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Socio-Economic Situation During the Pandemic Spring 2020

Aleksandra G. Polyakova – Leading Researcher of the Russian Presidential Academy of National Economy and Public Administration, Doctor of Economic Sciences, Professor (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.  

Anna A. Cheremnykh – Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Victor Yu. Lyashok – Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Elena Е. Grishina – Leading Researcher of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

A slowdown in Russia’s social and economic development has become unavoidable under the new coronavirus pandemic restrictions. The decline in economic activity began in March 2020. Than a period of non-working days and the regime of self-isolation had a significant negative impact on final consumption. In May 2020 the Russian economy demonstrated the decline of GDP by 10.9% as compared to May of previous year. GDP for the first five months of 2020 decreased by 3.7%.

In March 2020 retail trade turnover increased by 6% as compared with March 2019. In April and May 2020 there was a decrease by 23 and 19% in annual terms, due to the fall of non-food products sales by 36 and 29%, respectively. Consumption of paid services decreased by 40%. Together with the government measures, the contraction of demand did not change the consumer prices dynamics – since the beginning of the year prices have increased by 2.4%.

In the first three months of 2020 the unemployment rate was decreasing, the number of employed remained at the level of the previous year. In April-May, the number of unemployed increased by almost a third, and unemployment rate reached 6.1% by the end of May. The number of people registered as unemployed at the employment services rose from 0.7 million by the end of March to 2.1 million people by the end of May.

According to the INSAP RANEPA telephone survey, 28% of working respondents in April 2020 received a lower salary than in March, for 10% of them the salary decreased twice or more. By May, 9% of employees’ working time was reduced, 5% of employees were sent on paid leave, 4% – on unpaid leave. In May one third of the population assessed their financial situation as “bad” or “acceptable, but with negative dynamics”. At the same time, financial situation of a quarter of the population was stable and positive.

According to Rosstat, a year ago there were 26.5% population with “bad” and “very bad” material well-being assessement; in 2Q 2020 the number increased to 31%.

In the second quarter of 2020, real disposable money incomes of the population decreased by 8.0% compared to the second quarter of previous year. A more significant annual drop in real incomes of the population was registered only in 1999.

The article was written on the basis of the RANEPA state assignment research programme.

Key words: labor market, wages, monetary incomes of the population, consumption of goods and services, social well-being, social support programs, coronavirus.