Russian Factories Exceed Quota with Surge in Foreign Worker Hiring Amid Labor Crisis in 2024

In 2024, Russian factories brought on board 47,000 foreign workers in an effort to address the growing labor shortages in the industrial sector, as reported by the Vedomosti business daily, citing statistics from the Labor Ministry.

The figures revealed that the influx of foreign labor exceeded the government-imposed limit of 40,500 workers by 16%.

Most of these foreign employees hailed from countries such as China, India, Turkey, Serbia, and others whose citizens require visas to enter Russia, according to a representative from the ministry speaking to Vedomosti.

This information emerges amid Russia’s struggle with a diminishing domestic workforce, a situation exacerbated by declining demographics and the outflow of skilled workers following the invasion of Ukraine and subsequent Western sanctions.

A representative from the ministry indicated to Vedomosti that hiring international labor has become “objectively necessary” in cases where suitable candidates are not available within Russia.

There is particularly strong demand for foreign workers in fields such as welding, concrete work, finishing, as well as in food and agriculture, as noted by Dmitry Lapshinov, managing director of the recruitment agency Intrud.

Researcher Viktor Lyashok highlighted that labor shortages in construction, manufacturing, and technology sectors are connected to the ongoing conflict in Ukraine and the policies surrounding import substitution.

Another researcher, Dmitry Zemlyansky, pointed out that the highest demand for foreign labor exists in sectors where local workers have shifted to the defense industry.

“Construction is facing the most severe shortages, partly due to a decrease in migrants from countries without visa requirements,” Zemlyansky explained. “In recent years, new mining initiatives, particularly in the Far East, have increasingly depended on foreign labor in areas with longstanding labor scarcities.”