Measured in dollars, Russia’s average wage declined over 30 % last year

BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/05

Preliminary data show the average monthly wage in Russia in 2015 was 34,000 rubles ($560, €500). Nominal wages increased 4.5 % on average, while high inflation and ruble depreciation eroded the purchasing power of wage earners. Real wages contracted over 10 %, and measured in dollar terms, the average monthly wage was down more than 30 % from 2014.

Average monthly wage in Russia (12-month moving average)
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Sources: Macrobond, BOFIT.

Wages remained highest in the oil & gas and fishing industries, but average nominal wages range widely across industries. The average monthly wage in the oil refining industry was nearly 2.5 times higher than the average wage nationally, and about half the average in the textile industry.

Based on ILO methodology, Russian December unemployment was 5.8 %. Although the total unemployment has increased only slightly, the regional variations are large. The unemployment rate in the Central Federal District has remained below 4 %, while unemployment has risen to 12 % in the North Caucasus region. In the Republic of Ingushetia, the unemployment rate exceeds 30 %. Unemployment is especially a problem for the young. About 20 % of Russian 20—24-year-olds were unemployed in December 2015.

While wage arrears rose significantly in the past year, the level is still low.

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