Today, Moscow is objectively one of the most prosperous cities in terms of unemployment.
Photo: Alexey BULATOV
Unemployment statistics in Moscow have changed markedly in the last ten years. This was especially felt during the coronavirus pandemic during 2020. Then the unemployment rate hit a five-year high. The tension continued until 2021. But already in 2022, the situation began to improve, and the number of unemployed decreased significantly.
“Today, Moscow is objectively one of the most prosperous cities in terms of unemployment. As of July 1, 2023, its registered level was 0.34%. The figure is 0.11 percentage points less than a year earlier. Since the beginning of 2023, the number of official unemployed has decreased by 11.7% to 24.8 thousand people,” said Vladimir Yefimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
Experts highlight the very good indicators of entrepreneurial activity and business development inherent in the Moscow economy.
“One of the most important indicators, of course, is the level of employment and the unemployment rate,” says Pavel Samiev, Chairman of the Opora Rossii Financial Markets Committee, CEO of BusinessDrom AC. – The latter is at a really very low level. And if you look at the previous five years and compare them to the largest megacities in the world, then we have one of the best indicators in the world.
This is the result of the expansion of productive capacities, the use of various support programs for SMEs, and an increase in the number of new companies in the capital. The workload and employment are increasing both in large companies and in micro and small companies”.
AHEAD OF THE WORLD’S MEGA CITIES
To compare Moscow with the largest cities in the world, let’s take annual calculations of the unemployment rate according to the International Labor Organization (ILO) methodology. On this basis, the Moscow Analytical Center compiled a rating comparing unemployment rates in various countries and cities around the world. The list includes Moscow and 20 other cities from the G20 countries comparable in terms of population, size and economic structure. “As a result of the study, by the end of 2022, the capital of Russia topped the ranking, leaving behind London, Paris, Berlin, Tokyo, Shanghai and other megacities of the world. Moscow, with 2.2%, is followed by Tokyo, where unemployment was 2.4%, Shanghai – 3.4%, Sydney – 3.6%, New York – 4.0%, Berlin – 4, 7%, Riyadh – 4.8%. The highest unemployment rate among the largest megacities in 2022 was recorded in the cities of Brazil: more than 10%”, said Maria Bagreeva, Minister of the Moscow Government, Head of the Department of Economic Policy and Development of the City of Moscow .
In May 2023, unemployment in Moscow, calculated according to the ILO methodology, amounted to 2.0 percent, 0.2 percentage points less than last year’s value (2.2% in May 2022, 2, 8% in May 2021).
What are the reasons for the positive dynamics? There are several of them: a stable situation on the labor market, an increase in the number of vacancies and a growing demand for qualified specialists. The anti-crisis measures developed by the city authorities also have a positive effect. They are part of the city’s long-term economic development strategy.
Moscow invariably remains the economic leader not only in Russia, but also in the Eurasian space, the center of IT and the financial industry among partner countries.
“Obviously, unemployment in Moscow is now at such a low level that the labor market has become a market for applicants, not for employers,” explained Tatyana Butskaya, First Deputy Chairman of the State Duma Committee on the Family, the Women and Children, Head of the Association of Consumers and Manufacturers of Goods and Services for Children “Parental Choice”, head of the All-Russian movement “Council of Mothers”. – We have many free bets waiting for your specialist, but there are a number of features. For example, we can look at the IT market. In our country there are a large number of highly qualified young IT professionals who have decided to work here”.
The expert believes that they should be especially supported. At the same time, we should also not forget about students – graduates of educational institutions who are ready to apply their knowledge in practice.
“What can be said for sure is that in such an economically developed city like Moscow, you can find work for absolutely everyone,” Butskaya emphasized.
INCREASE IN THE DEMAND FOR WORK PERSONNEL
Experts call Moscow not only the most prosperous region in terms of low unemployment rates, but also one of the largest employers. At the same time, in his opinion, the labor market in the capital is characterized by diversification. The city regularly requires both highly qualified personnel and active professions, and workers without special skills.
“The development of the manufacturing sector has led to an increased demand for workers with professional education and experience in certain areas,” says Elena Limonova, co-founder of the Staff-AP recruitment agency, an expert on labor issues at Opory Rossii MGO. . “This trend also served to reduce the unemployment rate in the capital, since a person with work experience, high qualifications and a worker can apply for vacancies.”
According to her, the capacity of the labor market in the warehouse complexes of the region is maintained.
“This is facilitated, among other things, by the development of the online trading format”, clarifies the expert. – Over the past year, the sale of non-food products in the capital in the online format increased by 52%, food – by 95%. This shifts the focus of the labor market from stores to warehouse complexes. At the same time, the introduction of self-service checkouts at major retail chains eliminates the urgent need for cashiers.”
But there is no rapid increase in salaries that companies offer to candidates in the labor market.
“This is due, among other things, to the low marginality of a series of industries or to the great competition, which does not allow additional costs to be transferred to the final consumer”, says Limonova.
However, as the expert adds, among those who remain in the competitive environment there is another category of candidates who have difficulties finding work.
“These are managers, office workers, people aged 45-50 and over, graduates of higher educational institutions, whom employers are in no hurry to hire,” explains the personnel specialist. “For them, the capital’s employment services offer additional education courses, allowing some unemployed in this category to find a place in related or entirely new areas.”