Staff shortage problem deepens in Russia

As the Russian economy tries to adjust to the broadest sanctions in history imposed by Western countries, the job market in Russia is experiencing unprecedented staff shortages due to the war in Ukraine.

While the sanctions negatively affect many industries in Russia, companies are trying to reduce economic losses by turning to alternative markets.

However, the shortage of personnel created by hundreds of thousands of citizens who went to the front lines due to the Ukrainian war or left Russia to mobilize is one of the main problems facing the government and companies.

With Russia struggling to attract skilled workers from foreign countries, companies in particular are unable to achieve significant growth and find it difficult to make new investment.

THE STAFF DEFICIT INCREASES WITH THE MOBILIZATION

According to the investigation of the Central Bank of Russia, the shortage of personnel in Russian companies reached the highest level since 1998, when the survey was carried out for the first time in the first quarter of the year.

In the research, it was noted that staff shortages were felt most in the manufacturing and transportation sectors.

In the research carried out by the Gaydar Institute for Economic Policy, it was highlighted that the personnel deficit reached a record level in October 2022, when a partial mobilization was announced in the country.

According to data released by Russia’s Federal Statistical Institute (Rosstat), the country’s unemployment rate fell to its lowest level ever at 3.1 percent in June.

Russian President Vladimir Putin, in a statement dated August 3, stated that wages have increased in the country and the level of employment is at a good level. he had used the phrase.

Pointing out that the shortage of workers especially affects small and medium-sized enterprises in Russia, Putin said: “I can say that this effect is not good.” he said.

THE DEFENSE INDUSTRY AFFECTS OTHER SECTORS

Vasily Osmakov, Russia’s Deputy Minister of Industry and Trade, stated that the shortage of personnel in the manufacturing sector reached 660,000 people, pointing to “special military operations, mobilization and management of people to work in the defense industry” as the main reasons. of the deficit.

The main name of the Russian defense industry, the president of Rostec, Sergey Chemezov, claimed that there was an increase in the production of military products by more than 50 times in some enterprises of his company, while the production of tanks, missiles, aircraft unmanned vehicles, air defense systems and other missile systems in the country’s defense industry after the start of the Ukrainian war.

While the government significantly increased the hiring of personnel for the defense industry in order to meet the production in question, the Russian press reported that the Russian Ministry of Labor and Social Security plans to “retrain” employees in different sectors. to close the gap. in the defense industry.

On the other hand, it is estimated that approximately 1 million citizens have left the country since the declaration of mobilization, while approximately 120,000 men joined the army by contract in the first 5 months of the year.

While companies in Russia are rapidly raising their wage rates to close the staffing gap, the Central Bank of Russia believes that no rise in inflation will be inevitable due to these increases. (AA)