Christopher Granville

Director of Russia Research
+44 (0)20 3008 5762

Jan Cleave

Analyst, Russia Research
+44 (0)20 3008 6093

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The benefits of rising unemployment

Overview

The wage flexibility seen during the Russian economic crises of the 1990s is evident once again during the present downturn. But this time round, there is greater overall flexibility. Taking advantage of an employer-friendly provision of the new Labour Code, companies are much more actively downsizing. Our trusted source (a leading labour market specialist) highlights the main reason: the need to retain scarce skilled labour. Striking anecdotal evidence is provided by Novolipetsk...

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