Putin's drive to expand Armed Forces intensifying labour shortages in Russia's economy

New Delhi: As his conflict in Ukraine attracts hundreds of thousands of people into the military from other areas of the economy, President Vladimir Putin’s push to increase Russia’s armed forces is contributing to a labour crisis.

According to a Bloomberg report, Federal Statistics Service data suggest a net increase in the military last year of approximately 400,000 amid already record-low unemployment, after Putin ordered the call-up of 300,000 reservists in the country’s first partial mobilisation since World War II.

Bloomberg estimates that the overall number put into service likely approached 500,000. This is due to the fact that the data omit fresh recruiting to cover gaps left by troops who have been released since the invasion’s beginning and do not take into account recruitment by private military groups like the infamous Wagner mercenary outfit. Citing people familiar with the plan, the report suggested that Kremlin is now seeking 400,000 more contract recruits this year to fight in Ukraine as Putin digs in for a long fight. Putin has approved a goal to increase the size of Russia’s military to 1.5 million from 1.15 million, which may take until 2026 to achieve, added the report. Mobilisation, exodus adding to labor pressures As Putin announced the mobilisation in September, hundreds of thousands of Russians of draft-age left the country as well, contributing to a demographic trend that suggests the working-age population may decline by 6.5 per cent over the following ten years. In a December statement, the Bank of Russia cautioned that “the capacity to grow production in the Russian economy is essentially constrained by the conditions on the labour market.” Around a third of the economic sectors tracked by the statistics service showed a decline in employment last year, but military recruitment offset almost all the negative impact on the overall number, reported Bloomberg. Moreover, conscription and the recruitment of contractors, compounded by the exodus of Russians from the country, led to a decrease in the male labor pool and a shortage in many industries, the report added. Policymakers in Moscow have repeatedly pointed to concerns that deepening labor shortages are hampering Russia’s economy as businesses and sectors seek to adjust to unprecedented international sanctions imposed over the war. Unemployment in Russia fell to 3.6 per cent in January, while real wages increased for in each of the last three months of 2022 amid a dearth of personnel. The statistics service is due to publish its latest data on Wednesday. While unemployment increased on average by 2.4 percentage points during Russia’s three most recent recessions, the jobless figure reached its lowest in 2022 and keeps declining, according to the report. Putin announces partial mobilisation In September last year, Putin announced a partial mobilisation in Russia in a significant escalation that placed the country’s people and economy on a wartime footing. The president also threatened nuclear retaliation, saying that Russia had “lots of weapons to reply” to what he called western threats on Russian territory and added that he was not bluffing. In a highly anticipated televised address, Putin had said that Russia’s first mobilisation since the second world war was a direct response to the dangers posed by the West, which “wants to destroy our country”, and claimed the West had tried to “turn Ukraine’s people into cannon fodder”. “Military service will apply only to citizens who are currently in the reserve, especially those who have served in the armed forces, have certain military professions and relevant experience,” he had said.

Shortly after Putin’s announcement, the country’s defence minister, Sergei Shoigu, said 300,000 Russians would be called up as part of the mobilisation that will apply to “those with previous military experience”.

The announcement was met with Russian opposition groups calling for nationwide anti-war street protests against the mobilisation law while the country’s opposition leader, Alexei Navalny slammed Putin for sending more Russians to their deaths for a failing war.

More from World

India’s US envoy Kwatra discusses bilateral trade ties with US lawmakers Netanyahu accuses Hamas leaders of derailing ceasefire, says eliminating them in Qatar could end Gaza war

“It is clear that the criminal war is getting worse, deepening, and Putin is trying to involve as many people as possible in this,” Navalny said in a video message from jail recorded and published by his lawyers.

“He wants to smear hundreds of thousands of people in this blood.”

With inputs from agencies Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.