Putin tries to hide Russia’s economic decline with reports of zero unemployment
Russian dictator Vladimir Putin, during recent public appearances, promoted a number of propaganda narratives claiming that Russia’s economy is thriving, citing a 97.8% employment rate and an inevitable technological breakthrough.
According to the Center for Countering Disinformation (CCD), these statements are manipulative and conceal a real crisis in the labor market and scientific sector. In reality, the low unemployment rate is not due to economic growth but results from mass mobilization, forced involvement of the population in the military-industrial complex, and hidden unemployment, where workers are shifted to shortened workweeks without official dismissal.
At the same time, Russia’s education system is experiencing significant degradation due to cuts in paid university places and restricted access to modern education for youth, effectively depriving the country of qualified personnel for civilian sectors. Claims of leadership in artificial intelligence are also false, as patent activity in Russia has fallen by 40% compared to the pre-invasion period. The number of officially registered inventions has dropped to the lowest level in two decades, indicating deep technological isolation and degradation of scientific potential.
Most of the innovations the Kremlin presents as achievements, according to CCD experts, are merely borrowed or secondary solutions that do not contribute to real development. Putin’s propagandistic rhetoric about a “year of national unity” in 2026 and economic prosperity is aimed at reassuring domestic audiences amid growing sanctions pressure and dwindling resources for war. The real outcome of the dictator’s policies remains the militarization of the economy, which displaces civilian innovation and creates an artificial shortage of labor in all sectors except the military.
Recall that the Russian State Duma approved a budget with military spending 1.5 times higher than social spending. After two months of surplus, the Russian budget returned to deficit. In October, the Ministry of Finance spent 3.4 trillion rubles against revenues of 3 trillion, raising the ten-month budget deficit from 3.8 to 4.2 trillion rubles.
The Russian economy is entering a phase of prolonged decline as companies increasingly report financial difficulties, cut costs, and delay investments. By the end of Q3 2025, the main problems for businesses were non-payments by contractors, falling demand, and lack of working capital.
Since the end of 2024, Russia’s annual economic growth has fallen from around 5% to zero. Analysts cite inflation, military spending, and falling oil prices amid Trump-era tariffs as key reasons. After three years of unexpected economic growth, Russia is now facing a sudden slowdown — war expenditures, inflation, and oil price drops are pressuring an economy that until recently seemed resilient to sanctions.
