Analysis of the Russian labor market. Key recruitment trends

The slowdown in economic growth in Russia and the crisis continues to affect the domestic labor market. In 2016, the business nevertheless adapted to economic realities and the companies did not carry out significant staff cuts in the outgoing year. These are the conclusions of Superjob analysts who studied the trends in the labor market this year and the expected trends in 2017.

Only 3% of Russian companies carried out significant staff cuts. At the same time, the annual increase in the number of vacancies this year amounted to 47%.

The recruitment process has completely switched to online services. Thus, employers look for potential employees through various social media and specialized applications.

Moreover, at the end of 2016, the audience of mobile only employers, who use only smartphones and tablets to search for new employees and manage communications with them, has finally taken shape, the report says.

Instead of laying off staff in 2016, employers preferred to save on tuition or travel costs, replacing this with product discounts.

Thus, “compensation packages have become less likely to include the possibility of training at the expense of the company (46% today, 51% in 2014), the provision of company transport (23 and 19%), payment for sports clubs (12 and 5%), travel in public transport ( 12 and 6%)".

The most successful this year were rare and highly qualified specialists. In 2016, salaries for specialists with work experience from 1 to 3 years grew at a faster pace.

“Oracle developer (+21%) — 100-120 thousand rubles, foreign exchange specialists (+20%) — 55-70 thousand rubles, chief designer (+19%) — 100-150 thousand rubles. As well as software testing department heads (+18%), international law lawyers (+18%), Internet project managers (+17%), Java programmers (+14%), tax law lawyers (+13%), PHP programmers (+12%) and systems analysts (+11%),” the study says.

According to Superjob, 2017 will be the last year we can see an overall increase in the number of real jobs. Starting in 2018, offers for low-skilled employees will begin to decrease by 5% each year, while real unemployment will grow at the same pace.

Thus, given the current trends, the overall level of real unemployment in Russia by 2022 may increase several times, up to 20-25%.

At the same time, the demand for highly qualified specialists will only grow.

In the near future, the demand for contact and call center employees will decrease due to the expansion of automation of this type of activity. Employees of accounting departments and banks, who deal exclusively with document management, will also face lack of demand.

knowledge foreign language now it is also difficult to surprise: such a requirement will be relevant only in positions that require the level of a native speaker.

The increase in demand in 2017 will affect IT developers, engineers in various areas, bank managers and international lawyers. The growth in demand for highly qualified employees, coupled with an increase in their wages, is rather a temporary phenomenon, the RANEPA believes.

“These are fluctuations. This means that in the previous stages of the crisis, and we know that this was the case, medium- and high-paid employees suffered more, both in terms of salary and release. Now a gap has formed, employers are trying to fill it, ”explained the director of the Institute social analysis and forecasting RANEPA Tatyana Maleva.

But, according to her, this only partly explains the growth in demand for IT developers and Big Data analysts. “The second reason for the demand for such employees is that the demand for Big Data is growing, this can be seen from different areas activities. But we have very few such developers,” said Maleva.

The changing situation in the economy sets new rules of the game in the labor market. The revival of construction will lead to an increase in the need for specialists in this field. Until 2020, the demand for the builders themselves, specialists in the field of trade, services and real estate transactions will increase. This was reported to Izvestia in the press service of the Ministry of Labor. The number of people employed in manufacturing, on the contrary, will decrease due to automation. As they add in HR companies, a high demand for personnel will also be presented by the real sector, Agriculture, information technology, research and development (R&D). A third of all employees will have to improve their skills, primarily through soft skills (flexible skills), which are especially lacking in technical professions .

Russian market labor in the future 2-3 years will undergo changes. Some of them will reflect global trends, while others will be a response to domestic Russian challenges.

According to the estimates of the Ministry of Labor, which Izvestia got acquainted with, until 2020 the trend towards a decrease in the number of workers in manufacturing industries will continue, which will lead to a decrease in the proportion of people employed in this form economic activity from 14.2% in 2016 to 14% in 2020. At the same time, the share of those employed in operations with real estate, rent and provision of services will increase (from 9.9 to 10.1%). The share of those employed in construction will increase (from 8.6% to 8.8%) and in trade (from 18.9% to 19.2%). According to an Izvestia source familiar with the operational statistics of employment services, the latest data on the labor market already indicate an increase in companies' demand for construction professions. This demand is somewhat ahead of the forecasts of the Ministry of Labor.

According to the Director of the Center market research NRU HSE Georgy Ostapkovich, the decline in the number of people employed in the manufacturing industry is a rather long-term trend. However, the expert urged "not to exaggerate."

Much of this is due to advances in technology. Automation and robotization of production is underway, new machines are replacing old machines, where only one operator is enough. Russia, together with the whole world, is entering the fourth industrial revolution, and this, among other things, affects employment, the expert explained.

RELATED MORE

According to the Gaidar Institute, the shortage of workers in industry to ensure the current output has dropped to its lowest level since 2010. Now only 20% of enterprises are experiencing a shortage of staff. However, skilled workers in Russian industry have been considered the most scarce resource since the end of last year. Even lack working capital is mentioned less frequently by enterprises as a risk factor.

The expected positive dynamics in construction is associated with the recovery of the sector. Since 2015, development has experienced crisis phenomena: the freezing of projects, the reduction of investments and orders. Now the situation is recovering in sync with the recovery of the economy. Housing construction is experiencing a particular rise thanks to a record fall in mortgage rates.

According to the forecast of Tatyana Smirnova, Head of the Kelly Services Recruitment Center, in the coming years, traditionally, the maximum demand will be for specialists-level employees.

Speaking from the point of view of the industry, most likely it will be the real sector, agriculture, information technology, R&D. If we talk about the level - there will be a demand for candidates with skills project management, she noted.

At the same time, the approach to personnel is changing, HR experts point out. If earlier employers showed demand for mono-professions with an appropriate set of parameters - for example, a mathematician "should be able to count", now the labor market is becoming more syncretic. A mathematician should already be able to work in a team and solve problems in a non-standard way. And this is more of a “humanitarian” set of skills. Thus, the boundaries between technical and humanitarian specialties will become more and more blurred.

As stated in the report of the World Economic Forum (WEF), the global labor market in the coming years will demand specialists in business and financial operations, management, and computers. At the same time, more and more office workers, lawyers, specialists in the field of art and design, as well as industry will be released.

In a dynamically changing world economy, states will have to realize that the main asset is not oil or gas, or even corporations like Apple or Google. The person is important as a unit of progress, Georgy Ostapkovich pointed out. Therefore, increasing investment in human capital is vital to the success of the economy. It is individuals and their intellectual product that create the main added value in the economy.

Analysts of large recruiting companies have come to the conclusion that this year will be a turning point for the Russian labor market. In the future, companies will strive to hire only highly qualified employees, and existing ones will be placed in such conditions that they will either have to develop with the company or leave.

Changing jobs is a big risk

An analysis of the labor market showed that almost half of the employees large companies during the last year they themselves changed jobs or experienced a reduction talent pool. The wave of layoffs directly or indirectly affected the majority of the workforce. A quarter of survey participants reported that companies have reduced salaries and bonuses. But even dissatisfied employees are in no hurry to quit and change jobs.

Along with an increase in the number of laid-off employees, an analysis of the situation on the labor market shows an increase in competition. But being a newbie in a foreign company is a big risk of falling under another layoff. The number of resumes on the largest job sites has been declining over the past three years, people rarely quit for own will, and the search for a new place is quite passive.

During 2016, 2% of respondents were demoted, 10% were promoted, and 5% moved to another department or an equivalent position in the same company. More than half of the workers (53%) did not change their place of work or position, and 30% fell under a wave of layoffs and were forced to change companies.

Time to search for a new place has increased

An analysis of the state of the labor market conducted by NN, a Russian Internet recruiting company that, in addition to selling information from a database of resumes and vacancies, also deals with research activities, reports that the period of job search has increased by one and a half times. If back in 2014 a specialist was ready to search for a job within three months, then already in 2016, four to six months were considered normal.

Employers have also extended the closing time for vacancies. The competition among applicants has increased, there are more candidates for the place, so that the management and HR departments firms have become harder to make a choice. The number of selection stages when hiring new employees has also increased.

Employers choose candidates with experience

The demographic hole of the nineties also influenced modern tendencies- this is clearly shown by the analysis of the labor market in Russia in 2017. Today, many companies make the final choice towards more experienced and age applicants. In the future, the situation will change - by 2019-2020, the working-age population of Russia will decrease by more than three and a half million people.

Experience was not required or was not taken into account in 28% of vacancies in 2014, in 2015 only a quarter of employers allowed the possibility of hiring an employee without experience, and in 2016 only 22% remained.

The largest category of vacancies are those that require work experience from one to three years. In 2014-2015 almost half of employers (48%) preferred to hire new people with little experience, the figure remained relatively stable and in 2016 - 47%.

More significant experience (from three to six years) was required in 2014 to be able to apply for a fifth of the vacancies. In 2015, the same indicator increased to 23%, and in 2016 it amounted to 26% of the total number of job offers.

In 2014, only 3.5% of employers gave preference to candidates with more than six years of experience, in 2015 the same figure was 4.4%, and by 2016 it had increased to 4.7%.

This is an analysis of the development of the labor market by share of vacancy by work experience for 2014-2016. The latest data (2016) is shown separately in the chart above.

Analysis of the labor market showed the demand for specialists over 35 years old five to ten years ago, recently employers have begun to pay less attention to the age of the applicant. But still, company executives and personnel officers are more willing to consider candidates for service and administrative positions over 35-40 years old. IN certain areas they even give preference to employees over forty: such applicants change jobs less often and are more loyal to the company. But, of course, candidates are selected from those who are more suitable according to the requirements on a competitive basis.

It's hard to find a specialist

Despite the fact that after the crisis of 2014-2015, competition among job seekers has increased one and a half to two times, it has become more difficult for companies to find a suitable employee. Often, candidates think long before taking the plunge, change jobs less often, and companies no longer lure high salaries.

The following trend has also emerged: employees do not wait for dismissal, but move to a new position themselves, bypassing the stressful phase active search. Thus, the analysis of the labor market showed that the total number of candidates has increased, but the number of those who are suitable for employers has remained at the same level. All this added work to recruiters, managers and company executives.

The average annual HH-index (ratio of resumes to vacancies) in 2016 was 9.6, in 2015 - 10.1 - these are labor market analysis data from the HH agency. Today, competition in Russia (the number of resumes per vacancy) averages six people per job. This is a moderate value that turns the market in favor of the employer. In 2017, the increase in vacancies, compared to the previous one, amounted to 21%, the increase in resumes - 14%.

The diagram below shows the dynamics of the HH index by months in 2016-2017.

As of 2016, the ratio of the number of resumes to vacancies (HH-index) in the regions of the Russian Federation was as follows:

  1. Central Federal District - 7.1.
  2. Northwestern Federal District - 6.8.
  3. Southern Federal District - 6.4.
  4. Volga Federal District - 5.7.
  5. North Caucasian Federal District - 5.3.
  6. Ural Federal District - 5.2.
  7. Siberian Federal District - 5.2.
  8. Far Eastern Federal District - 3.8.

HH-index in professional fields

In some professional fields The index of the ratio of available resumes for the last two months to open vacancies is as follows:

  1. Consulting - 0.9. The least competition, but also an insignificant number of proposals, one applicant hardly applies for one place.
  2. Service - 1.3.
  3. Insurance - 1.4.
  4. Working specialties - 1.5.
  5. Medicine and pharmaceuticals - 2.
  6. Banking, investments - 2.3.
  7. Sales - 2.6.
  8. Automotive business - 2.8.
  9. Programming and information technology - 2.9.
  10. Tourism business - 3.4.
  11. Advertising and marketing specialists - 3.4.
  12. Construction and real estate - 3.7.
  13. Manufacturing sector - 4.
  14. Education and science - 5.2.
  15. Logistics, transportation and procurement - 5.3.
  16. Beauty industry, sports - 5.4.
  17. Security - 5.9.
  18. Administration employees - 6.8.
  19. Extractive industry - 7.
  20. Finance, accounting, accounting - 7.4.
  21. Students and graduates of universities - 8.3.
  22. Jurisprudence - 9.1.
  23. Media, arts and entertainment - 9.3.
  24. public service and non-profit organizations - 11.4.
  25. Top managers - 12.2. The maximum level of competition.

Hope for internal recruitment

Despite the continuing trend of mass layoffs, companies are increasing the value of a single employee. Today, most managers and leaders are ready to train a promising employee, rather than hire someone “from the outside” for higher positions. Back in 2014-2015, only one person from the state applied for open vacancies, but now every fifth offer is closed at the expense of existing employees.

The time for cuts is passing

Despite the fact that quite recently the market was characterized by mass layoffs, today most companies are more optimistic about the future. In 2017, only 12-14% of employers continued to reduce staff. If layoffs continue, then only as part of improving the efficiency of the company: they will part with those who show poor results or do not cope with their duties.

Positive dynamics of vacancies

An analysis of the labor market in Russia shows that the leaders in terms of the number of open vacancies are now the public sector and non-profit organizations (over the current year, the number of offers increased by 118% compared to the previous one). Positive dynamics is also maintained:

  • by working professions (83%);
  • in the extractive industry (68%);
  • production (54%);
  • pharmaceuticals and medicine (51%);
  • automotive sector (49%);
  • service (47%);
  • arts, entertainment and mass media (47%);
  • logistics and procurement (38%);
  • fitness, beauty industry and sports (34%);
  • education and science (34%);
  • tourism business (34%);
  • in jurisprudence (33%);
  • household staff (31%);
  • in construction and real estate (31%).

“In the black” are programmers, HR, marketing and advertising managers, administrative staff, salespeople, accountants, top managers.

Professionals at risk

The number of vacancies in 2017 decreased in consulting and insurance. In connection with the increased inflation, the number of purchases of insurance programs has decreased, therefore, the demand for insurance agents has also fallen. The demand for these specialists has also fallen earlier, by almost 30% in 2016 compared to 2015.

The dynamics of resumes by profession

An analysis of the labor market by profession shows that the number of job seekers has increased (by 60% compared to the previous year). The number of candidates for domestic staff is also growing (39%), public service and non-profit organizations (31%), in the field of medicine and pharmaceuticals (31%), education and science (30%), security (27%), service (26%), consulting (30%). The number of resumes of workers in the extractive industry (22%), in the field of logistics and transport (22%), procurement (22%), in the arts, entertainment, media and mass media (the same 22%), and the tourism sector (20%) has increased.

Fewer applicants became only among insurance agents (-1%), but risks remain in the banking sector (growth was only 2%), information technology and accounting (6%), personnel management (5%).

At the same time, over the past year, most resumes (in numerical terms, not in percentage terms) were posted by students, salespeople and sales managers, administrators, accountants, programmers, logisticians and drivers, marketing and advertising specialists - such data is provided by the analysis labor market in Russia.

Defining year for the market

By all indications, it is the results of 2017 that will become decisive for further analysis and forecasting of the labor market. For 44% of firms, 2015 ended better than the previous year, and in 2016 this figure was already 28%. As well as last year, evaluated the results of 33% of firms in 2015 and 51% in 2016. Worse than the last, graduated 2015 - 20% of companies, 2016 - 19%. Two percent of firms at the end of 2015 were at the stage of liquidation or bankruptcy, in 2016 the figure dropped to one percent.

Key recruitment trends

Among the key trends, the analysis of the Russian labor market reveals a real increase in requirements for the professional level of candidates. It is expected that as early as 2018, the reduction in the number of vacancies for low-skilled employees will begin. If the situation does not change, then by 2022 every fourth or fifth applicant may become unemployed in Russia.

Changing budgets

More and more companies are choosing budget channels for finding new employees. An analysis of the Russian labor market has already recorded an increase in budgets for training existing employees (preparing the ground for advancement within the company), outpacing the increase in salaries for highly qualified or talented specialists.

Average salary in Russia

According to Rosstat, the average salary in 2017 is more than 35,000 rubles, or 30,000 after income tax. At the end of the year, an increase in the income of the population is predicted (largely due to the receipt of the "thirteenth salary" to new year holidays and bonuses) up to 47.5 thousand excluding tax deductions.

Compared to previous years, salaries in Russia in rubles continue to grow (from 27 thousand in 2012 to 32.6 in 2014 and 36.7 in 2016), but in dollar terms, everything is not so rosy. The average monthly salary of an employee in 2012 was $885, in 2013 - $915, in 2014 - $827, in 2015 - $550, in 2016 - $605. passed the thousand dollar mark.

Interestingly, in Russia, almost 70% of employees at the end of the month (before taxes) receive an amount that “does not reach” the average salary in the country. lower salary living wage receive almost 10% of the population. Slightly more than 35% of Russians receive twenty thousand a month or less, half of the citizens are content with a salary of up to 30 thousand.

Unemployment rate

As for the unemployment rate in Russia, the rate dropped below 5% for the first time since 2014. In August 2017, almost four million Russians were considered unemployed, which is 4.9% of the working population. The total number labor resources in Russia, Rosstat estimates almost 77 million people.

Applicant portrait

An analysis of the labor market and resumes of candidates allows us to determine the average portrait of the applicant for 2017. The median is female (51%) or male (49%) between the ages of 26 and 35 with three to six years of work experience. The overwhelming majority of candidates (68%) have higher education.

The chart below shows the full distribution of candidates by gender, age and work experience in all professional fields. So, it is clear that in second place are applicants from 20 to 25 years old with up to three years of work experience, then - 36-45-year-old Russians with experience professional activity over six years.

Sixteen percent of applicants have a secondary specialized education, ten percent have an incomplete higher education (students starting a career fall into this category), only six percent have only a general secondary education. This general information in Russia, while for Moscow or St. Petersburg, completely different indicators are characteristic.

For example, 73% of applicants in the capital have completed higher education, 10% are students, 12% are people who have graduated from specialized secondary educational institutions, 5% of candidates have only general secondary education. The number of open vacancies in Moscow over the past year has increased by 16%, and the number of job seekers - by 7%.

In St. Petersburg, 68% of applicants have higher education, 12% have incomplete higher education, 14% have specialized secondary education, and 6% have only secondary general education. During the year, the number of vacancies in the Northern capital increased by 17%, the number of active resumes - by 13%. The average proposed salary of a candidate is 47.7 thousand rubles, the average expected - 52.3 thousand.

Thus, the analysis of the labor market in 2017 shows that in the future, specialists will need to improve their professional level in order to stay afloat.

Brief review of the report of the Center for Labor Research (CET) and the Labor Market Research Laboratory (LIRT) of the National Research University Higher School of Economics: "The Russian Labor Market: Trends, Institutions, Structural Changes".

  • Low unemployment

Over the past two decades, Russia has developed a labor market model that differs markedly from the model that is typical for most developed countries. Her key feature is that the adaptation of the labor market to fluctuations in the economic situation occurs mainly due to changes in the price of labor, and not due to changes in employment and unemployment (everywhere, as a rule, the opposite is true). This model ensures high and stable employment and low unemployment with significant wage fluctuations.

  • Sharp fluctuations in wages

In Russia, a significant share in the total compensation of workers is the variable part, the value of which is not fixed in advance in employment contracts. It includes bonuses and other incentive payments, which can vary widely depending on the economic situation of enterprises and management attitudes. Tying a significant part of the monetary remuneration of employees to the results of the enterprise's activities means that their total earnings begin to depend on market fluctuations. When worsening economic conditions activities of enterprises there is an almost automatic decrease wages, whereas when they improve, workers almost always begin to receive higher bonuses. The result is a highly procyclical movement in wages.

  • The younger, the higher the income level

In the previous 15 years, Russia has seen an increase in both the employment levels of workers over 25 years of age and the number of employees, especially at the expense of the 26–35 and 51–65 age groups. Thus, demographic trends supported economic growth. However, according to demographic projections, the next 15 years will see a general decline in the number of employees, which will mainly occur at the expense of workers under the age of 35. A significant increase in the level of employment, even with an increase in the retirement age, is hardly possible. The consequence of such trends will be an increase in the earnings of workers at a young age relative to the elderly and, accordingly, an earlier (by age) peak of earnings. In addition, it becomes more actual problem maintaining the level of human capital among workers at older ages: existing levels participation in retraining are not able to maintain labor productivity as they age.

To counteract the trend towards an early decline in labor productivity, investment in dedicated human capital for persons over the age of 45 must be significant and continuous throughout the subsequent working life. If human capital is not renewed during the working life and loses its productive potential, then its productivity will decrease.

  • White collars rule

The share of groups with high professional qualifications (managers, specialists of higher and intermediate levels of qualification) is approaching half, and the share of groups with low professional qualifications (agricultural workers, semi-skilled and unskilled workers) is no more than a quarter of total strength employed. In terms of character labor activity 62% are white-collar and only 38% blue-collar. This shows that non-physical labor has become today the dominant type of economic activity of Russians.

  • The level of human capital is falling

Professional retraining and retraining are important sources of replenishment of human capital. Countries close to the technological frontier spend heavily on this purpose and train up to half of all workers annually. In Russia, the share of employees involved in the process of retraining is about 13%, and in the private sector it is even lower. The expenses of enterprises for these purposes are about 0,3% from total costs for the labor force.

Training is highly selective: it is more focused on skilled workers employed in large enterprises, owners higher education and youth. Those most in need of retraining are out of reach. The low technological level of production, weak competition and high mobility of workers reduce incentives to invest in retraining. As a result, the overall level of human capital is below optimal.

An important source of replenishment and reproduction of human capital is additional vocational training - training and retraining of adults at the workplace, which can take place with or without interruption from work. It provides the supply of the necessary professional skills and is a factor in the growth of labor productivity. Studies in Russia conclude that additional vocational training increases an employee's salary by about 8%. This explains why this problem is the focus of labor market policies in many countries. If in European countries enterprises spend an average of 1.6% of the wage fund, and the leading countries spend more than 2%, then in Russia this indicator 5 times less and is 0.3%.

  • Qualification breeds qualification

The higher the education and qualifications, the stronger the involvement in the processes of training and retraining. Among workers with complete secondary education, every twentieth takes part in additional training, and among workers with higher education - approximately every fifth. If every fourth specialist is retrained annually, then among the workers - only every twentieth. This confirms the well-known regularity that qualification gives rise to qualification.

  • Investing in training the most trained

The maximum coverage is observed in the group of 25-29 years old, it is slightly lower in the thirties and then rapidly decreases. In senior age groups it is minimal. This profile may have several causes. Since the employer's benefit lies in appropriating the difference between the increase in labor productivity and the increase in the employee's wages after training, employers prefer to invest in the training of the most trained. First, employers, by investing in retraining, are counting on a longer period during which they can receive a return. Secondly, young people are more trainable, and besides, young cohorts have a higher level of general education which makes retraining easier.

  • What skills and competencies are employees trained in?

According to the World Bank report, employers note a significant lack of social and behavioral skills among employees (the ability to work with people). In particular, there is an acute shortage of high-order cognitive skills that arise in the course of work. At the same time, the prevailing share of training for all categories of personnel falls precisely on the development of professional skills.

When considered in the context of qualification groups, it can be noted that the training of managers is versatile and is aimed, among other things, at the work of subordinates, as well as at developing the ability to solve emerging problems. Training of specialists is aimed at skill and problem solving.

  • NEET - Not in Employment, Education or Training

Young people aged 15–24 who are not studying, working or participating in vocational training, received a special name in international statistics - NEET - Not in Employment, Education or Training. Representatives of this group are cut off from the sphere of education and the labor market, and the likelihood that they will experience difficulties in further employment and becoming full members of society is very high. In 1995–2015 the share of this group in Russia has decreased significantly, which, first of all, was the result of the active involvement of young people in education, which has been observed over the past twenty years.

The structure of the Russian NEET youth is consistently dominated by those whose connection with the labor market is the weakest - the economically inactive. The most significant factors for falling into this category are the discrepancy between the education received and the requirements of the labor market and its low level, as well as the shortage of jobs in rural areas. If the massization of higher education continues, then graduates of low-quality universities, whose knowledge is not used in the labor market, may become a significant part of the NEET youth. Thus, the measures social policy should be aimed at attracting NEET youth to professional development and retraining as part of active job search programs, and the creation of new jobs.

These features can be explained by the ongoing process of massization of higher education, in which graduates of low-quality universities do not have sufficient competencies and skills to compete for jobs and become unemployed. At the same time, some of these NEET youth (relatively more prosperous) may also be graduates with high salary expectations who cannot quickly find jobs that satisfy their needs.

  • Regional labor markets

The Russian labor market is a system of regional markets, which are rather weakly interconnected and differ greatly in their “success”. Some labor markets are characterized by high employment, high vacancy rates and low unemployment and offer high level wages, while others cannot provide jobs for the majority of the population and do not allow them to have a decent level of wages.

The presence of "strong" and "weak" labor markets must be taken into account in the implementation of any policy pursued at the federal level, since the same measures can be good for some labor markets and be ineffective or even harmful for others. Large differences in employment, unemployment, or wages point to a relatively inefficient distribution of labor resources across a country that could potentially be improved, and as a result, the general level of well-being of the population could increase. The persistence of these differences over time suggests that traditional market smoothing mechanisms (migration, capital flows, trade, technology diffusion) are not working well.

For example, Muscovites who want to find or change jobs are unlikely to search for jobs and be interested in vacancies in the Kirov region, and residents of the Republic of Dagestan will take into account the structure of labor demand in the Murmansk region when looking for work. Similar examples of practically non-overlapping local labor markets in Russian conditions an infinite number can be cited due to the high costs of moving and searching for information.

  • Regions are clustered

It is possible to single out entire groups of regions that are leaders or outsiders simultaneously in many of the indicators under consideration. One group of leading regions where labor markets work relatively well are the conditionally “northern” regions: Chukotka Autonomous Okrug, Magadan Oblast, Yamalo-Nenets Autonomous Okrug, Khanty-Mansi Autonomous Okrug, Murmansk Oblast. Another group of leaders - conditionally central - European regions - includes Moscow and St. Petersburg, as well as the Moscow and Yaroslavl regions. Two groups can also be distinguished among outsider regions. The first is a group of southern republics - Dagestan, Ingushetia, Karachay-Cherkessia and Kabardino-Balkaria. The republics of Kalmykia, North Ossetia and Adygea are also close to this group. Another group of outsiders are the regions of Southern Siberia - the Republics of Tyva, the Trans-Baikal Territory, the Republic of Altai, Altai region, to which the Jewish Autonomous Okrug, the republics of Buryatia and Khakassia, as well as the Irkutsk region are close in a number of indicators.

It is easy to see that these groups form clusters of geographically close and, in many cases, bordering regions. This apparent spatial clustering indicates that the regions within each group have very similar structural and natural geographic characteristics.

Review source: Report of the Center for Labor Research (CET) and the Laboratory for Labor Market Research (LIRT) of the National Research University Higher School of Economics "Russian labor market: trends, institutions, structural changes" "Human Capital", Center for Strategic Research.

The next two tabs change the content below.

Job search and career development coach. The only trainer-interviewer in Russia who prepares for all types of interviews. Resume writing expert. Author of the books: "I'm afraid of interviews!", "To strike on the spot #Resume", "To strike on the spot #Cover letter".