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Significance
In defiance of expectations following the imposition of severe sanctions, the unemployment rate has hovered around 3.2%. Yet rather than a sign of resilience, low unemployment appears to be a symptom of the Russian economy’s entrenched weakness. Staffing shortages are symptomatic of several chronic challenges facing the labour market, that have now become acute with the war in Ukraine.
Impacts
Staffing shortfalls will continue causing production bottlenecks in certain sectors (outside the military industry).
With sanctions restricting access to technology, more medium-to-low skilled workers will be hired, further increasing the demand for labour.
The tight labour market is likely to heighten inflationary pressures in the medium term.
Keywords:
Russia,
RUCIS,
OECD,
Ukraine,
economy,
industry,
international relations,
social,
employment,
growth,
labour,
population,
productivity,
arms,
automobile,
consumer,
corporate,
education,
investment,
sanctions,
technology,
wages,
war
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2023
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