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Bank of Russia sees signs of softening in labor market

According to surveys, the share of enterprises experiencing labor shortages continues to shrink

MOSCOW, July 25. /TASS/. More and more signs of lower strain in the labor market emerge but the unemployment rate remains historically low, the Bank of Russia said after the Board meeting on the key rate.

"There are more signs of a softening in the labor market. According to surveys, the share of enterprises experiencing labor shortages continues to shrink. Labor demand in certain industries has been decreasing with a reallocation of employees across industries. Wages rise more slowly than in 2024, but their growth rate is still outpacing the growth in labor productivity. The unemployment rate is at its record lows," the regulator said.

The Bank of Russia kept the key rate at 21% per annum at Board meetings in December 2024, February, March and April of this year. The regulator reduced the key rate to 20% per annum in June 2025 and loweed it further to 18 per annum today.