The Ministry of Labor identified 663 thousand Russians employed in the shadow sector of the economy – Kommersant

Monitoring by the Ministry of Labor showed that in 2022, 663,882 citizens were in informal labor relations. This is reported “News” with reference to the ministry’s report.

To solve the problem, the Ministry of Labor intends to:

• analyze how to encourage companies to reduce informal labor relations in high-risk (in terms of shadow employment) industries (including trade, services, hotel and restaurant business, construction, transport and agriculture);
• legally define the concepts of shadow and platform employment;
• create and maintain a publicly accessible register of employers who have been found to have illegal employment – the department hopes that this will help speed up the legalization of labor relations.

In September RBC reportedthat the Ministry of Labor has developed a draft methodology for assessing the number of Russians employed in the shadow sector of the economy, as well as for determining target indicators for its identification. Based on the calculation formula proposed by the department, regional authorities will set KPIs for the “legalization” of such Russians. It is expected that in three years 30% of the shadow sector will be “whitewashed”.

According to the forecast of the Ministry of Economy, technological progress will remove more than 700 thousand Russians from the labor market. The agency expects that the demand for personnel will fall in four areas – agriculture, trade, finance and insurance.

Details are in the Kommersant FM article. “The labor market will get rid of unnecessary things”.

Laura Keffer