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Russian firms to cut 200,000 jobs by Jan -agency

Published 11/26/2008, 10:09 AM
Updated 11/26/2008, 10:12 AM

MOSCOW, Nov 26 (Reuters) - Russian companies plan to slash up to 200,000 jobs in the next two months due to the economic slowdown, employment agency deputy head Alexei Vovchenko was quoted as saying on Wednesday.

Russia's unemployment count rose to a seven-month high of 4.6 million people in October -- or 6.1 percent of the workforce -- statistical data showed last week. Wage arrears rose to their highest level in a year in October.

Interfax quoted Vovchenko as saying his estimates were based on data from employers who are under an obligation to notify the agency two months before individual sackings and three months before major job cuts.

Russia's previous crisis in 1998 did not lead to a major rise in the jobless rate because employers chose to maintain an official headcount while delaying salary payments. Analysts have said this time the situation will be different.

The Economy Ministry expects unemployment to rise in the financial, construction, retail trade and mineral extraction sectors. The public sector, which employs about one-third of the Russian workforce, will not be affected yet.

Vovchenko warned that some small and medium-sized enterprises may force their workers to sign resignation letters and promised to set up consultation centres across the country to advise workers on their rights. (Writing by Gleb Bryanski; editing by Stephen Nisbet)

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