Economists criticize unemployment statistics in Northern Caucasus

The data of the "Rosstat" (Russian Federal Statistics Service) on the record low unemployment in Ingushetia and Chechnya should not be trusted, as it fails to take into account the informal employment, Professor Natalia Zubarevich has noted.

The "Caucasian Knot" has reported that as of December 2019, Ingushetia, Chechnya, North Ossetia and Dagestan took the last four places in the population employment rating compiled by the "Rosstat". According to the rating, the unemployment rate in Ingushetia was 26.3%, in Chechnya and North Ossetia – 13.6% and 13.4%, respectively, and in Dagestan – 13%.

The "Rosstat" rating disregards the informal employment, which is very high in Northern Caucasus, says Natalia Zubarevich, Professor at the Moscow State University and an expert in regional socioeconomic development.

In the opinion of Ms Zubarevich, no adequate socioeconomic indicators of the situation in the Caucasus exist – the weight of shadow economy is too high in its regions.

She has added that the last time the "Rosstat" made a study of informal employment back in 2017; it showed that in Northern Caucasus this indicator was from 40% to 60%, while on the average in Russia it was 20%.

The "Rosstat" unemployment figures for Chechnya and Ingushetia cannot be trusted, Natalia Zubarevich has concluded. "For Dagestan, these indicators can be discussed. In other republics and regions, the situation is close to the results of the above study," she has summed up.

This article was originally published on the Russian page of 24/7 Internet agency ‘Caucasian Knot’ on January 31, 2020 at 09:45 pm MSK. To access the full text of the article, click here.