The One Shock Russia Dodged Is Set to Catch Up With Putin
- Minister sees unemployment rising to highest since 2013
- Cheaper oil extending Russian recession, hurting budget, ruble
Russia's President Vladimir Putin.
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Russia’s longest recession in two decades is proving a test too far for the labor market.
After deflecting pressure in 2015 with salary reductions, part-time work and unpaid vacations, companies are increasingly opting to cut jobs as the economy enters its second year of contraction. As Russia’s biggest companies from carmaker AvtoVAZ to nuclear plant operator Rosenergoatom plan job cuts, Labor Minister Maxim Topilin predicts unemployment reaching the highest since 2013 by mid-year.