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HomeNewsRussia EXODUS: Economy crisis over 170,000 vital missing workers as wages COLLAPSE

Russia EXODUS: Economy crisis over 170,000 vital missing workers as wages COLLAPSE

This comes after wages in the Russian economy plummeted. Real wages in Russia fell by 6.1 percent in May based on year-on-year figures from the Kyiv School of Economics. The country also recorded the largest fall in real incomes seen in the last seven years.

The last time Russians became this much worse off was in 2015 following the annexation of Crimea, which brought Western sanctions on Russia and a fall in the price of oil.

In March 2022, the Russian Association for Electronic Communications predicted that as many as 170,000 IT workers would leave the country as a result of the war in Ukraine.

The Russian Ministry for Internal Affairs confirmed this figure, saying that the IT industry is short of 170,000 workers as a result of emigration.

Earlier this year, the government waived its compulsory conscription for computer programmers in an attempt to retain as many people as possible in the industry.

Mikhail Mizhinsky, founder of Relocode, a company that helps tech businesses relocate, said that workers in the tech industry are facing a difficult choice, as many international businesses are refusing to work with them if they remain in Russia.

Speaking to CNBC, he explained: “Most of them don’t necessarily want to leave Russia, where their home is.

“But, on the other hand, they have their clients who buy their IT outsourced products and services who demanded them to leave.

“Many got letters from clients who said they would terminate their contracts if they did not leave Russia.”

READ MORE: Russia nightmare: Putin heading for major financial CRASH – forecast

This would mean an increase of 3.8 million people.

The report warned: “According to estimates of the Russian Center for Strategic Research, by the end of 2022 there will be a significant increase in unemployment in 63 percent of regions in Russia, in 16 regions unemployment will increase relative to the average level for Jan-Mar 2022 by 2 or more times, in 53 regions – 1.5 times or more.

“The top 5 industries impacted by the number of expected jobs cut include – transport and logistics, automotive, wholesale and e-commerce, timber industry and wood products.”

The Russian economy has been crippled by wide-ranging packages of sanctions put in place by Western allies.

The UK Government has estimated that up to £275bn worth of Russian assets are currently frozen as a result of UK sanctions – equivalent to 60 percent of Russian foreign currency reserves.

It said that Russia is “heading for the deepest recession since the collapse of the Soviet Union” as a result of the measures.



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