1. Introduction

What does «unemployment» mean?

Unemployment is a situation where a person is actively looking for a job but is unable to find one. Unemployment is considered a key indicator of the state of the economy. The most commonly used measure of unemployment is the unemployment rate.

However, what are the leading reasons of unemployment?

— Unemployment occurs when workers who want to work are unable to find employment.

— Economic crises with extremely low unemployment rates and overheating of the economy.

— New technologies, changes in production, and the emergence of new industries.

— Seasonal unemployment, when employment depends on the time of year.

— Discrimination in hiring, lack of information about job vacancies, or high minimum wages.

How is the unemployment rate measured? The unemployment rate is typically calculated by governmental bodies, such as the Bureau of Labor Statistics in the United States or Federal State Statistics Service in the Russian Federation. It’s obtained by dividing the number of unemployed individuals by the total labor force and multiplying by 100 to get a percentage. To be counted as unemployed, one must be without a job, available for work, and actively seeking employment during the survey period.

It’s essential to note that the unemployment rate doesn’t take into account those who have stopped looking for work or those underemployed in part-time jobs when full-time positions are desired. Consequently, while it’s a critical indicator, it doesn’t provide the complete picture of economic health by itself; supplementary metrics and data are often necessary for more comprehensive insights.

If the unemployment rate is high, this could alarm the economic crisis. In turn, if it is low and the economy is growing, the inflation rate might be rising.The economy growing and unemployment decreasing is one of the ways to speed up the inflationary rates, because corporations will predictably raise wages to attract and retain employees.

Conversely, if unemployment rises, inflation may slow because people become poorer and aggregate demand in the economy declines, which keeps prices down.

However, some economists argue that in the long term, unemployment reaches its natural level and stops depending on inflation. In addition, the relationship between unemployment and inflation is affected by labor productivity: If it rises faster than workers’ salaries, the connection between them may be disrupted. Historical data shows that no market economy has ever achieved a sustained zero unemployment rate.

Every country, regardless of its economic development, has experienced periods of joblessness, as it is a natural feature of a dynamic economy with people transitioning between jobs.

What rates of unemployment in Europe? Before continuing, there are some nuances about geopolitical item.

The European Union (EU) is a political and economic union that currently includes 27 countries.

The EU features a single internal market where goods, services, capital, and people can move freely, as well as standardized laws and a legal system. EU member states participate in the decision-making process and have influence over the management of the union.

The European Economic Area (EEA) is an economic agreement that expands the EU's internal market to include three non-member countries: Iceland, Liechtenstein, and Norway. The EEA countries maintain a higher level of sovereignty outside the single market. They are not required to follow EU laws on issues such as foreign policy, defense, or immigration, and they can make trade deals on their own.

In January 2024, 2.898 million young persons (under 25) were unemployed in the EU, there were 2.315 million in the euro area. In January 2024, the youth unemployment rate was 14.9 % in the EU and 14.5 % in the euro area.

Compared with January 2023, youth unemployment increased by 168 thousand in the EU and by 66 thousand in the euro area. Speaking about gender, in January 2024, the unemployment rate for women was 6.3 % and the unemployment rate for men was 5.7 % in the EU. In the euro area, the unemployment rate for women was 6.8 % and the unemployment rate for men was 6.1.

As for Russia, the most recent value is 2.39 percent as of September 2024, a decline compared to the previous value of 2.41 percent. In January, Russia's unemployment rate fell back to a historic low of 2.9 %, compared to 3 % in the prior month. The number of unemployed individuals declined by 139 thousand from the previous month to an all-time low of 2.150 million, but the officially registered unemployed increased to 0.480 million in January from 0.474 million the month before. According to the International Labor Organization (ILO), the unemployment rate among women is 2.5 %, and among men it is 2.2 %.

2. Literature Review

A person’s social status depends primarily on the individual's participation in the economic production systems of society. Therefore, unemployment may significantly contribute to the loss of status and feelings of failure, especially if it lasts for a longer period of time.

European Union. Between the end of the Second World War and the end of the 1960s, European unemployment registered a decline that was maintained until the 1970s when it began to rise progressively. Thus unemployment ends up being felt more and more by the European inhabitants in the last 30 years [1]. The financial crisis of 2007–2008 and the recession had a negative impact on the labour market at the European level, through the massive reduction of jobs, the increase in effective working time, and, consequently, led to an increase in the unemployment rate [2].

Russia. In 2023, the number of people employed in the economy due to involvement of potential labor force and changes in retirement age increased by 2.3 % at one time. However, there was a slowdown to 0.8 % in 2024 while exhausting the stock of resources due to these factors. The labor market in 2023–2024, amid record high employment and low unemployment, was shaped by subdued changes in labor productivity, intensifying supply-demand imbalances and contributing to structural deficits. [3]

Table 1

Source: Rosstat

However, there are differences between these two countries. The main problem in European region was lack of jobs leading to high unemployment or a deficit of demand for labor, which means the high unemployment, while Russian issue was about the lack of workers despite high employment (deficit of supply of labor).

3. Data

Fig. 1

I conducted a survey, where 65 people participated, 4 men and 60 women, or 6.2 % and 93.8 %, about unemployment in society and their opinion on it. The questionnaire includes demographic questions like age, gender, marital status, education, as well as questions personal judgment of every participant.

Fig. 2

The nearly middle is from 16 to 18 years old (55.4 %), teens from 14–16 take the second place (20 % or 13 participants), 9 people for 18–20 part, and 10.8 % people (7) who are more than 20 years old.

Fig. 3

Speaking about marital status, the most selected option is «Not married/Single», which is 61.5 %, while the option «In a relationship» is 36.9 %. And only one person chose «Widower/Widow», which is a 1.5 % of all 100 %.

Fig. 4

Educational part is one of the most diverse. «Incomplete secondary» and «Secondary» are the highest percentage (34.4 % and 23.4 %). Then, «Secondary special» is 20.3 % and «Incomplete higher» is nearly 11 %.

Fig. 5

When asked «Are you currently working?», more people answered «No» (42 individuals), rather than «Yes» (23 individuals).

Fig. 6

When asked about unemployment rate in Russia, two out of three answer options were chosen. Mostly, especially 45 participants or 69.2 % chose that it was «Normal (natural)», and other 30.8 % for a «High» one.

Fig. 7

In your opinion, have unemployment statistics in the Russian Federation increased or decreased in recent years? 49.2 % or 32 people believe unemployment has increased slightly, while 18.5 % say it has significantly increased, and the same numbers of 18.5 % think it decreased a little. 12.3 % or 8 individuals note no changes, and 1.5 % says it significantly decreased.

Fig. 8

Main causes of youth unemployment (multiple answers, max 3).

Low salary is one of the most chosen causes (86.2 %), 67.7 % lack of experience, 44.6 % reluctance to work, 32.3 % high number of migrants., 16.9 % high ambitions, and less than 2 % other minor causes.

Fig. 9

Question for factors contributing to unemployment among young professionals (max 3) received the following replies: 83.1 % employers’ lack of desire to employ, 49.2 % excessive claims by young people, 44.6 % lack of attention from local administration, 24.6 % reluctance of youth to work, and other and high requirements for admission to Higher Education Institutions under 2 %.

Fig. 10

Speaking about any unemployed people in family, 76.9 % (50) answered no, however 23.1 % answered yes.

Fig. 11

Focusing on how the rise in unemployment over the last decade has affected your family, mostly of participants, especially 83.1 %, answered No way (or no effect), while 12.3 % or 8 people more negative than positive, 4.6 % for a negative effect. In conclusion, there are no positive answers.

Fig. 12

What can help solve youth unemployment in Russia? (Max 3).

The most chosen replies are for creating favorable conditions to improve living standards (83.1 % or 54 votes) and ensuring legal, economic, and organizational conditions for jobs (70,8 % or 46). Numbers for 50.8 percent are for forming effective employment structures, and 26.2 % migrant entry restrictions. Creating good working conditions and salary increase are under 10 %.

Fig.13

How could the state support young unemployed professionals? (Max 3). Among state support measures, financial assistance for starting a business (63 %), assignment of graduates by specialties (56.9 %), and development of youth employment exchanges are in demand (50.8 %). In addition, 46.2 % for job creation, 40 % for centers for social and psychological adaptation, and 38.5 % for advanced training courses.

Fig. 14

In participants’ opinion, who is blamed for current unemployment? (Max 2). 66.2 % or 43 demanding employers and 64.6 % or 42 people shortcomings of state apparatus are the most chosen culprits for current unemployment. 30.8 % the respondents themselves, and «few good organizations and the state because many jobs do not hire minors” are under 2 %.

Fig. 15

Speaking about reasons influencing job denial (max 2), 81.5 % respondents mention the lack of practical experience. 56.9 % or 37 lack of education and 50.8 % or 33 votes personal qualities not impressive. In addition, only 4.6 % unfavorable family position.

Fig. 16

There are replies for the question about conditions that guarantee employment. (Max 3).

75.4 % experience is the highest number of conditions, 61.5 % activity and «punch-through» abilities, 53.8 % availability of connections, and 40 % high level of education, 33.8 % personal charm, 24.6 % prestige of graduating from a university, and arrangements through the MLE (Ministry of Labor and Employment) takes the lowest place.

Fig. 17

Interestingly, when choosing a job, people focus mainly on income level or level of offered earnings (89.2 %) and scope of activity (66.2 %), while career growth prospects 61.5 % and gaining practical experience 41.5 %. Goodwill and matching position with personal qualities takes the lowest place, especially 1.5 %.

Fig. 18

Discussing the question «When applying for a job, what do you expect? (No more than 2 answers)». Mostly, participants expect their own abilities (80 %).Then, favorable circumstances, which 49.2 %. Also, there might be assistance from relatives/friends (35.4 %). Help from educational institutions is less chosen than others, especially 30.8 %.

Fig. 19

67.7 % (44) are «Ready, but only with a guarantee of career development», which is the highest choice.

26.2 % or 17 people answered «Yes, I'm ready» to start their career from the bottom, while 4.6 % answered «No, I'm not ready» to start from the bottom. In the end, only 1.5 % (1 person) answered «No, I expect to start my career at the top».

Fig. 20

Shame 40 % (26 people), a chance to start a new life 36.9 % (24 people). However, freedom, homeless people, hopelessness, homeless people and paupers, don’t know, horridness, endless job search, 1.5 % or 1 person.

Overall, the survey shows that youth in Russia recognize the complexity of the unemployment situation, identifying both objective economic causes and subjective factors related to employers and young people themselves. Addressing the problem requires comprehensive measures, including improving work conditions, supporting start-up entrepreneurs, and adapting personnel policies and social support.

4. Possible ways to eliminate unemployment in countries, especially in Russia

1. Improve Education and Vocational Training

Enhancing the quality and relevance of education can help individuals acquire skills demanded by the labor market. In Russia, strengthening vocational schools and technical education programs can reduce skill mismatches.

2. Promote Small and Medium Enterprises (SMEs)

Supporting SMEs through easier access to finance, simplified regulations, and business development services encourages entrepreneurship, creating more jobs and diversifying the economy.

3. Develop Infrastructure and Regional Economies

Investing in infrastructure and supporting economic growth outside major cities can reduce regional disparities in employment, particularly in Russia’s remote areas where unemployment can be higher.

4. Implement Active Labor Market Policies

Programs such as job search assistance, retraining, and unemployment benefits linked with upskilling incentivize workers to find jobs faster and improve their qualifications.

5. Support Emerging Sectors and Innovation

Promoting technology-driven industries and green economy sectors opens new job markets. Russia’s focus on digitalization and innovation could boost employment in these areas.

6. Flexible Labor Market Regulations

Balancing worker protection with flexibility helps businesses adapt in tough economic times without massive layoffs, encouraging hiring when growth returns.

By applying these strategies, especially focusing on education, entrepreneurship, and regional development, Russia and other countries can effectively reduce unemployment levels.

5. Conclusion

Unemployment remains one of the most pressing social and economic issues affecting countries worldwide. It not only impacts the financial stability of individuals but also influences overall societal well-being, economic growth, and social cohesion. The causes of unemployment are diverse and interconnected, including cyclical factors related to economic recessions, structural changes due to technological advancements, frictional unemployment caused by job transitions, and seasonal variations in certain industries. Additionally, social challenges such as insufficient education, lack of skills, discrimination, and regional disparities exacerbate the problem.

To effectively combat unemployment, it is essential to implement comprehensive strategies that address both demand-side and supply-side factors. This includes investing in education and vocational training to equip workers with relevant skills, promoting innovation and entrepreneurship, improving labor market flexibility, and providing social safety nets to support those temporarily unemployed.

Government policies must also focus on stimulating economic growth and creating jobs through infrastructure development and incentives for businesses.

Ultimately, reducing unemployment benefits not just individuals by securing their livelihoods and dignity but also strengthens the economy by increasing productivity and consumption. A sustainable approach requires collaboration between governments, businesses, and educational institutions to create adaptable labor markets that can respond to ongoing economic changes. Only by understanding the multifaceted nature of unemployment and addressing its root causes can societies achieve long-term stability and prosperity.

References:

1. Blanchard, O. (2006) European unemployment: the evolution of facts and ideas, Economic Policy, 21(45), pp. 6–59
2. Marelli, E., Patuelli, R., Signorelli, M. (2012) Regional unemployment in the EU before and after the global crisis, Post-Communist Economies, 24(2), pp. 155–175
3. Izryadnova, Olga, Russia’s labor market: employment, unemployment and shortage of personnel in 2024 (April 15, 2025). Available at SSRN: https://ssrn.com/abstract=5234088 or http://dx.doi.org/10.2139/ssrn.5234088