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| | Beyond skilled professionals, Russia struggles to meet even basic labor demands, including those for military purposes. Increasingly, schoolchildren and students are being enlisted for war-related tasks. Just last week, a major investigation revealed how minors as young as 14 are involved in activities for the “Mayor’s Labor Unit” in Krasnoyarsk, weaving camouflage nets and preparing parcels for frontline needs.<ref>[https://cepa.org/article/russia-seeks-africans-to-fix-its-workforce-shortages/ Russia Seeks Africans to Fix its Workforce Shortages], Center for European Policy Analysis, March 9, 2024</ref>}} | | Beyond skilled professionals, Russia struggles to meet even basic labor demands, including those for military purposes. Increasingly, schoolchildren and students are being enlisted for war-related tasks. Just last week, a major investigation revealed how minors as young as 14 are involved in activities for the “Mayor’s Labor Unit” in Krasnoyarsk, weaving camouflage nets and preparing parcels for frontline needs.<ref>[https://cepa.org/article/russia-seeks-africans-to-fix-its-workforce-shortages/ Russia Seeks Africans to Fix its Workforce Shortages], Center for European Policy Analysis, March 9, 2024</ref>}} |
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| | + | === Russia's labor productivity problem === |
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| | + | ''See also:'' [[Russia's labor productivity]] |
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| | + | On February 7, 2024, Reuters reported: |
| | + | {{Cquote|According to Rosstat, Russia's labour productivity index, one of Putin's key national development goals, fell 3.6% year-on-year in 2022, its steepest annual fall since the aftermath of the global financial crisis in 2009. |
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| | + | Labour Minister Anton Kotyakov has said Russia needs to increase labour productivity in order to become more technologically self-sufficient. |
| | + | Labour productivity data for 2023 will not be published until late-2024, but the authorities' warnings about manpower shortages suggest there was no rebound in that figure last year.<ref>[https://www.reuters.com/world/europe/russias-gdp-boost-military-spending-belies-wider-economic-woes-2024-02-07/ Russia's GDP boost from military spending belies wider economic woes], Reuters, February 7, 2024</ref>}} |
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| | + | The RBC Group, a Russian media group headquartered in Moscow, reported on December 4, 2023 in their article ''Experts estimate the level of Russian GDP losses due to personnel shortages'': |
| | + | {{Cquote|According to experts, in order to eliminate the deficit, it will be necessary to achieve labor productivity growth of at least 2.4% per year - this is twice as fast as the historical level (the average rate over the last ten years is 1.2%) and higher than the forecast (for 2023-2026 it does not exceed 2%). Over the period since 2018, the maximum increase in productivity was observed in 2021 (3.7%), last year it fell by 3.6%. |
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| | + | “The growing need for qualified personnel is most noticeable in the regions, especially if you pay attention to the increase in the proposed salary. It is worth noting that in the regions the proposed salary for qualified personnel is growing faster than in Moscow,” noted Vladimir Dzhuma, director of the Center for Digital Transformation and Data Analysis of the All-Russian Research Institute of Labor.<ref>[https://www.rbc.ru/economics/04/12/2023/656c83409a79471d72124f2d Experts estimate the level of Russian GDP losses due to personnel shortages], RBC Group (Translated from Russian to English)</ref>}} |
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| | + | [[File:Russia's labor productivity rate March 1996 to September 2023.png|thumbnail|1250px|center|Russia's Labour Productivity Growth from March 1996 to September 2023 (Source: CEICADATA.com)<ref>[https://www.ceicdata.com/en/indicator/russia/labour-productivity-growth#:~:text=in%20Sep%202023%3F-,Russia%20Labour%20Productivity%20improved%20by%202.89%20%25%20YoY%20in%20Sep%202023,table%20below%20for%20more%20data.Russia Labour Productivity Growth],Source: CEICADATA.com</ref>]] |
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| | == Russia's business environment == | | == Russia's business environment == |