Labour shortages across sectors due to migration, military mobilisation, and demographic challenges.
MOSCOW: Russia is grappling with a shortage of approximately 4.8 million workers in 2023, and experts predict that this issue will remain severe into 2024, according to a report by the Izvestia newspaper published on Sunday (Dec 24). The data, sourced from the Russian Academy of Science’s Institute of Economics, highlights the growing labour crisis in the country.
Central Bank Governor Elvira Nabiullina acknowledged last month that Russia’s shrinking workforce is causing critical labour shortages, which are stalling economic growth. This is compounded by the heavy fiscal and military investments Moscow has been making, particularly due to the ongoing conflict in Ukraine. Since the military operation began in February 2022, a large number of skilled workers, particularly in IT, have fled Russia. Many of these individuals left because of opposition to the war or the fear of conscription.
The exodus of workers intensified following President Vladimir Putin’s announcement of a partial military mobilisation in September 2022, calling up approximately 300,000 recruits. However, Putin recently stated that there is no immediate need for further mobilisation.
Research cited by Izvestia, including insights from expert Nikolai Akhapkin, indicates that the labour shortage in Russia became significantly worse in 2022 and 2023. The most pressing demand is for drivers and retail workers, but shortages are being felt across various sectors.
Official data reveals that the number of job vacancies in Russia’s workforce increased to 6.8% by mid-2023, compared to 5.8% the previous year. Extending the findings from Rosstat, Russia’s official statistics agency, experts estimate that the total number of unfilled positions in 2023 stands at approximately 4.8 million.
The shortage is particularly severe in sectors such as manufacturing, construction, and transportation, leading companies to raise wages in an effort to attract workers. Tatyana Zakharova, an economist at Russia’s University of Economics, explained that the labour crisis would likely persist in 2024. Professions like factory work, engineering, healthcare, and teaching are expected to experience the most significant difficulties in finding qualified candidates.
Zakharova attributed the continuing shortages to poor demographic trends and the ongoing migration out of Russia, which have created long-term challenges for the country’s labour market.
