• Mon. Sep 25th, 2023

Russia’s Economy Faces a ‘Massive Brain Drain’ As Young Workers Flee


Jun 5, 2023
Russia’s Economy Faces a ‘Massive Brain Drain’ As Young Workers Flee

Russians depart following getting known as up in Moscow’s troop mobilization final year. Sefa Karacan/Anadolu Agency through Getty Photos

  • Russia’s economy faces a “huge brain drain,” a former central bank adviser told NPR.
  • Additional than 1 million young Russians are believed to have left the workforce final year alone.
  • Numerous firms are scaling back or shutting down due to a lack of workers, Alexandra Prokopenko mentioned.

The Russian economy is not just suffering from a record labor shortage, it is also losing some of its most effective and brightest workers.

Alexandra Prokopenko, a former adviser at Russia’s central bank, told NPR final week that a lot of educated and skilled workers have fled the nation.

As a outcome, Russian firms are scaling back or shutting down, she mentioned, citing a current estimate that 1.three million young workers left the labor force final year alone. 

“I do not believe Russian authorities will admit it, but we’ve observed a huge brain drain,” Prokopenko told NPR.

Other information have pointed to a record labor shortage in Russia as Vladimir Putin’s war on Ukraine delivered a key shock to the workforce. The military mobilized 300,000 troops final year and plans to mobilize hundreds of thousands a lot more this year.  

And about 200,000 Russian troops have been killed or wounded though fighting in Ukraine, with some estimates placing losses at 500 troops a day. Meanwhile, hundreds of thousands a lot more Russians have fled to neighboring nations to stay away from military service and escape financial or political hardship. 

The labor shortage also contributed to a sharp drop final month in Russia’s industrial production, which tumbled five% from the prior month.

As for Prokopenko, she also fled Russia quickly following final year’s invasion and is now a scholar at the Carnegie Russia Eurasia Center in Germany.

“I’d appreciate to go back, but I do not really feel it would be protected for me,” she mentioned on NPR, noting that as extended as Putin is in charge Russians who fled are unlikely to return. “Persons in Russia can come to be prisoners for practically nothing.”

Prokopenko has sounded preceding alarms on Russia’s economy this year, saying in a report in May possibly that Western sanctions will hold Russia’s economy frozen. 

She also warned final month that the Kremlin has shifted its techniques against the West, and now appears to take more than foreign assets inside its borders.

“Russia’s financial confrontation with the west following the Kremlin’s invasion of Ukraine is getting into a harmful new stage,” she wrote in the Economic Occasions.

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