Russian companies ended 2024 short of 2.6 million employees, a record high, the pro-state publication Izvestia reported on May 12, citing an analysis by Russia's Higher School of Economics.
The deepening labor shortage reflects growing strain on Russia's workforce as the Kremlin aggressively recruits men for its war against Ukraine.
The shortages are sharpest in manufacturing (391,000), trade (347,000), and transportation (219,000). Employers in these sectors now offer salaries exceeding 100,000 rubles ($1,200) monthly — 1.5 times higher than Russia's national average.
The average monthly gross salary in Russia rose 20% to 88,000 rubles (around $1,000) in 2024, marking the fastest annual wage growth on record against official inflation of 9.5%. Workforce participation also hit a historic high, with 61% of Russians over 15 engaged in the labor market.
Inflation in the country reached its highest level in 2024, driven by war spending and rising food prices. To curb inflation, Russia's Central Bank raised its interest rate from 7.5% in July 2023 to the current 21%.
Researchers linked the rise in vacancies to a collapse in labor migration, a weakening ruble, and multiple economic shocks. Engineers, scientists, teachers, and doctors were the most in-demand skilled workers.
The shortage has sharply worsened since Russia's full-scale invasion of Ukraine in February 2022. To bolster its military ranks, the Kremlin has relied on lucrative contracts and aggressive recruitment campaigns rather than formal conscription.
President Volodymyr Zelensky said on Jan. 15 that 600,000 Russian troops are deployed in Ukraine. Russia plans to increase its forces there by 150,000 in 2025, according to Ukrainian President's Office Deputy Head Pavlo Palisa.
The General Staff of Ukraine's Armed Forces reported on May 12 that Russia has lost 967,060 troops in Ukraine since the start of its full-scale invasion.
Chris York,
(Updated: )
