The Economy of Russia Declines for the Sixth Month: How It Affects Budgets and Unemployment

The State of the Russian Economy

According to ХВИЛЯ: The economy of Russia continues to experience difficult times, demonstrating a decline in business activity for the sixth consecutive month. In November 2025, the PMI index in the manufacturing sector stood at 48.3 points, indicating a decrease in production. This situation has serious consequences for regional budgets, as tax revenues decrease, which in turn affects the funding of social programs and infrastructure projects.

Instability in the Labor Market

Amidst instability in the labor market, the number of people working part-time or part-week is increasing. In 2025, this figure increased by 2.6 times, and about 14% of employees in large and medium-sized enterprises were in part-time employment at the end of 2024. Meanwhile, over 40% of employers in 2025 planned to reduce staff, indicating further growth in hidden unemployment.

Moreover, in the context of economic difficulties, Russia is actively expanding control over gold deposits in Africa, which may serve as a way to circumvent international sanctions. In September 2025, Russians shot ten local miners near the Ndassima mine in the Central African Republic. Also, in 2025, Nordgold received a license to extract gold at the Niu mine in Burkina Faso, and in the summer of the same year, a gold processing plant with a capacity of 200 tons began construction in Mali.

Since the beginning of 2022, gold exports from Africa to Russia are estimated to be equivalent to $2.5 billion, and gold exports from Armenia rose 17 times in 2024.

These facts indicate serious economic challenges facing Russia, considering the decline in business activity, rising unemployment, and instability in the labor market.

At the same time, expanding control over gold deposits in Africa may be an attempt to improve the economic situation by providing alternative sources of income amid international sanctions. Thus, these processes may have long-lasting consequences for both the internal economy of Russia and for international relations in the field of resource extraction and export.