Russia’s unemployment rate remained at a historic post-Soviet low of 2.4% in the first two months of 2025, according to Finance Minister Anton Siluanov, who credited job creation and rising incomes for the improvement in labour market conditions. (chart)

Speaking at the 51st session of the International Monetary and Financial Committee spring meeting – the governing body of the International Monetary Fund – Siluanov said the Russian economy had shown strength despite “challenging external conditions.”

“Against the backdrop of challenging external conditions, the Russian economy has demonstrated resilience,” he said in prepared remarks.

“The expansion of economic activity has been accompanied by job creation and rising household incomes. Over the past two years, employment has increased by more than 2mn workers, while the unemployment rate has declined to a historic low of 2.4% (as of January-February 2025),” he added.

Siluanov said real disposable incomes are estimated to rise by 7.3% in 2024, up from 6.1% in 2023, suggesting sustained growth in consumer purchasing power. However, wage growth has also been driven by the chronic labour shortage caused by Russia’s war with Ukraine.

He also cited “robust” capital expenditure, which is also connected to the war, as a key support to Russia’s economic momentum. “At the same time, investment activity remains at an elevated level (7.4% growth in 2024), which will contribute to the increase of productive capacity in the coming years,” he said.

The remarks come amid a shift in Russia’s trade and investment ties toward non-Western partners. Russian officials have increasingly highlighted domestic economic indicators to demonstrate the country’s capacity to adapt to external pressures and glossed over the persistent economic problems such as overheating, high inflation, high overnight rates and slowing economic growth.