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“Unemployment the biggest problem” – Medvedev

Published: 12 January, 2010, 20:57
Edited: 31 January, 2010, 10:11

RIA Novosti / Vitaly Ankov

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TAGS: Medvedev, Russia, Crisis, Prime Time Russia, Economy


The number of registered unemployed in Russia will reach 2.2 million this year - according to the government's forecast.

As Russia’s President Dmitry Medvedev pointed out, the problem of unemployment remains the biggest challenge for the new year.

“I think this year the unemployment will remain the biggest social problem for our country. The modernization of the economy, which I announced last year and the course we are following now should lead not to a decrease in the number of working places, but on the contrary – create more in the field of high-quality production. I consider this to be yet another essential goal,” Medvedev said.

With analysts throughout the world being cautiously optimistic when saying that the global economy is on an upswing, unemployment rates still seem to be plummeting. In Europe alone, 10 per cent of the population were unemployed at the end of last year, and in December the US lost another 85,000 jobs, which put more pressure on the government as the multi-billion dollar bailout package did not seem to have had any impact on unemployment.

President Medvedev acknowledged that the labor markets are usually the last to see the effects of the upward swing of the economy, but he said that this is not a reason for the government to relax.

“This is not an excuse for us to sit still. The government, the unions and the employers must be more active in creating new jobs. I have repeatedly stressed this in meetings with regional authorities, in particular. My two main questions are always: the level of unemployment and the amount of unpaid salaries that companies owe their workers,” Medvedev said.

The way Russia plans to deal with this problem is to coordinate the efforts of the government with those of the unions and those of the employers. President Medvedev said that what needs to happen is the restructuring of existing jobs as well as the creation of new ones.

As Evgeny Reyzman, a lawyer for Baker&McKenzie pointed out, hiring staff is usually the last step for an upward-moving company.

“It takes time to restart old projects, to start new projects, and then to rehire people. Rehiring of staff is done at the final stage,” Reyzman said.

The fear of the economic crisis and so-called “seasonal unemployment” were two main reasons behind job cuts in Russia in 2009, according to Yury Efrosinin, Commercial Manager for Kelly Services.

“Speaking of unemployment is very interesting because starting in September we faced the growth of demand from companies. Companies are seeking new staff and, at the same time, unemployment is growing. This is a contradiction from the one side, and from another side I would say that there is no contradiction because those unemployed personnel on the market are probably not qualified enough, and in some cases there are different expectations,” Yury Efrosinin said.

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Biloxi January 30, 2010, 15:00
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Americans have no business deciding how Russia operates business, when our own has been outsourced to Russia, China, et al. As early as 2001, the INTERNET was seriously censored and compromised. Thus, NO "free market capitalism." AND, therefore, EQUAL chances to completely evolve uninterrupted is not going to be, no, not by any stretch of the imagination are the thoughts of greater capable of flying high on the trapeze of life. Humans who have decided equal is their oyster to shuck while THEY-THEM ("Gods of Money," F.W. Engdahl) use China and Russia both as the low level base (imagine countries with centuries and centuries of wisdom) for an Anglo-Saxon bad nightmare of yesteryear. 2.2 million unemployed = 2.2 million imaginations to CO-CREATE how this can be other than what it is, it is the mind that got us into it and it is only the mind that can get us out. How many minds are actually thinking rather than lamenting or, imagining rather than not? Children can draw the new Russian Federation's Constitution? Can this be created into books which teach more than just Russian children how magnificent Russia is in this time? I would imagine so in all the languages of the world. Then, how about instead of waiting for another 150 years for a great storyteller to write and conduct seagull stage plays - do it now and take the burden off God. Money is not God's message, human creative genius imagination is.

K.e January 13, 2010, 09:53
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I personally believe "Modernizing Russian Businesses" is about using the large core infrastructure to create many more, off shoot smaller leaner self propelled and information aware businesses, at which point corruption will get caught up in the idea that a common man or woman can run a little self contained business, pay fair tax and make more net wealth than before., at which point corruption becomes irrelevant. I think an idea to gauge the real citizens aversions to tax is to introduce a completely and totally voluntary ‘Go Russia’ (or whatever anyone could call it) (something patriotic anyhow) ‘TAX’ and make it a very small amount, an amount that is so small as to be irrelevant or even make it a totally voluntary TAX of any amount. The point of this is not to raise funds or credit but to see how many citizens pay anything at all, if the failure to pay rate is sky high (assuming the exposure of the donation is enough)(i.e everyone knows about it) then this would probably suggest that the aversion to tax is rooted in a physical inability to pay, or a complete unwillingness , which as a citizen would have to be the same thing. (who wouldn’t want to help their own country?) This probably suggests that the citizens feel that taxes are too high and people feel the return is to small. Everyone says taxes are too high, it would be interesting to see what they do instead of say. it would be important to call the donation a TAX. For psychological reasons. Hey, life’s about opinions . yeah?

K.e January 13, 2010, 09:38
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Sarah , it's just my opinion but the idea of 'Modernizing Russia' is all about avoiding the mercy of the business elite. Think about this; What are the biggest and largest 'elite' companies or Businesses, lets even look at the word 'elite', it means exclusive, what is an exclusive company? Clearly a single or monopoly business, these by nature tend to be the large and lumbering: 1. Credit ‘Debt’ institutions. 2. Natural pre government owned institutions. Now, just about the worst possible scenario occurred when these natural monopolies fell into the hand of individuals that no longer even had a semblance of a care for the people in which inhabit the earth they sit on. I’m sure everyone in Russia is well aware of that scenario and no more needs to be said, now what is the natural normal evolutionary response to, single restricted monopoly corporations. it has to be modern small, 'self credited' information aware businesses. How does that help you today? Yeah..., probably not very much. But, if you can’t see an improvement at all I’d say that the issue is that credit is still restricted or tied up in semi legal or illegal institutions , in my opinion only, the government of the day has ultimate responsibility to provide free flow of legal tender for normal business purposes, enough to allow competition and fund small businesses, the trick is stopping monopoly and thus a ‘funding’ of the enemy. Which is ‘elite’ business. So the process is slow.