Page 38 - RusRPTApr23

2.12 Russia's growing labour problem
Unemployment in Russia last year fell to a record low of 3.7%, Prime Minister Mikhail Mishustin proudly told parliament on March 23. Officials love to brag about unemployment stats and the government insists that the labour market is stable – the Economic Development Ministry goes so far as to say “favourable” – despite the war in Ukraine, mobilisation and a mass exodus from Russia, BMB Russia reports.
But the flip side is an unprecedented labour shortage. In the last three months of 2022, there were 2.5 vacancies for every unemployed person in Russia, the highest ratio since 2005, according to calculations by analysts at the FinExpertiza auditing and consultancy network. That trend has continued into this year.
The labour market follows a seasonal pattern with demand for staff increasing in the spring toward a summer peak. Sanctions and the departure of many foreign companies from Russia did not lead to an immediate rise in unemployment. Instead, firms switched staff to part-time and curtailed recruitment programs.
Every second business faced staff shortages last year, according to Central Bank calculations. Half that group was already experiencing difficulties before the war, while a quarter said that the problem was directly connected with a shortage of suitable candidates. The ratio of vacancies per jobseeker increased over the course of 2022 from 2.1 in the first quarter to 2.5 in the last quarter. The biggest staff shortages affected male-dominated industries such as mechanical engineering, metallurgy, construction and transport.
Too few men
According to conservative estimates, two waves of wartime emigration and September’s mobilisation cost the workforce about 600,000 men — 2% of all men aged 20-49 (in total there are 30mn men of this age in Russia, according to economist Vladimir Gimpelson, who specialises in the labour market).
At the same time, 390,000 men moved to posts in military, security and public administration roles, according to calculations by Alexander Isakov of Bloomberg Economics. They have largely moved from construction, processing and retail, Isakov suggested. There have been less obvious changes in employment patterns for women.
A lack of male candidates has forced some companies to hire women in traditionally male roles, such as drivers. In Siberia, some firms are offering temporary contracts to minors aged 16-18 and elderly candidates, the Central Bank reported. A growing number of businesses in some regions are asking staff to recommend new employees, while five factories in Altai region have installed robotic welding systems to compensate for a lack of staff.
There are several reasons for the shortages:
38 RUSSIA Country Report Russia April 2023 www.intellinews.com