The UK Ministry of Defense has released a statement claiming that Russia is facing a severe labor shortage, the largest it has seen in decades.
A survey conducted by the Central Bank of Russia indicates that the number of job vacancies has reached its lowest point since 1998. The decline in the population of Russia has been accelerated over the past three years due to the impacts of COVID-19 and the war with Ukraine, resulting in a 2mn decrease in population beyond the expected decline.
In 2022 alone, up to 1.3mn people, including young and well-educated individuals working in important industries left Russia. The Ministry of Communications of Russia also reported that around 100,000 IT professionals (equivalent to 10% of IT workers) left the country in 2022 and did not return.
The report suggests that factors such as mobilization, high emigration rates, an aging population, and a shrinking workforce will significantly reduce Russia's labor force. As a result, the potential growth of the Russian economy is expected to be affected, and there is also a risk of inflation.
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