© Reuters. FILE PHOTO: Communal workers sweep fallen leaves in a park in Moscow, Russia October 23, 2023. REUTERS/Maxim Shemetov
It’s no surprise that Russia is facing a serious shortage of workers, with around 4.8 million positions unfilled in 2023. The Izvestia newspaper reported that this problem is only going to get worse in 2024, according to experts and research from the Russian Academy of Science’s Institute of Economics.
Last month, Central Bank Governor Elvira Nabiullina expressed concern about Russia’s shrinking workforce, warning that it was creating severe labor shortages and jeopardizing economic growth. The situation has been exacerbated by the exodus of hundreds of thousands of Russians, including highly-skilled IT professionals, who left the country following the conflict in Ukraine and the subsequent military mobilization announced by President Vladimir Putin in September 2022.
According to the research cited by Izvestia, the labor shortages in 2022 and 2023 have hit particularly hard, with a significant increase in demand for drivers and shop workers. Official data shows that the number of vacancies has risen to 6.8% of the total workforce by mid-2023, up from 5.8% the previous year. This translates to an estimated 4.8 million worker shortage.
Labor Minister Anton Kotyakov has acknowledged the impact of these shortages on the manufacturing, construction, and transportation sectors, prompting companies to raise wages in an attempt to attract more workers. Tatyana Zakharova of Russia’s University of Economics believes that these labor shortages will persist next year, especially in professions such as factory workers, engineers, doctors, and teachers.
With poor demographics and population migration being identified as contributing factors, the future looks challenging for finding a solution to fill these labor shortages.
