re: Latest Updates: Russia-Ukraine Conflict

Russia's oil and gas industry faces severe labor shortage amid war efforts
May 6, 2024, 10:26 AM

Russia's oil and gas industry is grappling with a severe labor shortage as the nation's economy shifts to a war footing, according to a report by Bloomberg on May 6.

The shortage has been exacerbated by a deepening demographic crisis and stiff competition for workers from the military and defense sectors. Kasatkin Consulting, formerly part of Deloitte, estimates that the industry will face a shortfall of about 40,000 workers in 2024. This gap includes both highly skilled professionals and low-skilled labor, as indicated by the job search portal hh.ru.

The labor market issues are compounded by a significant brain drain, with up to 1.3 million people, including many young and skilled workers, leaving Russia in 2022. The country's Ministry of Communications reported that approximately 100,000 IT professionals, or about 10% of the total in that sector, left Russia in 2022 and have not returned.

Further highlighting the labor crisis, a May 2023 survey by the Russian Central Bank, which included responses from 14,000 employers, found that the availability of workers was at its lowest point since 1998. Additionally, British intelligence stated on May 7, 2023, that Russia is experiencing its most significant labor shortage in a decade, complicating efforts to maintain key industries during ongoing military activities.

The New Voice of Ukraine