The press service of the Ministry of Labor has refuted media reports on mass dismissals allegedly expected in 2019, saying Russia’s labor market remains stable.
Previously, Izvestiya daily newspaper reported that over 230,000 people may lose their jobs in 2019, citing the information from the ministry. The newspaper said the move would mostly affect banking and transport sector employees, as well as residents of Russian major cities. Officials, however, were displeased with these disturbing reports.
“We are not expecting a sharp rise in unemployment. The Ministry of Labor conducts weekly monitoring of the labor market as part of its current activities. The overall dynamics of employment turnover has remained stable in the past few years”, the ministry’s press statement said.
According to the ministry, the unemployment level in Russia will remain unchanged within the next three years and will stand at no more than 3.6 million people (less than 5%). However, many experts and even officials claim the actual situation is much worse. In particular, presidential adviser and prominent economist Sergei Glazyev believes that the disguised unemployment rate amounts to 20%. The ministry noted that its forecast was based on the information from employers, who are obliged to notify employment agencies of dismissals two months prior to the planned move.
“But this does not mean all workers will be given the sack”, the press statement emphasized. Also, some may hold their positions in case there is a sudden change in the company.