SKY NEWS

The economic downturn has hit Russia, with unemployment up 20% between the months of November and December.

December saw 6m people out of work, compared with 5m in November, the state employment service revealed, adding it was a much higher figure than the 1.5m of people officially registered as out of work after six months.

The data provided to us by (state statistical agency) Rosstat shows that a number of people who do not have a job or are searching is approximately 6m people," said Russian official Yuri Gertsiy.

Russia, which had enjoyed an average economic growth of 7% in recent years, has seen its fortunes turn around with the collapse of world oil prices, the global credit crunch and the flight of investors from emerging markets.

Until August last year, the Russian economy was seen as "overheated" with its jobless rate at a record low of around 5% - or 4m - in July-August 2008.

The number out of work has risen steadily since.

The economic crisis has hit metals, construction, retail and banking sectors which had enjoyed double digit growth rates in recent years, forcing many companies lay off their staff after a series of boom years based on high world commodities prices.

The unemployment rate, however, is still below many other emerging countries, and analysts say the situation may begin to prompt political unrest only when the number out of work climbs past 10m.

Prime Minister Vladimir Putin's government is acutely aware of the threat of public unrest in Russia if the downturn worsens.