Against the backdrop of large-scale militarisation of the Russian economy and a chronic shortage of skilled workers in industry, the country is recording massive layoffs in the civilian sector. This was reported by the Foreign Intelligence Service of Ukraine (SZRU.
The intelligence report noted that despite the record low official unemployment rate, the Russian labour market has plunged into a deep structural crisis. The paradox is that with nearly 2 million vacancies in the manufacturing industry, Russia is massively laying off workers in housing and utilities (-40%), culture and sports (-9%), real estate (-8%), and even public administration (-7%).
The reasons for this are funding cuts, digitalisation, the abolition of benefits, and tough migration restrictions that have deprived the market of some of its workforce.
Instead, the growth of defence orders artificially stimulates the development of machine building, construction and manufacturing, which further depletes other sectors.
The situation is complicated by sanctions: Russia is reverting to outdated technologies, and the IT sector, although in need of personnel, is cutting staff by up to 20%.
The SZRU emphasises that the problem has only worsened since the invasion of Ukraine: mobilisation, emigration, the demographic crisis and rising salaries in the military sector have led to a shortage of qualified personnel in most sectors.
“In the long term, the Russian labour market is degrading: the return of specialists is unlikely, and the focus is not on modernisation but on the military economy,” the SVRU stressed.