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Eastern Europe

Ukraine Incursion Into Russia To Exacerbate Kremlin Labor Shortage In Booming Military Economy

A serviceman of the Russian army against the background of the destroyed Cougar H and Kozak-7 MRAPs of the Ukrainian Armed Forces in the Kursk region, August 19, 2024
Image by Военный Осведомитель

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We have been writing about the tightening labor situation in the Russian Federation due to the booming wartime economy brought on by the Ukraine conflict.

The Ukrainian attack has struck squarely at one of Russia’s economic sore points: the labor market. Right now, Russia’s armed forces, its bloated defense sector, and the civilian economy are all competing for the same workforce. And the need for both soldiers and contractors that the Ukrainian attack has sparked will lead to this competition intensifying, reported Russian independent news outlet The Bell.

Defense Minister Andrei Belousov pledged to call up additional forces and resources to protect people and local infrastructure in Russia’s western border regions at an official meeting on Thursday. However, while it’s not too difficult to find the money for this, human resources are a different story. For almost a year there has been no spare capacity in Russia’s labor market.

We do not know the details of the Kremlin’s plans to strengthen the border. However, we can safely assume that they’ll be looking to find tens of thousands of men.

As well as soldiers, the Kremlin will also need civilian manpower to strengthen the border and build fortifications along the new front line. There are already adverts appearing on Russian job sites for construction workers to dig trenches. They promise wages of up to 210,000 rubles a month ($2,300), which is twice the average Russian salary, and twice as high as the archived adverts offered a year ago for the similar job.  Again, it’s unclear how many people would be needed to properly fortify all of Russia’s borders with Ukraine, but judging by the length of the border  the numbers are likely to run to the tens of thousands.

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