Six republics of the North Caucasus have ranked among the top ten regions in Russia with the highest unemployment rates.
Ingushetia tops the list, where a quarter of the population (25.5%) is unemployed. On average, it takes locals nearly six months to find a job.
Following Ingushetia are Dagestan (11.5% unemployment), Chechnya (7.5%), and North Ossetia (7.4%). On the sixth spot is Karachay-Cherkessia (5.3%), and on the ninth is Kabardino-Balkaria (4.8%). Among these republics, the longest job search time is in Karachay-Cherkessia—almost nine months. The shortest time is in North Ossetia—about four and a half months.
For decades, the republics of the North Caucasus have been leaders in unemployment rates. Despite having a high proportion of working-age population, there aren't enough job opportunities created locally, forcing the youth to seek better prospects elsewhere.
Unemployment in Chechnya is often discussed at government meetings. In August, Kadyrov promised Putin to reduce the rate by almost half. A year-end report claimed progress, but with the new year, Kadyrov again criticized the residents of Chechnya for their “unwillingness to work.”
The real reasons for the high unemployment rate include the lack of large enterprises, low wages, the reservation of good job vacancies for insiders, and the local authorities’ efforts to monopolize private markets.
The Kremlin is not focused on solving the unemployment issue: economic development in the North Caucasus is not a priority for Moscow. The local authorities also lack incentives to encourage entrepreneurship. Relying on federal subsidies and "dividing" the funds is more convenient. This arrangement benefits the federal center as well, as it buys the loyalty of local elites.
