Vladimir Region Ranked 72ND in Russia in Terms of Wage Growth

For the last five years, the labor income of Vladimir residents grew at a rate of 7.9% per year, not including inflation

The Vladimir region is in 72nd place among Russian regions in terms of wage growth. The figures were calculated by RIA Rating on the basis of Rosstat data. According to analysts, in our region over the past five years, salaries have increased at an average rate of 7.9% per year, excluding inflation.

At this rate, the average salary in the region could grow to 100 thousand rubles for 16.3 years. Note that the calculations were based on data up to 2022. Given the acceleration of annual inflation in 2022 to 17%, the period during which the average salary of Vladimir residents will approach the psychological mark of 100 thousand rubles is reduced. However, in today’s context, such a reduction will not necessarily mean an increase in real income.

Rosstat keeps statistics on changes in the real incomes of Russians in the country’s regions. Judging by the official figures, the successes of the previous decade in improving the well-being of the inhabitants of the region seem questionable. A serious negative factor that affected real disposable wages was the 2014 sanctions that followed the reunification with Crimea. In Russia as a whole, the economic recovery was observed from 2017 to 2018, and our region was no exception in this respect.

The years of Vladimir Sipyagin’s governorship were relatively successful for the growth of the citizens’ well-being in the conditions of the national economic situation. But the period of Svetlana Orlova’s governorship was not an easy one. The region-33 reached the maximum drop in the incomes of its citizens in 2015, when the real incomes of people decreased by 8.7%. Then the most affected was a resident of the Vladimir region with an income close to the median.

Due to the developed areas of pharmacological and manufacturing (including food production), our region passed through the pandemic and lockdown period with relatively little loss, and also showed an acceptable rate of economic recovery. In 2020, the income of Vladimir region residents increased on average by 3%. True, this was not enough to maintain the indicators of purchasing power. Because of the uneven inflation, prices for food rose faster than for other goods and services.

Vladimir region was less successful than most of its geographical neighbors in terms of wage dynamics, excluding the Ivanovo region, where the average annual growth rate of wages was 7.6%. In Moscow, Ryazan, Nizhny Novgorod and Yaroslavl regions the growth rate of wages was comparable with the Vladimir indicator, but at the same time the wages there are much higher.

The Yamalo-Nenets Autonomous District (5.3 years to the index), Chukotka (6.3 years) and Moscow (8.3 years) were the closest to the average wage of 100 thousand rubles in Russia. The growth rate of average salaries in our country is highest in the Amur and Kemerovo regions, Altai and Dagestan. The slowest growth of wages in Russia is in the Kaliningrad and Chelyabinsk regions, as well as in Chechnya.

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