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Social Sphere 100% 8,Other activities 80% 11,28,Services** 11,Transportation and 60% communications Wholesale and retail trade, repairs 17,40% 32,Construction Processing industries 20% 16,Agriculture and forestry 12,9,10,6,0% RF 2008 IRS, 2008 IRS*, Jan-Oct * For the notices from the employers on the attraction and engagement of foreign citizens for labor activities who arrive in the Russian Federation under the procedure that do not require visa issue.

** Financial operations, transactions with real property, education, healthcare, other utility-related social and personal services.

Sources: Data of the FMS of Russia. Labor and employment in Russia 2009, Rosstat, 2010.

Fig 12. Distribution of employees by types of activity in Russia, in % Table Certain parameters of the employment of CIS migrants (the results of the 2008-2009 survey, No 1575) in % of the number of the respondents in this sector) Written employment contract Salary paid according Sector Work permit available in place to payroll Construction 60,9 51,3 33,Trade 56,5 48,4 31,Industry 79,7 75,4 59,Utilities & housing 58,0 56,0 53,Public services 50,6 46,6 30,Transportation 80,0 77,4 47,Agriculture 71,2 53,8 40,Services for household (nurses, 51,4 51,4 17,babysitters, housemaids, etc.) Sourse: Survey of labor migrants from the CIS countries carried out by the Center for Migration Surveys (Leader E. V. Tyuryukanova) in Moscow, St-Petersburg, Astrakhan, Voronezh, Kazan and Krasnodar.

RUSSIAN ECONOMY IN trends and outlooks Thus a general statement can be made that the crisis standards continued to be used in the migration even after the crisis was officially over. To be more accurate, there was another victory of the forces interested in shadow employment of the foreign labor force.

With account of the approximate scale of the migrant employment in Russia, the geography of their entry and exit can be defined but only roughly. Unlike early 2000es, when the far-abroad countries officially domineered on the Russian labor market and Ukraine was leading among other CIS countries, now it is the countries of the Middle-Asia region that play a leading role on the market. These countries in total account for more than a half of all the registered migrants. (Table. 7).

The geography of the migrants on the labor market did not change: according to the 1H 2010 data, 29.2% of all the registered migrants have been employed in Moscow and the Moscow region. In this context, all other regions including St.-Petersburg (6.3%) and the Krasnodar Krai (2.4%) seem not to be covered with employment of the foreign workforce.

In 2009 2010, the official migrants accounted for about 3.1% of the total number of the employed in Russia. This is a lower number as compared to the majority of OECD countries.

Given the expert estimates of the illegal migration (in 2009 3.25.2 million people1), the total scope of the foreign workforce employment on the Russian market will be within the range of 4.77.7% of the total number of the employed. For comparison: in the USA, illegal migrants make up to 5.2% of the total number of the employed 2.

Table The number of foreign employees engaged in labor activity in Russia, 2000in thousands people in % of the total number 2000 2005 2008 2009 2000 2005 2008 Total 213,3 702,5 2425,9 2223,6 100 100 100 including:

CIS countries 106,4 343,7 1780,0 1645,1** 49,9 48,9 73,4 74,out of them:

Azerbaijan 3,3 17,3 76,3 60,7 1,5 2,5 3,1 2,Armenia 5,5 26,2 100,1 82,0 2,6 3,7 4,1 3,Georgia 5,2 4,3 4,2 2,4 0,6 0,2 Kazakhstan 2,9 4,1 10,4 11,2 1,4 0,6 0,4 0,Kirgizia 0,9 16,2 184,6 156,1 0,4 2,3 7,6 7,Moldavia 11,9 30,6 122,0 101,9 5,6 4,4 5,0 4,Tajikistan 6,2 52,6 391,4 359,2 2,9 7,5 16,1 16,Turkmenia 0,2 1,5 3,1 2,4 0,1 0,2 0,1 0,Uzbekistan 6,1 49,0 642,7 666,3 2,9 7,0 26,5 30,Ukraine 64,1 141,8 245,3 205,3 30,1 20,2 10,1 9,far-abroad countries 106,9 358,7 645,0 577,3*** 50,1 51,1 26,6 26,out of then:

Vietnam 13,3 55,6 95,2 97,5 6,2 7,9 3,9 4,China 26,2 160,6 281,7 269,9 12,3 22,9 11,6 12,USA 1,8 2,9 5,0 5,0 0,9 0,4 0,2 0,Turkey 17,8 73,7 130,5 77,2 8,4 10,5 5,4 3,* including the citizens of Byelorussia 11.1 thousand people.

** without Georgia.

*** With Georgia.

Source: Russia in figures of 2010. Rosstat, 2010.

Main conclusions of the expert meeting Consensus-assessment of the number of labor migrants in Russia, April 9, 2010/ Center for Ethnic, Political and Regional Studies within the CEPRI Project immigration to Russia a social parameter jointly with the project of the Foundation New Euroasia Migration Barometer in the Russian Federation // http: www.indem.ru/Ceprs/Migration/ExSoCoOc.htm Jeffrey S. Passel, Pew Hispanic Center Washington, DC U.S. Immigration: Numbers, Trends & Outlook.

Section 5.

Social Sphere The process of legislative regulation of the external labor migration has continued. The legislative innovations of 2010 set up norms for engagement of visa-free migrants according to the migration patents established by the government on top of the established quotas. After July 1 2010, Federal Law of 25.07.2002, No115-FZ On the legal status of foreign citizens was amended accordingly.

The introduction of such patents has been discussed at length. According to the law, migrants from visa-free countries are entitled to use such patents to be employed privately. According to the FMS, annually about 3-4 million of migrants are engaged in repairs of apartments of the Russian citizens, work at their subsidiary plots, employed as nurses, baby-sitters, etc. However, even those who moved to Russia and registered legally could not be employed legally as it was actually impossible to count those working for households. According to the new provisions, a migrant can receive a patent after he/she is registered, under a selfdeclaring procedure, after he/she undergoes the procedure of dactyloscopy and photography and pays a monthly fee of RUR1,000. After the entire period of the migrants work under the patent expires (not more than 12 months) the migrant will pay a total tax (including prepayments). The total tax amount, however, subject to payment to the respective budget shall be calculated on the actually received income (at 13% rate). Thus, if a migrant gets monthly a sum exceeding RUR7,692, the migrant will have to pay an additional tax after his/her employment is finished. The mechanism of implementation of such rules is not totally clear.

According to the new provisions, the employers will have to report to the FMS on the conclusion/termination of the employment contracts with foreigners and on unpaid vacation leaves (for a period exceeding one month).

The patents introduced for migrants were called to withdraw from the shadow a part of the migrants who work for individuals, to ensure surplus revenues to the national and local budgets (some of the revenues from the imputed tax equal to RUR1,000 will be remitted to local budgets).

So far it is unclear how these rules will be applied practically. There is an opinion that the migrants who may fail to use the quota but who wish to work in Russia on legal terms will try to receive patents. According to the FMS estimates, in 2011 at least 1 million expatriats will use their right to patents1. By November 1, 2010, patents for 100,120 people were issued.

Another innovation effected by the amendments in Federal Law No115-FZ of July 1, 2010, was designed to alleviate a work mode and accommodation terms for high-qualified specialists. The quotas for them were abolished; such specialist and his/her family was entitled to get a residence permit for more than 5 years; to do this, such specialist should not live in Russia for one year (this was the earlier requirement established by the legislation for all, without exception, applicants for naturalization in Russia). According to the law, the high-qualified workforce include those specialists whose labor is worth two and more than two million rubles for the period under one year, i.e. who legally earn over RUR166,000 per month. For months (since the date of the amendment being effective), 1,456 migrants were issued work permits (under a high-qualified specialist option), and 93% of them are migrants from the classical abroad2. Apparently, the majority of such migrants lives and works in Moscow.

This novelty will hardly affect the regions.

M. Moshkin. Migrants have been patented//Time for News. May 21, 2010.

The FMS of Russia official web-site http: www.fms.gov.ru RUSSIAN ECONOMY IN trends and outlooks Besides, there is a strong competition to receive the status of a high-qualified specialist.

Good specialists even from the CIS countries prefer other countries to Russia 1. Finally, it is worth noting that though the migration novelty is aligned with the strategy of innovative development and modernization, present-day realities of the labor market are more pragmatic and create a niche of low-qualified workers.

To summarize, the official end of the crisis has not brought about a visible normalization in the labor market and migration. The quotas are still an acute problem of the entire system.

The mechanism of providing quotas is exposed for bribes and difficult for implementation in all the sectors be it education, healthcare or migration. It is inefficient in the context of protection of the national labor market; neither it reflects the demands of the economy in the workforce. Other significant barriers on the way of legalization of the migrants are shadow economic relations in Russia. Such relations occur to a greater extent in the sectors where migrants are employed. Thus, e.g., a share of illegal migrants in the Russia agriculture is as high as 58.1%, in the wholesale and retail trade sector - 37.7%, in the construction sector 23.2%, in utilities and personal services sector 21.1%2.

5.3.3. Internal migration The internal mobility of the population is primarily related to the housing market, due to a number of reasons, and is insignificant. The difference in the unit price of one square meter of housing in a standard building located in a capital and even in a regional center and other towns and settlements is so high that makes any move, especially for a large family with many children quite unrealistic. For reference: the average price of 1 sq. m in a one-room apartment of the secondary housing stock in Kaluga (with population of 327.7 thousand residents) is in the range of RUR 4962 thousand, in Kirov (which occupies the forth place in the Kaluga region in terms of size and has 38.6 thousand residents as of January 1, 2010) - RUR2025 thousand. Similar parameters are demonstrated in Yaroslavl (706.9 thousand) RUR4057 thousand, in Rybinsk (second largest city of the Yaroslavl region, 206.7 thousand people) RUR2430 thousand, in Yekaterinburg (1,343.8 thousand) RUR5060 thousand, in Nizhny Tagil (second largest city in the Sverdlovsk region, 373 thousand residents) RUR2028 thousand3. Thus, even inter-regionally, a family moving from a district center to a regional center will have to overcome at least two-fold housing price barrier while a move from countryside to a city cannot be made without reliable support of the kinship. There are just a few hostels through which the majority of village inhabitants moved through on their way to cities in the 1970 1980es. The housing rent is high, besides, the stock of rented housing is quite large in Moscow (15% of apartments are rented out, as estimated) but insig Addressing the conference Development of proposals for inter-government regulation of labor migration of Russia and Byelorussia Deputy Head of Social Policy Department, Standing Committee of the Union state, O.

Vinogradova noticed: Russia says it needs qualified labor hands. But we need them too! We take care of them and create good conditions. Moreover Poland, France and Italy compete for them offering more favorable options than Moscow. Therefore, not the best HR arrive here//A. Druzhinina. Fight for love. New updates. September 23, 2010.

Data of the Population survey on the employment issues, 2009, Rosstat, 2010.

Calculations made using the data from the sites Real estate in Kaluga and the Kaluga region http://www.kalugahouse.ru/, Real estate in the Yaroslavl region http://nedvizhimost.yar.slando.ru/, Real estate in the Sverdlovsk region http://nedvizhimost.slando.e-burg.ru/ Section 5.

Social Sphere nificant across the country (5%)1. Only a few employers are ready to provide a temporary residence together with a job place (not more than 5% of vacancies).

The survey of the internal mobility of the unemployed and those seeking for job carried out in all regions of Russia under a Rostrud order2 in two waves before the crisis (October 2008) and during the crisis (December 2009) demonstrated that the willingness to work in a different region was not connected with the unemployment growth (4.2% before and 4.4% during the crisis survey). To make a move realistic, the proposed wage was to be larger by 3.times (before the crisis) 3.1 times (during the crisis) vs the average wage paid at the last job of a migrant, i.e. be within the range of RUR 36.539.7 thousand; while RUR66 thousand were required to relocate to Siberia and Far East (from other regions) There are no realistic grounds for increasing the current low internal mobility of the population: the countryside resources are exhausted, the age structure of the population corresponds to a high level of demographic aging 4, the attained involvement of women into labor relations is an additional anchor to keep a household away from mobility; uniformity of sociolization channels that occurred in the 1900-2000es (with the help of relatives and acquaintances only) has become another obstacle for development of internal mobility. 57-60% of the Russians while looking for a job in the 2000es named their friends, relatives or acquaintances as the main source of the job search. In some of the Russian regions (besides Chechnya, where this indicator was as high as 90.5% in 2009) Oryol, Tambov, Lipetsk regions, Kalmykia, Chuvashia, Tatarstan, etc. the indicator exceeds 70%. It means that free agents cannot fit in into a local labor market. In addition, the search for a job using close relatives channels enhances the informal aspect of the labor market. The farther to the East we move, the higher becomes an opportunity to find a job by using other, more market-like channels; but the main migration flow during the 1990-2000es moved to the opposite direction called Western drift.

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