Construction Crisis: Russia's Workforce Shortage Shakes Industry
Cities With Significant Scarcity of Construction Workers Include Ekaterinburg
The Russian construction sector is reeling from a major labor crunch, with a staggering deficit of more than 160,000 workers nationwide. cities like Moscow, St. Petersburg, and Yekaterinburg experience the brunt of this labor scarcity, struggling to fill positions across the spectrum, from electricians to laborers.
This dearth of manpower is no mere ripples, but a tidal wave hitting major urban hubs. Moscow, for instance, is grappling with a downturn in construction projects and an insatiable demand for workers. St. Petersburg, while not quite as prominently featured in recent reports, also battles the labor crunch. As for Yekaterinburg, while detailed data may be scarce, the larger Russian trend suggests a prominent shortage in skilled labor in major cities.
Maxim Pritchin, founder of City Manage, a repair-construction firm, pinpoints the labor shortage as one of the industry's most pressing problems. With wages competing against other high-paying, daily-wage jobs, construction companies are scrambling to adapt, offering better wages and flexible work conditions to attract local workers. On average, a construction worker earns around 125,000 rubles a month, a figure that significantly impacts project costs.
Recruiters note that the construction sector's demand for workers, while still high, is gradually tapering off, in line with a broader slowdown in hiring across all sectors. In the Ural region, there's a high demand for blue-collar jobs, teachers, and cooks, suggesting a broader labor crunch.
Experts from the Association of Recruitment Agencies (ARA) offer insights into how companies cope with the labor shortage. Russia's construction industry is grappling with several challenges, including a high skilled labor deficit, economic factors, and the impact of sanctions. Potential solutions include increasing the migrant workforce, implementing vocational training programs, offering better wages and conditions, policy reforms, and incentives for local hiring.
(References | Email Newsletter Subscription | Telegram | VK)
I'm not sure if the average monthly wage of around 125,000 rubles for construction workers is particularly competitive in terms of the finance industry, given that other high-paying, daily-wage jobs exist.
The shortage of skilled labor in major cities like Novosibirsk may not be as apparent due to limited data, but the larger Russian trend suggests that it could still be a concern.
The construction industry, particularly in cities like Moscow and St. Petersburg, is concluding that offering better wages and flexible work conditions is necessary to attract local workers, as the labor crunch continues.
Recruiters note that a tapering off of demand for workers in Russia's construction industry is gradually occurring, in line with a broader slowdown in hiring across all sectors, which includes a high demand for blue-collar jobs, teachers, and cooks in the Ural region.
