Labor Shortage Forces Employers to Do More with Less Workers

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The Federation of Independent Trade Unions of Russia (FNP) draws attention to growing imbalances in the labor market, reports Rossiyskaya Gazeta. According to the organization, there is a noticeable increase in phenomena such as shadow employment and hidden unemployment.

Employers are increasingly resorting to flexible employment formats, including reduced working weeks, partial shutdowns, corporate vacations, and other tools that allow them to reduce labor costs.

Experts note the paradox of the current situation. Despite record-low official unemployment rates, companies are actively reducing actual employee workloads. Associate Professor at Plekhanov Russian University of Economics, Vadim Kovrigin, points out that some industries are experiencing a severe shortage of workers, which drives up wages and makes them a key business expense. In response, employers are trying to increase labor productivity and optimize personnel use, including through reduced working hours. However, he believes it is premature to talk about a systemic crisis.

Trade union representatives, however, see a more alarming picture. According to Maria Koleda from the union "New Labor," the labor market has effectively split into two parts. Highly skilled specialists remain in a favorable position and can dictate terms, while a significant portion of workers face reduced schedules and income. Often, the reduction in working hours is only formal: the volume of tasks remains the same, but pay decreases.

The causes of this situation are complex. On the one hand, businesses are trying to retain valuable employees in an environment where about 65% of employers report a shortage of personnel. On the other hand, macroeconomic pressures, including a high key interest rate and increased tax burden, force companies to cut costs. Additionally, tougher migration policies are limiting the influx of labor.

This model carries significant risks. A decline in real incomes leads to a drop in consumer demand and can create a "weak market" effect, slowing economic growth. At the same time, worker motivation declines, debt burdens increase, and psychological stress intensifies among those who are formally employed but are losing part of their income.

Against this backdrop, there is a growing trend towards shadow employment. According to experts, by early 2026, the number of people employed outside the official sector reached about 5 million, and some estimates suggest that up to 8 million people receive income informally. Employers, facing a labor shortage, are willing to fill vacancies without formal employment, while workers are increasingly accepting such conditions due to declining wages. An additional factor is the rising cost of maintaining full-time employees, which encourages businesses to seek workarounds.

Platform-based employment is also playing an increasingly significant role. For many, it becomes a way to compensate for lost income: digital services allow for quick job-finding and payment. However, there are risks here as well—some companies use the status of self-employed individuals to substitute for employment relationships, avoiding taxes and social obligations. The government, in turn, is strengthening control over such practices.

Experts agree that the current situation requires systemic solutions. Key measures include supporting workers with part-time employment, establishing transparent rules for platform-based economies, and creating incentives for legalizing labor relations. Without this, analysts warn, economic slowdown may continue to push workers into the informal sector.

Statistics confirm these trends. According to Rosstat, about 1.1 million people are on leave by mutual agreement, and another 2.5 million are on unpaid leave. As Professor Alexander Safonov of the Financial University notes, this practice is well-known since the 1990s: companies use it to reduce costs without resorting to mass layoffs.