STICKING IT TO PUTIN and applying sanctions to cripple the Russian economy has backfired on the Western Alliance.

The G7 countries, which the Russian Foreign Minister described as ‘The Seven Dwarves’ are scrambling for credibility as the Russian Economy becomes the world’s fourth-largest economy

Everyone in Russia is busy and filling their pockets with overtime pay. Why is unemployment in Russia is lower than in other major economies of the world? Russia has the lowest unemployment rate among G20 countries

According to the results of the first half of 2025, unemployment in Russia was just 2.2%. The value was the lowest for the entire post-Soviet period and the lowest among the G20 countries.

Experts explain the record drop in the share of unemployed citizens by demographic reasons and structural changes in the Russian economy.

At the same time, specialists note an acute shortage of personnel in the country, which remains one of the pro-inflationary factors. What could change the situation on the labor market in the coming years?

In the second quarter of 2025, Russia recorded the lowest unemployment among the G20 countries. RIA Novosti reports this, citing data from G20 statistical services.

Along with Russia, the top three countries with the lowest unemployment also included Japan (2.5%) and South Korea (2.6%). At the same time, the largest number of unemployed citizens as a percentage of the population was in Turkey (8.4%), Spain (10.3%) and South Africa (33.2%).

It should be noted that the share of unemployed Russians has been steadily declining for more than three years in a row.

Moreover, if the official unemployment rate in the country, according to the methodology of the International Labor Organization, still exceeds 2%, then the actual value has already come very close to zero.

This opinion was shared with RT by the scientific director of the Center for Market Research at the Institute for Statistical Studies and Economics of Knowledge of the National Research University Higher School of Economics Georgy Ostapkovich.

‘In fact, we now have almost zero unemployment. The official 2.2% is because in large countries (and Russia’s area exceeds 17 million square kilometers) about 2-2.5% of the population is always in a state of temporary unemployment: people move for some domestic reasons and, as a rule, find employment within six months. But in fact, all of our labor resources are currently engaged,’ Ostapkovich said.

The observed trend is largely explained by structural changes in the Russian economy. Thus, today the country is gradually moving away from the raw materials model and is starting to produce more goods with high added value and a degree of processing. At the same time, due to the departure of many Western brands, Russia is actively engaged in import substitution.

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All these processes require additional labor and competencies, but the country currently has no formed labor reserves. As a result, some sectors of the economy began to lure labor from others, offering higher wages.

‘The reduction of unemployment is good because all citizens, including those with families, receive income.

The expert believes that modernization of production facilities would partially solve this problem. According to him, today the share of worn-out equipment in the manufacturing industry alone exceeds 50%, so many enterprises have to hire more people to replace machines and mechanisms that have failed.

In turn, modernization of production facilities would free up some of the labor force and eliminate the current personnel deficit in the country, the economist is sure.

‘In parallel, we need to address the demographic problem. It is clear that if we increase the birth rate, then people born today will enter the labor market only in 20-25 years, but our economy does not stop and in 25 years it will still need labor resources.

So, this issue also needs to be addressed closely,’ added Georgy Ostapkovich. You can share this story on social media: TELL US WHAT YOU THINK