View from the Ground
Against the background of the relatively stable Russian economy, purchasing power remains at low levels. Employers are primarily promoting employees internally rather than making new hires, focusing on retention by developing loyalty programmes and upskilling employees. It is expected that the legislation to raise the retirement age for both men and women will go some way to alleviating skills shortages and in the short term will ease the pressure on the labour market. However, in order to address the issue in the long term, educational institutions and employers will have to significantly revise training and motivation programmes, aimed at the development of skilled professionals. The labour market could also be affected by employees of foreign companies being at risk from international economic sanctions. IT specialists and sales professionals can expect between two and three job offers at a time, so can confidently look for new roles.
Alexey Shteingardt, Managing Director, Hays Russia
Key Skills in Demand
- Commercial Excellence Managers
- Sales Analytics Specialists
- Data Scientists
- Digital Transformation Managers
- Community Managers
The economy continued its recovery from the 2015-16 recession, growing by 2.6% in 2018. The rate of GDP growth over the next few years is predicted to remain relatively subdued due to the structural bottlenecks, the lingering impact of sanctions, and adverse demographic trends the economy faces.
The economy’s ability to expand is constrained by its ageing population; the working-age population is forecast to decline by an average of 0.9% each year between 2018-2027. Participation rates are already high, leaving limited scope to boost the supply of labour. In 2018, the Government raised the statutory retirement age from 55 and 60 for women and from 60 to 65 for men. This should offset some of the negative demographic trends and have the side effect of easing pressures on the Government’s budget through lowering pension expenditure.