Vladimir Putin held a videoconference on the situation in Russia’s labor market, presidential web page reports.
As he noted, “The coronavirus epidemic and the ensuing restrictions have had an adverse effect on the economies of every country without exception. Demand has dropped, business activity has declined and many cooperation ties and investment plans have been suspended. Our industries have also been hard hit. The latest data show that the number of registered unemployed in Russia is also on the rise and now stands at about 1.9 mio people.”
According to the President, reducing unemployment is part of the macroeconomic policy and in the given situation, businesses and individuals should get “support from the state such as direct subsidies to pay salaries at small- and medium-sized businesses in the affected industries in an amount equivalent to one minimum wage [RUR 12,130 or $170] per employee in April and May, as well as easy-term loans with a 2% interest rate,” whereas “families with one or both parents temporarily out of work will receive an additional payment of RUR 3K ($42) per month for each minor child.”
“Those who lost their jobs and filed an application with the employment service starting March 1 are eligible for the maximum amount of RUR 12,130,” he said. Generally, unemployed people “are entitled to unemployment benefits for a period of three to 12 months. When this period expires, payments are discontinued even if the person did not find a job. Considering the current difficult situation in the economy and the labor market,” he suggested “to extend unemployment benefits for three months for those who lost their benefits after March 1 because of the expiry of the established term. This measure will be valid until October 1, 2020. These payments will be made for another three months but no later than until October 1.”
“To support individual entrepreneurs that had to close their businesses after March 1 of this year,” the President suggested “establishing unemployment benefits for them at the highest rate, that is, RUR 12,130, and paying them for three months as well.”
It was also decided to “retroactively, starting May 1, increase the minimum unemployment benefit threefold, to RUR 4,500 ($63). This will also be paid over three months, until August 1.”