Reported 11 months ago
Russia's labor market is strained with the unemployment rate reaching a record-low of 2.6% in April and real wages spiking in March, driven by the country's heavy spending on defense amid the war in Ukraine. This economic rebound, primarily reliant on state-funded military production, has led to concerns over overheating and capacity constraints. The labor shortage, worsened by recent events and emigration, has resulted in soaring wages particularly in defense industry areas, affecting citizens' purchasing power amidst high inflation. With the Bank of Russia addressing inflation concerns, retail sales growth has slowed, indicating a complex economic situation in Russia.
Source: YAHOO