The Decline Has Gone Uphill

Silhouette figures trying to keep a ten-ruble in the air next to an inscription that reads, "Not everything is in our hands." Petersburg, May 23, 2016. Photo by the Russian Reader
Silhouette figures trying to keep a ten-ruble coin in the air next to a stenciled inscription (left) that reads, “Not everything is in our hands.” Petersburg, May 23, 2016. Photo by the Russian Reader

Russia Level with Kazakhstan in Wages
Maria Leiva
RBC
May 24, 2016

In 2015, the average Russian salary, in terms of US dollars, was equal to the level of wages in Kazahkstan, according to data from the Higher School of Economics (HSE). Compared to 2014, the salaries of Russians dropped by almost a third last year.

The observed decline in wages in Russia has led to their drawing level, late last year, with average wages in Belarus and Kazakhstan in previous years, experts at the HSE have calculated in their May monitoring of the populace’s socio-economic status and social well-being. Computed on the basis of exchange rates, the average wage in Russia last year was $558 a month, which is lower than the 2014 level by 34% or more than a third. By way of comparison, in Kazakhstan and Belarus, the average monthly wage, calculated using the same method, was $549 and $415, respectively.

From 2011 to 2015, Russia had the highest level of wages in the CIS, but in 2014, compared with 2013, it dropped by nearly 10%, from $936 to $847. The experts at the HSE note that the gap in economic performance indicators between Russia and certain CIS countries has been constantly contracting. For example, the average salary in Armenia in 2008 was around 52% of the 2015 Russian wage, but by the end of the period in question, it had grown to 60%. During the same period, Belarus has gone from 61% to 75%, and Tajikistan, from 17% to 26%. However, over the same period, the relative positions of Azerbaijan, Moldova, Ukraine, and Kazakhstan have declined.

If we compare the average wage in Russia and Central and Eastern Europe, the wage in those countries has exceeded the average in Russia for the past five years. Thus, last year, the average Russian wage came to 60% of the average wage in Hungary, and 50% of the average wage in the Czech Republic. However, in 2015, Russia came close to the level of wages in Bulgaria during 2013–2014.

Trends in the average monthly wage in Russia, Brazil, and China over the past five years show that wages in Brazil were higher than in Russia last year. Despite the fact that data on wages in China for 2015 have not yet been published, the figures for Russia in 2015 were lower than for China in 2012, 2013, and 2014, indicating the gradual reduction of the gap between the two countries in terms of this indicator.

Last week, Sberbank also reported a fall in the average monthly Russian wage below China’s average wage. The bank’s principal analyst, Mikhail Matovnikov, cited data that the average monthly wage of Russians had fallen below $450 a month, lower than that in China, Poland, Serbia, and Romania.

Translated by the Russian Reader. Thanks to Valentin Urusov for the heads-up.

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