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The Lost Decade: Russians' incomes are now lower than in 2013

The real incomes of Russians have increased over the year, but they are still less than ten years ago. The Russian edition of The Moscow Times writes about this.

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In 2023 real incomes of the population increased by 5.4%, this does not take into account inflation and mandatory payments. In nominal terms, per capita income increased by 10.9% and amounted to 50,265 rubles.

The main reasons for income growth are the personnel crisis and a decrease in inflation. Unemployment last year set a historical record – 2.9% in the fall (3% in December), companies in all industries are complaining about a shortage of workers.

In general, the need for workers is at a historical high, and the gap between supply and the demand for labor is minimal. Therefore, wages are growing at a rapid pace, noticeably faster than productivity growth and inflation.

The slowdown in inflation from 11.94% in 2022 to 7.42% in 2023 also affected real incomes: social payments last year were indexed for increased inflation.

Income growth is likely to continue this year. The crisis in the labor market will not be resolved soon; surveyed analysts predict unemployment to remain at abnormally low levels and real wages to grow by 2.4% this year. Inflation is forecast to slow to 5.1%, and pensions and other payments will be indexed in accordance with last year’s 7.4%.

But even in this case, real incomes will be good if they reach the 2013 level. So far they remain lower – and this has been the case for 10 years.

minfin.com.ua

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