Russia's falling population cannot meet labour needs

Significance

Demographic decline now appears inevitable, leading to a smaller, less productive working-age population. In addition to short-term disruptions caused by pandemic-related restrictions, lasting structural changes in the labour market are becoming evident, prompted by shifts in consumption patterns, rising demand for higher-skilled labour and greater remote working.

Impacts

• Higher long-term unemployment will increase the need for social transfers, putting a further strain on federal funds.
• The ageing labour force will need retraining to shore up productivity levels.
• Greater remote working will increase the digital gap between higher- and lower-paid workers.