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Russians had no money even before the crisis

Most Russians, over 60%, do not have any savings at all, and even those who have them don’t have enough to last more than six months, according to a study by the Perspektiva research center commissioned by Rosgosstrakh Life insurance company and Otkritiye bank, RBC reports.

The findings also suggest most Russian citizens do not have enough money for daily spending even despite having a job. More than one-third of respondents reported a significant shortage.

In the current situation when employers don’t know when they will be able to resume operation and lift the quarantine, some of them may be tempted to lay off unofficial employees. These people will join the unemployed and seek help from employment centers, said Artyom Deyev, head of analytics at AMarkets.

Many professionals will have to change careers and be trained in a different field because tourism, entertainment, HoReCa and air transport are under tremendous pressure now with no customers or sources of income.

Some Russians who have lost their jobs will not apply for state support (those who do not have a safety net and are forced to urgently look for something new), but will transition to remote work.

Initially, they are probably going to be employed through “gray” arrangements – that is, without official employment. With the sagging ruble, household incomes will be shrinking, while prices will rise, the expert warns.

“The retail sector is growing fast, and always requires more workers. Some large companies have already offered jobs to specialists laid off from other industries,” Artyom Deyev added.

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