Changing employment in Russia for the better

The unemployment rate has eased 1% over the last year but President Medvedev says it remains a major issues. Business RT spoke with Felix Kugel Vice President of Manpower Russia and the CIS about the Russian employment outlook.

RT: How serious a problem is unemployment in Russia?

FK: “The problem is serious for any country, at any given day or age. But I do think there’s a lot of resurgenceas it was previously reported – that’s on the one hand. On the other hand, Russia is a unique situation, where basically someone wishes to find job. And there’s plenty of jobs available.”

RT:  From your point of view, what measures are needed to significantly reduce the unemployment rate in Russia?

FK:  “I do think that the drive to reduce unemployment rate has to be done, or had to take place yesterday, for tomorrow. And so it begins with education, it begins with all kinds of systems, it begins with a proper legal base, so that the employers are able to employ without having to maintain a huge amount of risk.”

RT:   According to some analysts Russia is known as the costliest human resource market in the world.  Why is that the case?

FK:  “Well one of the biggest issues is that Russia has become, has been for some time, a quickly emerging economy.  And the quick pace that it was emerging was eating up talent, whether it is talent or not.  We need to understand fully is that we are seeing a change, from capitalism to talentism, and talent is what will drive the economies forward.  And that is why the identification of the talent, and the proper grooming of talent is extremely important.”

RT:  And ageing populations, this is definitely a burning issue across Europe and in the US.  But is Russia facing the same problems?

FK:  “I do think so.  The demographic shift in Russia is extreme, and the population is ageing and the pressure on the government from the pension funds and so forth is going to be huge. And so how do you bring the talent, however old it is – I mean people do have experience – how do you bring it back into the workforce? How do you make them want to work, not need to work – there is a big difference in that – and those issues, if they are not burning now, they will be burning in the near future.”