Saturday, June 23, 2018

Yekaterinburg unemployment drops to 0.64 percent

Registered unemployment in Yekaterinburg dropped to 0.64 percent on June 1 compared with 1.01 percent on May 1, 2011.

The Sverdlovsk region labor and employment department found that 9,173 people came to the Yekaterinburg Employment Center between December 28 and May 31. The number of unemployed people per vacancy, known as the labor market tension coefficient, was 0.35 people, Ural Business Consulting reports.

General Motors is formulating a plan to expand to Russia that could bring new factories to Yekaterinburg and Magnitogorsk. The expansion plans call for doubling production at GM's plant in St. Petersburg and spending $1 billion to create new factories and expand capacity during the next five years. Yekaterinburg is a possible destination for a new factory, Seeking Alpha reports.

The automaker's plan for expansion could be a risky one because while the Russian economy is doing well now, it is partly the result of high international commodities prices for resources like nickel, copper, gold and oil. If the economy goes south, unemployed Russian workers are unlikely to be able to purchase cars from GM.

Russia may be a good market for certain GM products, such as American-style SUVs, vans and pickup trucks. The SUVs in particular could be popular as a result of Russia's poor roads.