According to the latest report from Russia’s statistics service Rosstat, real wages in the country saw a 10.4% increase in April compared to the same period last year. This growth was primarily due to a low base effect recorded in the previous year. However, in April 2022, real wages experienced a decline of 7.2% as a result of a rise in the inflation rate.
Real wages refer to earnings that have been adjusted for inflation, or wages measured in terms of the amount of goods and services they can purchase. Despite the month-on-month decline of 0.9% in April 2023, real wages in Russia have shown a growth of 4.2% from January through April, as per Rosstat’s data.
The average monthly earnings in April amounted to 71,204 rubles ($820), representing a year-on-year increase of 13%, according to the agency. In terms of nominal wages, there was a 0.5% drop in April compared to the previous month. However, nominal wages witnessed an 11.4% increase in January-April compared to the same period last year.
Looking ahead, Russia’s economic ministry predicts a 5.4% growth in real wages for the year 2023. This projection indicates a positive outlook for wage growth in the country.
In addition to the optimistic wage growth, the unemployment rate in Russia has also shown positive signs. According to another report by Rosstat, the unemployment rate dropped to a new all-time low of 3.2% in May. The previous record low was set in April at 3.3%. In March and February, the unemployment rate stood at 3.5%.
In May 2023, around 2.4 million people aged 15 and above were classified as unemployed in Russia, while the occupational level reached 60.6%, as reported by the agency. These figures indicate a relatively stable labor market in the country.
Earlier this month, President Vladimir Putin emphasized the need to boost labor productivity during a plenary session of the St. Petersburg International Economic Forum. He highlighted the declining poverty level in Russia and stressed the importance of maintaining this positive trend.
In conclusion, Russia’s real wages experienced a significant year-on-year growth in April, driven by a low base effect. Despite a slight decline on a monthly basis, wages have shown overall growth from January through April. The country’s economic ministry anticipates further growth in real wages for the rest of 2023. Additionally, Russia’s unemployment rate reached a new all-time low, indicating a stable labor market. President Putin has called for efforts to enhance labor productivity and sustain the declining poverty level in the country.