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Migration and Remittances. Eastern Europe and the Former Soviet Union / Ed.by Ali Mansoor and Bryce Quillin. The World Bank, Europe and Central Asia Region, 2006. p. Zayonchkovskaya Zh. A., Mkrtchyan N. V. Migratsiya. Naseleniye Rossii (Migration. Population of Russia). 2003 2004. Odinadtsatyi dvenadtsatyi yezhegodnyi demograficheskiy doklad (Eleventh twelfth annual demographic report). A. G. Vishnevsky, Executive Editor. M.: Nauka, 2006. P. 315.

Mukomel V. I. Migratsionnaya politika Rossii: postsovetskiye konteksty (Russias migration policy:

post Soviet contexts). M., 2005. P. 194.

Vremya novostei. December 12, 2006.

Molodikova I. N. Osnovnye etapy i metody regulirovaniya trudovoi migratsii v zapadnoyev ropeiskikh stranakh (Major phases and methods of regulation of labor migration in West European countries) // Trudovaya mobilnost v SNG: sotsialnye i ekonomicheskiye effekty (Labor mobility in the CIS: social and economic effects). Zh. A. Zayonchkovskaya, Executive Editor, Moscow, 2003. P. 285.

Problemy nezakonnoi migratsii v Rossii: realii i poisk resheniy (Problem of irregular migration in Russia: reality and search for solutions). M.: Gendalf, 2004. P. 496.

RUSSIAN ECONOMY IN trends and outlooks As concerns the three components of illegal migration illegal entry, illegal stay and illegal employment illegal employment is the dominating factor26. The data collected in the framework of a survey of migrants residing in Russia less than 2 years revealed that 46 per cent of them are not registered at their places of work27. The fact that migrants have no work permits (30 per cent of respondents as established in the course of the study Irregular migration in / from Russia 28), as well as undocumented labor relations are evidence that in the 2000s in Russia there formed a situation, where employers see the illegal status of migrants as a benefit due to a number of economic factors (cheap labor, lack of rights as concerns mi grants, tax evasion, flexible labor schemes, opportunities to infringe on working conditions, open ended working days and so on).

In the 1990s and 2000s, the segregation of labor niches as local, migrant and mixed, as well as the use of illegal employees and processes of formation of ethnic labor networks were frequent developments also in other East European countries.

Internal migration In 2006, the trends, which have been observed in the sphere of intraregional migration in Russia, persisted. , .

A. Stabilization of the number of internal migrations. The extrapolation of the data on the number of interregional migrations occurring in January through Octo ber of 2006 to the whole year demonstrates an almost carbon copy of the situation observed in 2004 and 2005 (see Fig. 3), when intraregional migrations embraced 0.6 per cent of the countrys population and yet another 0.75 per cent of migrants resettled within their respective regions.

B. Persistence of directions of migrations, areas of outflow and inflow of mi grants.

As concerns the vector of intra Russian migrations, the South West direction of the flow persisted. Only two federal okrugs Central and North West, which in clude both Russian capitals demonstrated a positive migration balance. At the same time, the intensity of increase in population based on internal migration in the Central federal okrug is 4 times above the figures registered in the North West fed eral orkug. The main factor behind this difference between these two leading ok rugs is the size of the zone, from which migrants actively outflow there. While North East, as earlier, attracts migrants only from the north of the European part of the Problemy nezakonnoi migratsii v Rossii: realii i poisk resheniy (Problem of irregular migration in Russia: reality and search for solutions). M.: Gendalf, 2004. P. 496.

The data obtained in the course of the study Transformatsiya postsovetskogo prostranstva:

otrazheniye v migratsiyakh (Transformation of the Post Soviet Space: Its Reflection in Migrations) (2002 2005) (Grant No. 980 0789 3 of the Ford Foundation) of the Center for Migration Studies.

Problemy nezakonnoi migratsii v Rossii: realii i poisk resheniy (Problem of irregular migration in Russia: reality and search for solutions). M.: Gendalf, 2004.

Section Social Sphere country, the Center is the locality, where people migrate from almost all regions of Russia.

Intraregional migration Interregional migration Source: 1990 2005 the data published by Rosstat, 2006 the authors estimates on the basis of the data published by Rosstat in January through October of 2006. See: http://www.gks.ru Fig. 3. Internal migration in Russia in 1990 through 2006 (thous. persons) In contradistinction to the Central and North West federal okrugs, the Far East has since long participated in the exchange of population with all okrugs. It was not an exception that in 2006, when over 10 months of that year the migration based decline in the population of this region made about 19 thousand people. The rate of this decline decreases due to a drop in the migration capacity of many of the re gions of the Far East federal okrug, where population declines rather significantly.

Thus, only over 5 years from 2001 through 2005 the okrug lost almost thousand people, the number equal to three fourths of the population of the whole Magadan oblast.

In 2006, only 20 Russias regions demonstrated a migration based increase in their population as concerns intra Russian migrations, whereas all other regions were characterized by an outflow of population. It should be noted that only 4 re gions (Moscow and St. Petersburg with their oblasts) accounted for 70 per cent of the total internal migration based increase in the size of population. Therefore, al most the total amount of internal net migration relating to resettlements from places of permanent residence is registered in the capital agglomerations. The most intensive inflow of migrants is demonstrated by the Moscow oblast (see Fig. 4), what is caused by the benefits presented by a massive and differentiated Moscow RUSSIAN ECONOMY IN trends and outlooks labor market in combination with cheaper housing and less tough (as compared with Moscow) registration requirements. The opposite situation is observed in the regions situated in the Far East and Siberia (especially in autonomous okrugs), as well as certain crisis stricken regions in the European part of the country.

Source: Information on the social and economic situation of Russia in 2006, http://www.gks.ru Fig. 4. Intensity of migration based increase as concerns intra Russian migrations in January through October of 2006 (migrants per 1 thousand persons) C. Actual absence of attractive regions in the east of the country.

Eastern regions continue to be less attractive for internal migrants only 4 re gions (the Republic of Altai, Aginsk Buryat Autonomous Okrug, the Kemerovo and Tomsk oblasts) demonstrate migration based increase in the size of the population, and only in the Kemerovo oblast it is significant. Both oil extracting okrugs of West Siberia and regions, where there are situated cities, the population of which ex ceeds one million residents (the Novosibirsk and Omsk oblasts) are characterized by an outflow of people.

D. Increasing social and economic differentiation of regions, as well as the growing differentiation in terms of real incomes and purchasing power of the popu lation, becomes a more and more significant factor affecting intra Russian migra tion flows. At the same time, the fact that regions of the European part of the coun try constitute a large and territorially compact conglomerate of territories characterized by economically and institutionally similar conditions and middle general levels of social and economic development lessens migration activity of the population.

Section Social Sphere Temporary labor migration In the 1990s, the development of temporary labor migration, especially in the framework of the CIS, was explosive. This type of migration flows performed a range of important social and economic functions and acquired a massive scale as it was typical in the rest of the world..

According to the data presented by the RF Federal Migration Service of the RF Ministry of Interior, the inflow of foreign employees in the national economy on the legal basis increased from 129 thousand persons in 1994 to 702.5 thousand per sons in 2005, i.e. 5.4 times. In the first six months of 2006, 706 thousand foreign employees worked in the countrys economy. In comparison with the respective period of 2005, the number of foreign citizens legally employed in the Russian terri tory increased 1.5 times. The persistent rapid growth of the scale of the inflow of temporary labor migrants in Russia is evidence of the respective needs experi enced by the Russian labor market and the clearly more attractive nature of tempo rary labor migration as compared with permanent migration. The latter circum stance may be explained by the fact that temporary migrants do not need to purchase expensive housing in Russia, completely change traditional ways of life, and create suitable conditions for their families.

The format of temporary labor migration permits to ignore these needs, but at the same time have jobs and incomes. Due to these specifics, this type of migration is most characteristic for men (the share of men makes 83 per cent), of which the overwhelming majority (more than 90 per cent) are men at the ages ranging from 18 to 49.

According to the official data, in the first six months of 2006, citizens of countries of the world worked in Russia. In spite of the broad geography of coun tries, from where people migrated to Russia, only 7 countries account for about per cent of the total number of legal foreign employees (see Fig. 5).

Source: the data presented by the RF Federal Migration Service of the Ministry of Interior.

Fig. 5. Countries of origin of foreign labor in Russia and their share (in %) in the number of foreign employees in the first six months of 2006.

RUSSIAN ECONOMY IN trends and outlooks The group of countries being exporters of temporary labor migrants to Russia established yet in the early 1990s. Since that time, changes occurred only as con cerned their shares in the numbers of migrating workers. The main change is the constant decline in the share of the Ukraine segment (for comparison: in 1994 the share of Ukraine made 43 per cent) and a growth in the number of migrants from the Central Asian countries.

Similarly to the situation observed in preceding years, according to the data presented by the RF Federal Migration Service of the RF Ministry of Interior foreign employees concentrated in several sectors of the economy: construction (40 per cent); wholesale and retail trade; repair of motor vehicles (28 per cent); agriculture, hunting and forestry (5 per cent); manufacturing industries (8 per cent); transport and communications (4.5 per cent). As in the majority of other countries of the world, the main factor generating employment of foreign migrants is the lack of la bor force in certain sectors of the economy, occupations and types of activities.

Primarily, these are the spheres of employment characterized by large numbers of unattractive jobs. Therefore, even in spite of unemployment registered in Russia at large and its regions there persists the need for labor forces having the necessary level of skills. Due to this circumstance, there exists a contradiction: on the one hand, Russia, similarly to any other state considering itself to be a developed coun try, wishes to attract skilled workers. On the other hand, in the postindustrial situa tion, characterized by much higher requirements concerning the quality of jobs on the part of national labor force and the fact that local residents are not ready to take non prestigious jobs, there increase the need for street cleaners, waste collection workers, baby sitters, loaders, park keepers and people of similar occupations, which have to be imported.

Although the real scale of employment of foreign labor is unclear, it seems that its sectoral structure on the whole follows the distribution of officially employed foreign migrants.

Although on the whole the share of officially registered foreign workers in the total number of employees (about 1 per cent) is significantly below the figures ob served in developed countries of the world29, it is rather high in certain regions of the country (capital cities, oil and natural gas extracting okrugs of Siberia, Primor sky krai, Yevreiskaya Autonomous Oblast and Sakhalin oblast) and has a much more significant effect on local labor markets than the national one.

In spite of the view that migrants steal jobs from local population and thus af fect the levels of wages, salaries and employment, which is widespread in the soci ety30, there has been revealed no clear correspondence between the number of of The share of foreign employees makes 24.6 per cent in the labor force of Australia, 18.1 per cent of Switzerland, 11.7 per cent of the USA, 10.0 percent of Austria, 8.8 per cent of Germany, 5.percent of France // Migration Policy IssuesIOM, 2, march 2003, p. The data collected in the framework of a survey conducted by the Levada Center (July of 2005) provide evidence that 35 per cent of respondents have negative attitudes towards the inflow of mi grants, since migrants take the jobs, which could be taken by local residents // Mukomel V. I. Mi gratsionnaya politika Rossii: postsovetskiye konteksty (Russias migration policy: post Soviet con texts). M., 2005. P. 203.

Section Social Sphere ficially registered foreign employees and the level of unemployment in Russia. For instance, in 2005 the total number of unemployed in the country declined at the background of a growth in the number of foreign employees in Russia. It should be noted that in a number of developed countries of the world there also was not found evidence that migration affects unemployment levels31.

Therefore, it can be stated that the main result of developments observed in the sphere of migration last year was not real changes in the scale and structure of migration flows, but an active process of migration related law making forming mixed expectations of future changes.

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