Official: Low investment restrains growth of labor productivity

SOCHI, Feb 27 (PRIME) -- A sharp fall in investments and the lack of incentives for technical re-equipment restrain growth of Russia’s labor productivity, Deputy Prime Minister Olga Golodets said on Monday at a Sochi Investment Forum.

“Today, the major hurdle for labor productivity growth is a plunge of investment in the Russian economy and the lack of incentives for businessmen to invest in technical re-equipment, which is spurred by cheap and underpriced cost of the labor force,” she said.

Currently, 4.9 millions of Russians receive a minimum wage, which is lower than the living wage. The increase of the payment for labor to a competitive level will be beneficial for both the economy and people, she said.

The number of vacancies stands at about 1 million, and it has not significantly fallen since 2012, she added.

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