Published: June 7, 2024 2:14 pm
Author: RT
The shrinking population could result in a severe labor shortage by the end of the decade, Dmitry Chernyshenko has warned
A “terrible” demographic crisis is looming over Russia and could result in an acute labor shortage of up to 2.4 million workers by 2030, Deputy Prime Minister Dmitry Chernyshenko has warned.
Speaking on Friday at a business breakfast discussion on the sidelines of the St. Petersburg International Economic Forum (SPIEF), Chernyshenko said the shrinking population and rising pressure on increasingly scarce workers now pose a serious challenge for Russia’s economy.
“We are facing a terrible demographic hole,” the deputy prime minister stated. “I can see it from the impending decline in school graduates and those entering universities – whether we like it or not.”
While calling for the birth rate to be almost doubled, Chernyshenko acknowledged at the same time that this cannot be determined by government decisions alone. He noted that Russian authorities are taking “unprecedented” measures to improve the situation, including financial support for families.
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Just over 1.2 million babies were born in Russia last year, the lowest figure since 1999, official statistics showed. Birth rates have been steadily declining since a peak in 2014. The national statistics bureau, Rosstat, previously predicted a continued decline in birth rates through 2027.
In a recent report, the Labor Ministry cited the demographic gap as the main reason behind the shortage of workers in Russia, adding that each year the labor market is missing thousands of new specialists.
The Labor Ministry expects that by 2030, the need for employees will grow most in areas such as manufacturing, transportation and logistics, health and social care, research and science, and IT.
