Russian Unemployment is Soaring, Retail Sales are Plummeting

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The Kremlin has admitted Russia will have at least an 8% economic contraction this year, four times worse than it predicted at the beginning of the year. The rising ruble, tied to the price of oil threatens to wreck Russia’s domestic industry. The results are disastrous. The Wall Street Journal reports:

Russian unemployment has reached its highest level this decade as thrift replaces a culture of consumer spending, official data released Friday showed. The number of unemployed in Russia rose to 7.7 million in April, or 10.2% of the total labor force of 75.2 million, data from the Federal Statistics Service, or Rosstat, showed. Around 3 million workers have lost their jobs since late summer. Russia’s economy has been dragged down by lower oil prices and decreased access to short-term capital.

{Click the link to read the details, showing that the Russian economy is on the cusp of another major downturn}

5 responses to “Russian Unemployment is Soaring, Retail Sales are Plummeting

  1. Exuberant spending? I have no idea what this means for a regular Russian person when you consider measly wages. Oligarchs of course were famous to spend to the left and right easy money. Russia economically is just European part and you can actually further extract main places even from that territory. Failure of economy is not a surprise either- Russia had economy of raw material export and construction boom. When raw material price went down and constructions stopped economy disappeared.

  2. simtech, during the oil and gas boom years Russians that could bought lots of stuff. That was across all incomes. It’s relative.

    The oligarchs are the least of Russia’s problems. Some of them have more brains and better capitalist instincts than the bozo siloviki that are managing the economy. Russia would be a better economic place with Khodorkovsky and Yukos intact. It was a transparent shareholder oriented company compared to the cash trough that Putin and his fellow gangsters feed off of now.

  3. penny, you might be right about Yukos, because nationalization of any kind business has very negative impact on foreign investment. In general however I am against all ‘”quicksilver” guys who take advantage of Russian corrupt system. When there is no law base it is very easy to get a hold of a whole country. Look what happened in Lithuania- 5 companies rule entire country. Jobs dried out and there is a massive emigration. Government’s official stance about family values- WE DON’T CARE about you or your family.

  4. The Wall Street Journal reports too many irrelevant things on other countries. I believe it would be better to give us numbers on the US growing unemployment rates state by state.

    There’s some visible mental abnormality about The Wall Street Journal’s interest in roosha in these hard times in the US itself. Or maybe retail sales in Detroit City are rocketing?

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