Russia is experiencing a severe shortage of labor, similar to other Western countries, which is expected to worsen. President Putin has identified this as a significant hurdle for economic growth.
According to the Russian Central Bank, 73% of businesses face shortages, while other estimates suggest up to 90%. Unemployment is at a historic low of 2.4%, but hidden unemployment persists.
The demographic challenges are exacerbated by historical events, economic downturns, the COVID-19 pandemic, and the conflict in Ukraine. Additionally, many young Russians wish to leave the country permanently.
The labor shortage affects various sectors, including hospitality, construction, and defense. While foreign workers from Central Asia have traditionally filled these gaps, government measures have been implemented to restrict their influx.
These restrictions intensified after the Ukraine conflict and a terrorist attack in Moscow. Legal migrants also face increased difficulties, making Russia a less attractive destination for work, prompting many to seek opportunities elsewhere.
Source: NOS