Companies have to increase wages
There is a shortage of millions of workers in Russia
December 24, 2023, 12:15 p.m
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Many Russians have turned their backs on their country and emigrated. Often because they are afraid of being drafted as cannon fodder for the Kremlin army. This is a big problem for the domestic labor market, as a study now reveals.
There was a shortage of around 4.8 million workers in Russia this year. An acute labor shortage is also expected next year, the newspaper “Izvestia” reported, citing experts and the Institute of Economics of the Russian Academy of Sciences. The labor shortage increased sharply in 2022 and 2023, the paper quoted the author of the study, Nikolai Achapkin. Drivers and shop workers are particularly in demand.
According to data cited by “Izvestia”, the number of vacancies in relation to the total number of workers increased to 6.8 percent by mid-2023 compared to 5.8 percent last year. According to Labor Minister Anton Kotyakov, there is a shortage of workers, particularly in the manufacturing, construction and transport sectors. Companies are forced to increase wages in order to attract more employees.
According to the paper, expert Tatyana Zakharova from the University of Economics assumes that the labor shortage will likely continue next year, as vacancies for factory workers, engineers, doctors, teachers and other professions will be particularly difficult to fill.
Economic growth threatened
She cited, among other things, population development and emigration as reasons for the labor shortage. Central Bank Governor Elvira Nabiullina warned last month that labor shortages were threatening economic growth.
Hundreds of thousands of Russians, including highly qualified IT specialists, left their country after the attack on Ukraine in February 2022. Many fled because they rejected the war or feared being drafted. The exodus increased after President Vladimir Putin announced a partial mobilization of around 300,000 recruits in September 2022.