Service industry to provide employment in rural Russia and provide sustainability – Republic of Karelia case study

Abstract

The objective of the paper is to analyses the development of the service industry in Russian Federation to understand whether the country crossed the threshold of the postindustrial economy. We see that the development of service industry in Russia not stable and shows decline. At the same time, service industry gives new options to rural people and rural territory to broaden economic diversity and make it less damaged by mining activities. The service sector provides new opportunities for rural people in search of a job. The authors revise the average month wages in different economic sectors in the Republic of Karelia. The first objective is to find out the sectors with the highest wages. But the second and the most important objective was to find average wages in services sectors and weather they can attract people to village. Authors revise main problem preventing the development of service sector, notably, info communicational services and proposes some solutions.