If we look deeper, we will notice that low unemployment figures disguise ineffective functioning of the labor market. First, there is low adjustment of employment regarding the fluctuation of production levels. Small business, presumably more vibrant, still occupies a modest place in the Russian economy, providing in 2006 jobs to 12,8% of all employees. In large enterprises, complicated legal procedures of mass lay-offs coupled with low salary levels encourage to keep an excessive labor force even when there are no chances to occupy it in the future.