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Workers Mobility in Russia

Labour market in Russia: overview
Main tendencies in the Russian labour market
Labour mobility and internal migration in Russia: reasons and consequences
Necessary measures to improve labour mobility in Russia

The problem of the rational labour force allocation is one of the most important issues for the Russian economy nowadays because it involves the consequent development of the country’s economy and sets the pattern and the limits of this development. In this case the labour mobility plays crucial role as the element of market mechanism, which helps to raise the effectiveness of the workers distribution in different sectors of the economy and different enterprises.

Labour market in Russia: overview
Along with the positive tendencies, such as the general decrease of unemployment rate, the development of efficient labour market in Russia is linked with several complications and problems. The basic problems of functioning of labour market in Russian Federation are concerned with territorial and structural disproportions of demand and supply at the labour market, reduction of the active labour force, the change of structure of work force (the aging of the economically active part) and the lack of professional and territorial mobility of labour force.
The background of disproportional labour force lays in fact that, in spite of considerable unemployment rates, Russian enterprises have shortage of skilled workers at the same time as there are around million job applications in the employment agencies. Therefore, there is a significant disequilibrium of demand and supply of the labour force.

Main tendencies in the Russian labour market
Over the last few years some important tendencies were forming in the Russian labour market, including:
• The transformation of a professional and occupational structure of the workforce and optimization of the quantity of workers in economic industries, which was caused by modernization and restructuring of production.
• There was an expansion of work places and reduction of general unemployment accompanied by the decrease in labour demand among the large and middle enterprises and growth of employment in small business.
• Considerable labour market differentiation of regions and the tense situation it the labour market in a number of subjects of Russian Federation remained.
• There was a decline of the rate of young people reaching working age and demanding work or educational places.
• There was an increase of the number of lagal foreign workers, while the considerable amount of illegal labour migration maintained high levels.

Labour mobility and internal migration in Russia:
causes and consequences
One of the problems is that the labour market is characterized, from the one side, by the low professional and regional mobility of labour force, and from the other by structural and territorial disproportions in the labour market. A period from the beginning of 1990 is characterized by the decline of internal migration, which was stabilized only at the beginning of the 2000. Thus in the early 90s the reaction of the population on social, political and economic reforms was the fall-off of mobility: in this period the number of internal migration rose almost twice . The transformation into the market economy reversed internal labour migration flow towards more developed and western regions of country. The north and the east of the country were loosing their population. An influx of population experienced only Yamalo-neneckiy and Khanty-mansiyskiy autonomous districts in Western Siberia, where the oil and gas industry were developing. As a result of these changes, it is possible to talk about the concentration of demand and supply of labour force in the central districts of the country (Central federal district). At the same time the outflow of the workforce from Siberia and from Far East remains its rates. The excessive supply of labour is observed in the republics of North Caucasus. The growth of unemployment is the consequence of these events.
However, the increase of the difference in the economic development and standard of living of different regions of Russian Federation is becoming the dominant factor of internal labour migration and the mobility of labour force. Such type of territorial mobility cannot be considered as the sign of efficient labour market. As a result of development of the indicated processes, especially in early 1990s, Russian migrants make a considerable segment of the Russian labour market: 15% is occupied in governmental structures, 8% is occupied in an economy in general, more than one third is occupied in the informal sector of the economy .
The task of stimulation of labour mobility in Russian Federation is a consequence of growth of the application of new scientific technologies. Innovative development generates the shortage of skilled workers in different industries and occupations. Partly this situation arises because the structure of trade education is not accorded to the perspective tasks of efficient development of the labour market on a qualifying level and professional structure. However often structural disproportions are the circumstances of the low level of professional and territorial mobility of labour force, the existence of substantial economical restrictions, retentiving the move of labour resources.

Necessary measures to improve labour mobility in Russia
To encourage the regional mobility of labour force it is necessary to develop the programs, facilitating access of workers to the housing market. It is needed, in particular, to wider use the possibilities of the mortgage crediting. It is also necessary to develop the regional housings programs, thus attracting business interested in the labour resources of certain qualification. In the future it is necessary to search more intensively the resolution to such problems as registration of labour force at the place of temporal residence, legalization of labour activity, facilitation of access to social services providing temporal housing. An important issue is the creation of competition and transparent environment in the service sector of assistance in employment agencies in far regions. It is necessary to develop the complex of measures on professional training of young people in professions, which are demanded in regions with lack of labour resources. In the basis of principles of social partnership and corporate social responsibility it is necessary to involve potential of all participants of partnership and assist realization of multilateral interests of employers, workers and their professional associations, and also the government. Employers should have an opportunity to provide the production with necessary qualification workers in a necessary amount. Business should feel the support of social partners on intra-firm education and increase training of human capital.
The government should be able to decline the stagnant unemployment and risks of effluent social tension, promote efficiency and effectiveness of the government spending on training and education and should control the functioning of government services of employment agencies.

The process of labour mobility in the Russian labour market is very intensive. It means that inflows and outflows of workers is the important issue for many domestic enterprises. Taking into account that there is an increasing deficit of labour resources, related to unfavorable demographic situation, this fact represents the necessity of development of the competent systems of motivation, which help to fix necessary workers in the enterprise. Thus the concrete measures of skilled policy should take into account the features of labour conduct of workers, which belong to different social, demographic and professional groups.

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