New employment opportunities may emerge in Russian as a result of growing activity in the manufacturing sector.

According to the latest figures from HSBC and Markit, the industry expanded at its fastest pace in almost five years during March 2011.

Strong levels of domestic demand for Russian products pushed the purchasing managers' index (PMI) for the sector up, building on a "positive start to 2011".

The PMI stood at 55.6 during the month, its highest level since August 2006, with sharp increases in output and new orders over the period in question.

However, rising raw materials costs are placing pressure on manufacturers and have pushed up output prices.

Commenting on the report, HSBC chief economist for Russia and CIS Alexander Morozov said: "The PMI report draws a benign picture of fast-growing manufacturing that can hardly catch up with the rising demand, increasing employment and reducing inventories."

Last month, the Kremlin press service reported that Russian president Dmitry Medvedev approved a series of instructions drawn up in a meeting about state employment policy, including measures to provide assistance to jobless individuals setting up their own enterprises.

Posted by Lee Thrace