Employment and development levels in rural areas of the Russian Federation

Abstract

The development of agro-industrial complex is important for ensuring national food security and national health. The development of rural areas is subject to the development of agriculture and local infrastructure, as well as the availability of various services. This study selected 15 indicators in 2021 to analyze the employment and development levels in rural areas of 71 regions of the Russian Federation using the analytical grouping method. The results indicated that 20 regions (Group 1) had the highest percentage of rural population (33.10%). The percentage of population engaged in agriculture had the highest value (12.40%) in 31 regions (Group 2). Moreover, 20 regions (Group 3) had the highest investments in fixed assets at the expense of municipal budget (11.80 USD/person). Increasing the investments in fixed assets carried out from the budget of the municipality can improve the employment level in rural areas. Then, we used cluster analysis to divide 14 regions of the Volga Federal District in the Russian Federation into 3 clusters. Cluster 1 covered Kirov Region and Republic of Mari El; Cluster 2 included Ulyanovsk Region, Saratov Region, Nizhny Novgorod Region, Perm Territory, Orenburg Region, Chuvash Region, and Republic of Mordovia; and Cluster 3 contained Republic of Tatarstan, Samara Region, Udmurtian Republic, Penza Region, and Republic of Bashkortostan. Results indicated that the 2 regions of Cluster 1 need to increase the availability of resources and natural gas and improve the investment attractiveness of rural areas. The 7 regions of Cluster 2 needed to develop infrastructure, public services, and agricultural production. We found the highest employment level in rural areas, the largest investments in fixed assets at the expense of municipal budget, the largest residential building area per 10,000 persons, and the largest individual residential building area in the 5 regions of Cluster 3. This study makes it possible to draw up a comprehensive regional development program and proves the need for the development of rural areas, which is especially important for the sustainable development of the Russian Federation.