Russia's Labour Crisis: Economic Growth vs Workforce Depletion

Russia faces a severe labour shortage, exacerbated by military recruitment and emigration, affecting various sectors including construction and IT. The country's low birth rate and high defence sector demand further strain the workforce. Authorities aim to increase productivity while considering AI solutions for future gaps.

Russia is grappling with a significant labour shortage that is impacting multiple economic sectors. This shortage has been intensified by heavy recruitment for the military and emigration, leading to a record-low unemployment rate of 2.3%. As a result, industries such as construction and IT are facing acute staffing challenges.

The Russian government's push to bolster the defence sector has siphoned workers from civilian jobs, causing unemployment figures to skew even amidst economic recovery. There are currently more job vacancies than available workers, as the demand for personnel intensifies in the face of defense sector expansion.

To counteract this labour crisis, Russia is exploring various avenues, including increasing women's participation in the workforce and embracing AI technology as a potential solution to bridge workforce gaps. The country's officials are acknowledging the urgent need to address this challenge to sustain economic growth.

(With inputs from agencies.)