The Ministry of labor has predicted the fall in real wages of Russians 3-4%

As stated by the labor Minister Maxim Topilin, the Agency does not expect a dramatic fall in real wages. “They will be, maybe a little bit reduced… But it will be within 3-4%”, – quotes the Minister TASS news Agency.

Critical, according to Topilin, will not and rising unemployment, which will be in the range of 6-6,2-6,3%. Labor Minister believes that this figure is acceptable.

Also Topilin said that the Ministry is preparing a bill that will increase the maximum unemployment benefit at 70%, but to distribute this benefit is offered more targeted. It is about the redistribution of allocated resources in favor of those people who have long histories and were in a difficult situation.

According to the report of the Institute “development Center” Higher school of Economics, in January the average size of real wages in Russia decreased at an annual rate of 6.1%, and given the fact that in January of last year it fell by 8.4%. The risks of a further fall in real wages during recession are getting stronger, including because of rising expected inflation. According to the consensus forecast, in 2016 it will be in Russia approximately 8.9%, and the yield on the stated Central Bank medium-term target of 4% of the experts seems unattainable in the next 10 years.

This week the forecast of economic development of Russia has lowered the credit rating Agency standard & Poor’s. According to experts of Agency, this year Russia’s GDP will shrink by another 1.3%, whereas previously it was expected that the economy will be able to recover after the fall of the previous year (-3.7 percent) and will grow by 0.3%. Previously their forecasts worsened and other representatives of the “big three” rating agencies: Fitch expecting GDP to 1%, and Moody’s is 2.5%.