In a discussion about Russia’s labor market, Deputy Chairman of the State Duma Alexander Babakov argued that solving the personnel shortage hinges on higher wages. He described this approach as a signal of a broader wage shift in the economy, calling it a precursor to what he terms a salary revolution. The report cites URA.RU as the source of the remarks.
Babakov emphasized the need for systemic steps to boost labor productivity, increase the capital-to-labor ratio in production, and, as a result, accelerate wage growth. He asserted that the salary revolution has already begun to take shape and is poised to accelerate, provided that meaningful reforms are implemented.
Among the measures he proposed, Babakov highlighted updating fixed assets, implementing ongoing training for entrepreneurs, and easing the tax burden on production costs. He linked these actions to a more sustainable path for rising wages, arguing that competitive compensation is essential for retaining skilled workers in a changing labor market.
According to the deputy speaker, inflation outpaced household income growth, a gap that has widened the demand for higher-skilled labor with salaries surpassing the national average. The labor market recently shifted its focus toward qualified specialists, underscoring the importance of attracting and retaining talent in more lucrative roles.
Babakov noted a longstanding practice of filling labor gaps with migrant workers from former Soviet republics. He warned that this approach would be less effective under current conditions, pointing to the ruble exchange rate and noting that wages in Russia have fallen to about half the levels seen in China. He argued that the issue is not a general labor shortage but a shortage of higher-wage opportunities for workers.
Earlier in the week, discussions in the State Duma raised concerns about insufficient funding for regional salaries, signaling potential budgetary constraints that could affect wage growth across different regions.
Some observers juxtapose these calls with broader macroeconomic measures, such as adjusting interest rates to cool excess credit growth, suggesting a link between monetary policy and wage dynamics. The overarching theme remains clear: to address the evolving needs of the labor force, policy actions must align with higher productivity, capital investment, and more competitive compensation. (Source: URA.RU)