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Unemployment on the rise in Northern Fleet home base

In the Northern Fleet base town Severomorsk unemployment has increased 30 percent compared to the first quarter of 2008. 700 Northern Fleet employees have been fired, and the number is expected to rise.

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The Russian Navy’s cutbacks have had deeper implications on Severomorsk than the financial crisis, says Head of Department for Economical Development in Severomorsk Svetlana Pechnikova, according to web site Promurman.ru. 700 persons have been fired lately and the number of job openings has decreased with 40 percent.

As BarentsObserver earlier reported, there has been no official information on how large the cutbacks in the Northern Fleet will be, but different sources say that 4000 employees will be dismissed as part of the ongoing military reforms in Russia. Both the town’s mayor and the Military Servicemen’s Trade union fear the possible consequences of the planned reductions Northern Fleet personnel.