Friday, September 30, 2022

Russian Unemployment is at a Record Low

    Russian Unemployment just reached 3.8% in August, making it the lowest in the country since 1992. The mobilization order sent out by Vladimir Putin has created an increase in jobs in the county that hasn't been seen since the Soviet Union days. Many men in the country are being "drafted" to fight for the Russian in Ukraine. Although this order is increasing the number of people employed in the country, it is not effecting any other sectors in the Russian economy. In fact, Russia is seeing decreases in in many of the sectors of their economy.
    Retail Sales, which shows the demand of consumers in Russia, has fell 8.8% just in August. Russia's real wages fell 3.2% in July and Average Nominal Wages fell in June as well. Based off of what we learned in class, this should not make any sense in a normal economy. But Russia's economy depends on what they can export to other countries like manufacturing and natural gases. Since the war in Ukraine has started, many countries have boycotted trade with Russia and it has caused a recession in the economy. 
    I suspect that this trend in the Russian economy will continue until the country backs out of Ukraine. No other country wants to associate with Russia because of what they are choosing to do and it is affecting their economy in a large way. Either Russia will run out of money to supply the war efforts in Ukraine, or they will back out of the war ridden country in order to retain their main source of income.

https://finance.yahoo.com/news/russian-unemployment-rate-hits-record-163259319.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAI8_kSlZQ_yKwQ4y1ZWAF3xwLdOP4dhvKaxc5-Roz6tB729FbtSaUBlMx_rtqlws0ErT_k5talhmeDqZyvaPOIrNNZtaPq_Xos-nXDPdS5w0Inxku8GUiVyylhH4DTwyjW0l6AkTYcF71iNBp9--2TAVxnRgEyvLYzMcy4Ugxacq
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2 comments:

  1. AnonymousSeptember 30, 2022 at 10:58 PM

    My main question is: how is Putin planning on providing economic relief? It is clear that Russia is entering a dangerous economic reality with an increase in unemployment rate and decrease in real wage. It will be interesting to see how Russia's economic state responds to the ongoing reality of war.

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  2. Jacob KenersonSeptember 30, 2022 at 11:52 PM

    It is sad to see how the war has impacted the people of Russia when not everyone agrees with the war, but they are still negatively impacted. I wonder how the war has impacted the economy on Ukraine's side since while they are still in a war, they don't have the countries cutting off trade like in the Russian economy.

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