and economically active population) was 2.4% by June 2006.

11. The Mismatch Between Professional and Qualification Structure In spite of substantial unemployment, Russian businesses have encountered the problem of skilled workforce shortage: state employment agencies have over 1 mln. vacancies unfilled. Therefore the major current problem of the Russian labour market are the existing disproportions of both professional and qualification structure of demand and supply.

12. Population’s Employment The employment situation, marked by seasonal fluctuations, has slightly improved in 2006. The number of unemployed in the economy, according to ROSSTAT, has reached 69.2 mln. in early August 2006. The largest shares of those employed are registered in processing sector (17.3% of all employed in the economy), wholesale and retail trade (16.7%).

13. Population’s Employment The decrease of both registered and general unemployment rates in 2006 (as compared with the previous year) was caused mainly by overall economic growth, indicated by the GDP growth (6.4%) and industrial growth (4.4%). Accordingly, that allowed to create additional new jobs. One more positive factor that influenced the unemployment reduction, was implementation of the national projects in the areas of healthcare, education, housing construction and agriculture. The implementation of the national projects gave impetus to the creation of new efficient jobs in the above-mentioned sectors, as well as in those connected with them.

14. Employment of Citizens, Searching for Jobs The number of newly employed citizens (who found gainful employment) by the beginning of 2006 was 2 mln. persons. That makes 64.5% of all applicants to the state employment service. As a result of interaction with employers, the national pool of vacancies (vacant jobs and posts) was growing month by month. In January 2005 employers registered 334.000 vacancies, while by the end of the same year – 792.000 vacancies. Qualitative structure of vacancies remains unaltered: among workers occupations professions most demanded by employers are truck and car drivers, metalworkers, engine operators, welding specialists, salespeople, electricians. Among other most demanded professions were physicians, policemen, engineers, accountants, inspectors.

15. Providing Jobs for Those Who Search for Employment

16. The Goals of Public Policy in the Field of Labour Market Regulation Facilitating the realization of citizens’ rights to freely dispose of their labour skills; for decent work in a feely chosen profession. Ensuring the realization of citizens’ right for protection against unemployment. Ensuring the observance of rights in the area of labour protection and compensation, combating working people rights’ violation (including forced labour and discrimination). Facilitating the provision of labour force to employers in numbers required and of skills needed.

17. Main Directions of Public Policy in The Field of Labour Market Regulation Modernizing labour and employment legislation. Organizing the labour market monitoring system. Ensuring the balance between vocational training and demand for workforce. Facilitating the increase of workforce geographic mobility. Optimizing the influx of labour migrants. Stimulating the population’s economic activity. Improving the quality of jobs.