Cart (0)
business newsRussian Unemployment Down Nearly 30% Since Financial Crisis
Joblessness in this country has not been this low since September 2008.
PRINT
 |
|
On Tuesday, Russia's unemployment rate came in very favorably at 6.4%, crushing analysts' expectations of 7.0%, according to Bloomberg.
Russia's unemployment rate has not been this low since September 2008. At the end of 2009, it was well over 10%.
Domestic demand has been steadily increasing in Russia's domestic markets, which may have led to increased capital investment in the BRIC country. Fixed capital investment is up 7.4% year-over-year.
Russia is a major exporter of crude oil, and the strength of its economy may correspond strongly to the commodity's price.
Crude oil was down significantly in 2009, as fears of a global depression dampened demand for the industrial commodity. Since then, oil has been rallying in price, and though the price of oil is near 50% off its highs, the gradual run-up in the price of oil may be heavily contributing to Russia's economic growth.
Perhaps validating this line of reasoning is a similar phenomenon in the oil-exporting country of Canada. Granted, Canada's recovery has not been as pronounced as Russia's, but the countries have followed a nearly identical pattern in their unemployment rates. Canada's unemployment rate spiked in 2009, before gradually falling near 7.0% in recent months.
Canada's recovery may be dampened by its ties to the United States. The US is Canada's largest trading parter, receiving the majority of the country's exports.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
