Social Impact of the Economic Crisis in Russia

According to the World Bank, GDP growth in Russia in 2010 will not reduce unemployment rate lower than the level of 2009. In 2009, the unemployment rate is to hit 12% by the method of the International Labour Organization (ILO). In 2010, in spite of resumed GDP growth, unemployment will reach 10%.

The forecast for unemployment rate in 2009 by Russian experts differ from each other. According to the labour force forecasting laboratory of the Institute of Economic Forecasting of the Russian Academy of Sciences, unemployment rate will hit 8% by the ILO method, while the Labour and Social Insurance Scientific and Research Institute of the Ministry of Healthcare expects 10%. The Ministry of Economy has published an official outlook for 10.4-10.7% unemployment.  

Among the long-term implications of the rising unemployment rate in 2008-2009 are said to be reduced expenses for children's education by the unemployed, which fact will affect the Russian labour market within 10-15 years.

Russian experts note a decreasing birth rate and falling spending on children's medical provision.

Source: http://worldbank.org