The Russian economy isn’t just suffering from a record labor shortage, it’s also losing some of its best and brightest workers.
Alexandra Prokopenko, a former adviser at Russia’s central bank, told NPR last week that many educated and skilled workers have fled the country.
As a result, Russian firms are scaling back or shutting down, she said, citing a recent estimate that 1.3 million young workers left the labor force last year alone.
“I don’t think Russian authorities will admit it, but we’ve seen a massive brain drain,” Prokopenko told NPR.
Other data have pointed to a record labor shortage in Russia as Vladimir Putin’s war on Ukraine delivered a major shock to the workforce. The military mobilized 300,000 troops last year and plans to mobilize hundreds of thousands more this year.
And about 200,000 Russian troops have been killed or wounded while fighting in Ukraine, with some estimates putting losses at 500 troops a day. Meanwhile, hundreds of thousands more Russians have fled to neighboring countries to avoid military service and escape economic or political hardship.
The labor shortage also contributed to a sharp drop last month in Russia’s industrial production, which tumbled 5% from the prior month.
As for Prokopenko, she also fled Russia soon after last year’s invasion and is now a scholar at the Carnegie Russia Eurasia Center in Germany.
“I’d love to go back, but I don’t feel it would be safe for me,” she said on NPR, noting that as long as Putin is in charge Russians who fled are unlikely to return. “People in Russia can become prisoners for nothing.”
Prokopenko has sounded previous alarms on Russia’s economy this year, saying in a report in May that Western sanctions will keep Russia’s economy frozen.
She also warned last month that the Kremlin has shifted its tactics against the West, and now looks to take over foreign assets within its borders.
“Russia’s economic confrontation with the west following the Kremlin’s invasion of Ukraine is entering a dangerous new stage,” she wrote in the Financial Times.
Source : MarketInsider
