Russia’s labor market is facing unprecedented challenges in the wake of economic shifts. Despite record-low unemployment rates—just 2.3% nationwide and 1% in Moscow—severe labor shortages continue to plague industries across the country. The fierce competition for talent has led to accelerated wage growth, with the average monthly salary now reaching $1,243.

However, this growth is overshadowed by several critical factors, including skilled professionals leaving the country due to emigration, war-related disruptions, and a declining population. As a result, employers are adapting by reducing hiring and experimenting with four-day work weeks—signals of economic pressure and hidden unemployment.

Despite the rise in real wages, Russia’s long-term economic stability is under threat. The labor market is strained by declining workforce numbers and productivity issues, posing a challenge to sustained growth. Addressing these issues will be key to navigating Russia’s labor market through uncertain times.