Russia is starting to see a labor shortage in many sectors as Putin has decided to call hundreds of thousands of people into war effort. Last year alone saw an increase of 400,000 service members and that happened on top of an already high unemployment rate. The Kremlin has already requested another 400,000 recruits to raise their military from 1.15 million people to 1.5 million.
Russia is also seeing that many draft age citizens are fleeing the country in order to avoid the war. Predictions are saying that the working-age population may see a 6.5 percent decrease in the next decade. While the Russian military may be gaining strength their overall economy outside it is weakening tremendously.
I do not think Putin is overly concerned with the economy but this decision seems to be driving people out of the country at a rapid rate and accelerating the decline of Russia as a whole. The economic impact on the entire world will also be immense if a war does end up breaking out.
ReplyDeleteI wonder what the economic impact of this labor shortage will be on Russia in the long run. We know that Putin has finally admitted that sanctions will negatively impact the Russian economy, but do you think that Russia's economy has been really increasing since last July like he recently stated?
ReplyDeleteIt will be interesting to see that post war if people eligible for the labor force will move back into Russia or stay wherever they are displaced.
ReplyDelete