Moscow: Russia is expanding its efforts to recruit foreign workers as the country grapples with a severe labour shortage driven by demographic decline and the ongoing conflict in Ukraine.
The Russian government estimates that an additional 11 million workers will be needed by the end of the decade to sustain the nation’s economy. In recent months, foreign labourers from India and other South Asian countries have increasingly taken on municipal roles such as snow removal in major cities, alongside growing presence at construction sites, restaurants, and urban service sectors.
Factors Behind the Labour Shortage
Russia faces a persistent demographic crisis, with its population aging rapidly since a sharp decline in birth rates following the economic collapse of the 1990s. Currently, approximately 25% of Russians are of retirement age. Despite unemployment remaining near a record low of around 2%, businesses are struggling to find enough workers, raising concerns that labour shortages could hinder economic growth.
Unlike many Western countries, which have tightened immigration policies, Russia is seeking to attract more foreign workers, especially those tied to specific jobs through visas and contracts. Workers from visa-free Central Asian countries, however, tend to switch employers more frequently, complicating labour management.
Impact of the Ukraine War
The ongoing conflict in Ukraine has further worsened the labour crisis. In addition to soldiers mobilized for combat, the expanding defence sector has drawn workers away from civilian industries. Meanwhile, an estimated 500,000 to 800,000 working-age Russians have left the country since the invasion, citing opposition to the war, fears of mobilization, or other reasons.
Major Russian companies are feeling the strain. For instance, MMC Norilsk Nickel, the nation’s largest mining firm and a top-paying employer, was short of about 10,000 employees—roughly 10% of its Siberian workforce—in 2023. Similarly, the JSC Shipbuilding Corporation Ak Bars reported shortages of 1,500 to 2,000 workers, with operations operating at about half capacity due to the labour gap.
Deepening Ties with North Korea
Russia is also looking to strengthen labour cooperation with North Korea. Since 2022, arrivals from North Korea have increased, reversing a decline following a 2017 UN ban on employing North Korean citizens abroad. Many North Koreans enter Russia on student visas, with about 9,000 arriving in 2024, according to the Foreign Ministry. Additionally, Eskadra, a Russian developer group, predicts that the number of North Korean workers on construction sites could reach 50,000 by the end of 2025.
Looking Ahead
As the conflict persists and demographic pressures mount, Russia’s widening search for foreign labour highlights the magnitude of its economic challenges. Analysts warn that without a significant influx of workers, the country may face hard limits on growth in the coming years.