Deputy PM: 38 mln Russians Work Illegally

Half of Russia's employable population is engaged in the shadow sector of the economy, according to Deputy Prime Minister Olga Golodets. Eighty-six million people are employed in various economic sectors, of which only 48 million are said to be working in legitimate businesses. "We don’t understand where and how the rest are employed," Golodets told a conference at Moscow’s Higher School of Economics. "Our labor market is practically illegitimate, with only a tiny sector functioning under transparent rules," she added. “With the shadow sector this large, we have lack of funding for all our social costs,” Golodets pointed out, adding that Russia is at least 20 years behind other countries on the international labor market in terms of the level of employment. It’s hoped that the problem could be solved with a new law defining professional standards in Russia. According to the World Bank, Russia’s shadow economy is 3.5 times bigger than in other G8 countries, with ineffectiveness of public administration and tax evasion holding back the country’s economic and political advancements.

http://rt.com/business/labor-market-shadow-economy-270/
http://www.echo.msk.ru/blog/echomsk/1045218-echo/ (video)