New Trends in Russian Wages and Employment
A recent analysis indicates that there are now about 2 million Russians earning 100 thousand rubles or more per month. This finding comes from a FinExpertiza study that relies on Rosstat data and has been cited by several mainstream outlets as a notable development in the Russian labor market.
The study shows that in large and medium sized enterprises the share of employees earning at least 100 thousand rubles monthly rose by 72 percent over a two year period, reaching 4.88 million as of April 2023. This group constitutes roughly 17.4 percent of the total workforce in those sectors, or about one in six workers. By April 2021 the same income level applied to about 2.84 million employees in large and medium enterprises, highlighting a strong upward trajectory in earnings within these corporate structures.
A respected academic from the Russian University of Economics commented on the wage dynamics observed in the data. Yulia Finogenova, a professor from the Department of State and Municipal Finance at GV Plekhanov University, notes that wage growth has become more evident in sectors currently facing personnel shortages. These sectors include construction, real estate, heavy industry, information technology and retail trade. The professor suggests that employers are responding to the challenge of filling vacancies swiftly, with higher pay serving as a key incentive to attract and retain workers.
The expert highlighted that the rise in salaries in industries connected to defense orders, along with related sectors, has been a driving force behind the wage growth. This trend underscores momentous shifts in the wage structure as firms seek to secure skilled labor in a tightening labor market.
Earlier forecasts from Rosstat anticipated a real rise in wages for Russia in the first half of 2023. Data showed that the average salary in June reached about 76.5 thousand rubles, representing a year over year increase of around 14 percent. These figures reflect a period of adjustment in earnings that aligns with broader economic signals seen across the country.
During remarks that discussed economic planning, President Vladimir Putin indicated an intended policy move for the near future. He stated that beginning January 1, 2024, the government aims to implement a rapid increase in the minimum wage, with a projected elevation of 18.5 percent. This step, combined with the ongoing wage growth in various sectors, points to a broader effort to bolster household income and consumer demand in the Russian economy.
At the same time, the public discourse around real wages emphasized expectations for continued gains. The government has signaled that real wages should rise by approximately 3 to 5 percent within the year, indicating a commitment to sustaining purchasing power even as other macroeconomic factors evolve. The intersection of these projections with observed wage dynamics suggests a period of ongoing real income growth for many workers across the country, particularly in sectors tied to government contracts and strategic industries.
In summary, the latest data reveal a notable expansion in the number of higher wage earners among large and medium enterprises, alongside broader expectations for real wage growth and wage policy adjustments. Analysts point to shortages in skilled labor and targeted pay increases as central forces shaping wage trajectories, while policy signals indicate a continued focus on improving living standards through wage policy and labor market reforms.
[Source attribution: FinExpertiza based on Rosstat data]