Russia Faces Worsening Labor Shortage Crisis

A growing labour shortage in Russia is impacting daily life since the invasion of Ukraine in February 2022, as reported by residents like Olga Slatina from Sverdlovsk. The armed forces' recruitment and emigration have pulled workers from civilian jobs, resulting in a record low unemployment rate of 2.3%. Despite initial predictions of economic collapse, Russia experienced only a minor contraction in 2022 and a rebound in 2023; however, issues like high inflation and interest rates at 21% remain concerning. President Putin has acknowledged the labour shortage as a significant problem, aiming to boost productivity and encourage higher birth rates among women. In Sverdlovsk, there were 54,912 job vacancies compared to just 8,762 unemployed individuals at the start of October, reflecting a broader national trend of 73% of businesses citing staffing shortages. The phenomenon has been described as a 'personnel famine', with vacancies increasing significantly across various sectors over the past two years.