Russia confronting unprecedented labor shortage, first time since 1996

20 May, 06:03 PM
There is an acute shortage of labor in Russia (Photo:Michael Parulava / Unsplash)

There is an acute shortage of labor in Russia (Photo:Michael Parulava / Unsplash)

Russia is experiencing its worst labor shortage since 1996, with more than a third of Russian industrial enterprises unable to find workers, according to the results of a survey conducted monthly by the Yegor Gaidar Institute for Economic Policy, Politico reported on May 18.

"Russia has recorded its worst labor shortage since President Vladimir Putin first came to power amid Moscow’s invasion of Ukraine," the publication notes.

A poll of about 1,000 industrial enterprises in Russia in April showed that 35% of enterprises lacked workers.

According to the institute, the shortage was partly due to the "partial mobilization" of the Russian population that began in September 2022.

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The shortage of personnel in the country is a "deep and long-term problem" that is holding back industrial growth, concluded Sergey Tsukhlo, head of the institute's business research department.

He said the shortage was most acute in light industry and engineering. And while the departure of Western brands such as McDonald's and Starbucks has opened up opportunities for local entrepreneurs, the lack of workers now means that "there is simply no one to produce in their place,” Tsukhlo said.

Earlier, NV reported that Russia was looking to nationalize the main sectors of the economy.

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