A spike in housing prices predicted as the Irkutsk region suffers from a lack of migrant labour at construction sites

2020-11-07

The construction market of Irkutsk is suffering from a shortage of foreign labor that is increasingly felt, reports Komsomolskaya Pravda.
Due to the pandemic, the borders have been closed since spring and migrants have not returned, due to this, the pace of construction has dropped. This threatens to turn into another rise in prices for housing in the Irkutsk region.

Irkutsk Oblast has the largest foreign labor quota in all of Siberia – about 5,000 people. More than half of all general construction works were on the shoulders of visitors here, at some objects – up to 80 – 90%.

Some migrants – Tajiks, Armenians, Uzbeks – live in the Angara region all year round and they are exactly the ones working hard on the constructions sites as we speak. Specialists from China, who are appreciated for the speed and quality of work, come for seasonal jobs and simply did not have time to arrive before the quarantine. In this regard, the Irkutsk region is sorely lacking qualified bricklayers, concrete workers, plasterers.

At this stage, Irkutsk construction companies are frantically trying to close the gap. According to their representatives, this is not easy, since local residents are in no hurry to find jobs at construction sites, preferring warm offices.

This is not surprising: it is in fact extremely unprofitable for Russian construction companies to hire Russian workers. It is much easier and cheaper to pay for a patent (and save money due to the migrants’ ignorance of the laws of the Russian Federation) than paying contributions to the pension fund and social insurance fund and reckoning with the Labor Code of the Russian Federation. Therefore, entrepreneurs start talking about raising the prestige of blue-collar jobs among Russians only when urgently needed.

It turns out that without migrants, many of whom work for a pittance and live in inhuman conditions, Irkutsk construction projects seem to feel almost disabled. Developer’s costs are rising and construction speed is dropping. The supply of housing is also falling, this in a market environment, will quite naturally lead to another increase in housing prices in Irkutsk and the region.

This is the whole “magic” of the capitalist system! If it will not be possible to save money during construction (force majeure, you must understand),
these сosts of production will be shifted onto the shoulders of working-class citizens in need of housing.