Reversal on Migrant Labor Ban Sparks Economic and Political Tensions

The governor of Vologda has reversed a ban on migrant workers in construction due to pressure from steel giant Severstal. The ban had highlighted labor shortages, with unemployment at 2.4% as military recruitment drains the workforce. Migrant labor, crucial to the economy, faces increasing hostility.

The Vologda region governor has lifted a contentious ban on migrant workers in construction, responding to backlash from the steel industry powerhouse Severstal. The decree, initially aimed at prioritizing local employment, was retracted after highlighting severe labor shortages in the region.

Severstal, a significant regional employer, criticized the ban, revealing tensions between political agendas and business needs as Russia battles a labor shortage crisis. With unemployment at a low 2.4%, largely due to military recruitment, businesses are struggling to fill positions.

Migrant labor from Central Asia, vital for Russia's economic stability, faces mounting challenges amid growing domestic hostility following last year's deadly attack in Moscow. Severstal aims to fill over 2,000 positions by 2027, emphasizing the critical need for migrant workers to meet its expansion goals.

(With inputs from agencies.)