Russia is characterized by rather low level of unemployment and relatively stable level of employment. Such form the labour market adjustment has traditionally been explained by the flexibility of real wages [OECD, 2011]. We consider the transformations in the labour market from a perspective of their impact on the quality of employment and human capital. We make use of the official statistics of the Federal Service for Labour and Employment (Rosstat) and alternative data to perform an analysis of trends in the labour market since the early 2000's, taking into account regional differences. We show positive changes that have occurred during this period and discuss key challenges which affect the quality of employment and human capital.