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Social unrest in Russia: Country drowning in wage debts, unemployment breaks records

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The economic crisis is rapidly approaching the Russian Federation. Salary arrears and hidden unemployment rates are rapidly growing at Russian enterprises. This was reported by pro-Kremlin media, citing data from the Federation of Independent Trade Unions of Russia.

According to the organization, in July the debt on payments increased by a quarter and reached 1.7 billion rubles. At the same time, the number of employees at risk of losing their jobs has increased by one and a half times. In addition, the number of jobs transferred to idle mode has increased by a third. Official statistics confirm trends that are alarming for Russians. According to Rosstat, by the end of May, wage arrears had grown 3.4 times compared to last year and amounted to 1.66 billion rubles, excluding small and medium businesses. By July, this amount had risen even higher, reaching 1.7 billion rubles. Rostrud data also show a worsening situation on the labor market. The share of Russians forced to work part-time or part-week increased from 9.1% in June to 14.4% by mid-July. The problems were especially acute in industrial regions — Yaroslavl, Moscow, Samara, Ulyanovsk regions and in Tatarstan. The number of employees on layoff rose from 8.6% in June to 11.1% in July. At the same time, the level of planned layoffs also increased: if in May 16.7% of employees were threatened with layoffs, then in June the figure reached 20.4%. Economists emphasize that the current difficulties are a direct consequence of the protracted war against Ukraine. Russia is bogged down in an aggressive campaign, absorbing resources and directing colossal funds to military needs, while industry and the social sphere are in crisis. The blow to the Russian economy is systemic: rising debt, falling employment and mass downtime at enterprises have become the inevitable result of the Kremlin’s policies. In this case, the population’s anger towards Vladimir Putin’s government is also growing. It is not excluded that there will be social unrest in the country.

Recall, Russia is running out of money and has a record hole in its budget. Against the backdrop of falling incomes, mine closures, industrial losses and the halt in the export of key goods, Russian regions are massively plunging into deficit. In the first half of 2025, the hole in local budgets reached almost 400 billion rubles , and the situation continues to rapidly worsen. According to the Federal Treasury, in January-June 2025, Russian regions had a budget deficit of 397.8 billion rubles. This is a sharp decline compared to the same period last year, when a surplus of 855.8 billion was recorded. Experts call the situation unprecedented: such a deficit in regional budgets has never been recorded before.
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