Russia’s War Fuels a Wage Spiral That Threatens Army Recruitment
- Civilian wages outpace military pay for fighting in Ukraine
- Kremlin has avoided another call-up ahead of March elections
Russia’s war in Ukraine is intensifying an acute deficit of workers that’s hitting businesses from metal refineries to posh Moscow restaurants and igniting a race to increase salaries that threatens the Kremlin’s ability to replenish the armed forces.
The competition for employees has pushed wages up at a double-digit pace and made once-relatively lucrative military service less appealing, even after a 10.5% increase in monthly pay to fight in the war last year. Specialists such as engineers, mechanics, machine operators, welders, drivers and couriers can now find jobs with salaries comparable to or greater than in roles with the army after compensation for such work rose by 8%-20% last year, according to data from local recruitment service Superjob seen by Bloomberg.