Russia has reported an unprecedented labor shortage

Russia is currently experiencing the worst labor shortage in the country's modern history, which is already affecting the economy.

This was stated by Elvira Nabiullina, head of the Central Bank of the Russian Federation.

According to her, the situation in the labor market is unique—the country has never before faced such a large-scale shortage of workers, which is affecting all economic processes.

Analysts estimate that the economy’s labor reserve currently stands at about 4.4 million people, which is 40% less than in 2021. The decline is attributed to mass emigration and significant labor losses due to the war.

In particular, hundreds of thousands of citizens have left the country, and millions more have been drafted into the military. In addition to the 300,000 mobilized in 2022, hundreds of thousands of people signed contracts with the Russian Ministry of Defense in subsequent years.

The labor shortage is most acute in industry, where the deficit is estimated at approximately 2 million workers. Significant problems are also reported in law enforcement, the agricultural sector, and major cities, particularly in Moscow.

After three years of unexpected economic growth, Russia is facing a sudden slowdown—war costs, inflation, and falling oil prices have begun to weigh on an economy that until recently seemed resilient to sanctions.

Consumer lending in Russia has fallen to a six-year low.