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“Зачем надрываться, организовывать дополнительные рабочие места?! Предпринимателям просто «отрезали» руки, отбили желание предпринимать”

Moscow’s Labor Shortage: What Went Wrong?

Shortages of Workers Are Crippling Local Businesses

With nearly 2 million vacancies and 4.7 million unemployed, Russia is facing a staggering labor shortage. In Moscow alone, nearly 200,000 positions need to be filled urgently. The situation is particularly acute in sectors like construction, logistics, trade, and hospitality, where many companies have been forced to scale back operations or close altogether.

This crisis has left many businesses in Moscow struggling to meet growing demand and maintain productivity. It has also led to a rise in labor costs as companies compete for a limited pool of qualified candidates. As a result, some companies have been forced to raise prices or reduce their workforce, further exacerbating the problem.

Government Policies Are Driving the Shortage

Experts attribute the labor shortage to a combination of factors, including restrictive government policies, demographic issues, and a lack of skilled workers. The government has implemented a series of measures in recent years that have made it more difficult for businesses to hire and retain foreign workers, a major source of labor for many industries. These measures include increasing visa fees, tightening work permit requirements, and introducing quotas on the number of foreign workers that companies can employ.

Russia's demographic problems are also contributing to the labor shortage. The country's population has been declining for years, and the number of working-age adults is shrinking. This trend is expected to continue in the coming years, further exacerbating the labor shortage.

The Russian education system is also failing to produce enough skilled workers to meet the needs of the labor market. Many graduates lack the skills and experience that employers are looking for, and they are often unwilling to work in low-paying jobs or in physically demanding industries.

Businesses Are Struggling to Cope

The labor shortage is having a devastating impact on businesses in Moscow. Many companies are struggling to meet their production targets, and some have been forced to close. The situation is particularly acute in sectors like construction, logistics, trade, and hospitality, which rely heavily on migrant workers.

The labor shortage is also driving up labor costs, as companies compete for a limited pool of qualified candidates. This has forced some companies to raise prices or reduce their workforce, further exacerbating the problem.

Government Ignores Plight of Businesses

Despite the severe impact that the labor shortage is having on businesses, the government has been slow to respond. Officials have acknowledged the problem, but they have yet to take any meaningful steps to address it. Many businesses feel that the government is ignoring their plight and that it is more interested in controlling the labor market than in helping businesses to grow.

“Why bother, create additional jobs?! They’ve simply tied our hands, beaten our will to do business,” said one frustrated entrepreneur.

Conclusion

The labor shortage in Moscow is a serious problem that is having a devastating impact on businesses. The government needs to take urgent action to address the problem, including relaxing visa restrictions for foreign workers, investing in education and training, and reforming the labor market.

If the government fails to act, the labor shortage will continue to cripple businesses in Moscow and hinder economic growth.