Migrants shortage – general workers wages rise

2021-08-24

In the first half of 2021, business demand for general workers has increased significantly: so much that there is a shortage of migrant workers. This information follows from research conducted by HeadHunter (the biggest Russian company of internet recruiting). According to the data, the competition among workers for a single place in production, construction, transport, as well as housekeeping dropped to 1-2 people per place, while a year ago 2-5 migrant workers applied for a single place.

“The first wave of the pandemic entailed a decrease in migration – workers from Asian countries began to massively return home, and, as we could see, the dynamics of the resume, the reverse trend had not even been outlined in the summer of 2021. The 2% growth in CVs of applicants from Asian countries means that the outflow of last year was barely compensated”, – said Natalya Danina, Director of the Department of Analytical Business Solutions at HeadHunter.

A shortage of unskilled labor is observed in many industries, says Artyom Kumpel, Managing Director of Avito (Russian classified advertisements website). There are not enough people in housing and communal services, construction, agriculture. Public catering and consumer services also suffer from the lack of the people. The number of vacancies over the past two years decreased: in the spheres of transport and logistics – by 136%, manufacturing – by 127%, construction – by 104%.

At the same time, builders are needed more and more. Concerns in Europe about environmental problems force re-orientation the oil and gas industry towards the construction industry. “Construction – new oil” is the slogan of the latter. The shortage of unskilled labor in this industry, designed to minimize losses from the downturn in oil and gas exports, is fatal.

In July the Ministry of Construction announced that the construction industry needs 2 million people. In August – already 3 million. Officials solve the issue of direct import of labor with the help of the Ministry of Internal Affairs and Rospotrebnadzor.

“They often use the simplest professions in their resume, which do not require education or special skills. But sometimes workers change jobs due to difficult working conditions. Once they enter the country and receive an official work permit, they can choose higher-paid or less physically difficult offers”, – said Kumpel.

Construction is not an easy industry, especially when there are not enough workers, the needs of the business are so great that you have to work 10-12 or more hours a day. Guest workers are moving into other areas, for example, delivery.

At the same time Delivery Club (the biggest food delivery company in Russia) is doing well: the need for employees is growing along with orders. The company has more couriers. RBC (large Russian media group) notes that in June 2020 Delivery Club completed 5 million orders, in June 2021 – already 7 million.

“Employers are raising wages in an effort to attract workers. The increased salary offers have partly become a catalyst for the rise in prices for products and services”, – sums up Kumpel.

The government’s ambitious strategies will force migrants to work harder despite rising wages and attempts to increase the number of workers. Along with the intensification of labor exploitation, an increase in the number of labor conflicts is expected – after all, despite the powerless position, the guest worker will not endure indefinitely, as we proud Russians do.