The Russian economy is struggling with a variety of problems. One of them is the shortage of skilled workers. Vladimir Putin is looking for ways to stimulate the economy.
Moscow - The Russian economy faces a number of challenges, including inflation, high war costs and the threat of overheating. Instead of finding solutions, President Vladimir Putin appears to be driving the economy further into the abyss. The independent Russian demographer Alexei Rakscha said in an interview with the
Berliner Zeitung
: “They are sawing on the branch on which they are sitting.” He was referring to the fact that trying to combat the shortage of skilled workers may do more harm than good to the Russian economy.
Russia needs immigration - but is increasingly positioning itself against it
The Russian economy relies on immigration due to economic and demographic factors. However, after the terrorist attack in Moscow on March 22, which investigators say was carried out by four Tajiks, Russia appears to want to rethink its migration policy. The
Frankfurter Allgemeine Zeitung
reported that Russia was deporting migrants in large numbers. In addition, security forces in other cities began checking people with “eastern appearance” shortly after the attack.
Human rights lawyer Valentina Chupik told the independent Russian media outlet Mediazona that she had received over 8,500 inquiries from foreigners in Russia since the attack. Almost three quarters of these requests related to illegal arrests. Many migrants are being arbitrarily deported, she added.
Skilled labor shortages in Russia are getting worse
However, Raksha emphasized that Russia cannot do without these “migrant workers” for economic reasons. He doubted the Russian President's statements that ten million migrant workers live in Russia. Most of these migrants come from Central Asia and are looking for work in Russia, hoping for better job opportunities than in their home countries.
Since the start of the war in Ukraine, the shortage of skilled workers in Russia has worsened. According to the Russian newspaper
Izvestia,
the Russian economy was estimated to be short of 4.8 million workers in 2023. Drivers and shop workers are particularly in demand. Labor Minister Anton Kotyakov confirmed that the labor shortage was also felt strongly in manufacturing, construction and transport.
Lack of innovation caused by sanctions is now taking its toll
Sanctions limit Putin's ability to solve problems in the Russian labor market and stabilize the economy. He could try to increase labor productivity in Russia, but this would require technological advances. Rakscha told the
Berliner Zeitung
: “In high-tech Germany, an asphalt path in a park is laid by one worker and a lot of machines. In Russia, ten Tajiks with shovels and a Russian foreman do this.” Sanctions would currently prevent this progress.
Putin's strategy of wanting to increase labor productivity while sending young people to the front doesn't seem to be working either. Russian Defense Minister Sergei Shoigu announced unconfirmed figures that there are 25 million reservists in Russia. The aim is to expand the army from 1.15 million to 1.5 million soldiers by 2026. However, the ISW war experts expressed doubts: “It is unclear whether the Russian military will be able to grow within three years as Shoigu described,” especially given the shortage of skilled workers.