Rural employment in Russia: Present conditions and prospects for agricultural and non-agricultural sectors

Russian Journal of Economics. 2023. Vol. 9. No. 4. P. 351–370.

Nikulina Y.

Contributing to a discussion on rural employment forecast in Russia, this paper sys­tematizes the challenges for the rural labor market: population outflow, weak impulses to develop non-agricultural employment and rural entrepreneurship, changing labor needs in agriculture and a decline in the number of labor migrants. The results of the regional differentiation research show that the response strategies of Russian regions to stabilize employment differ significantly and include active intra-Russian labor migration or reliance on high agricultural state support, development of self-employment and jobs preservation in labor-intensive, low-productivity sectors of agricultural production. The article discusses rural development prospects associated with the return migration of urban residents to rural areas, which creates a new basis for rural employment growth. A theoretical implication of the rural employment perspectives discussion is the proposed concept of “out-of-urban employment” that actualizes the traditional approach of seeking employment only for indigenous rural people who have lost their jobs in agriculture, and includes new types and forms of employment for urban dwellers. Analysis of the current state support for rural employment in Russia shows that it is poorly aligned with the existing challenges. The scale of both financing and the number of potential participants is small; direct support measures are limited to the agricultural sector, while indirect ones — through support for rural infrastructure — create mainly public sector employment. The practical implications of the outcomes are some proposed ways of developing measures to support rural employment, taking into account non-agricultural rural economy needs.

Keywords: agricultural policy, rural development, rural employment, employment structural transformation