Russia, Feb 09 : Russia is expanding its search for foreign workers to India and Sri Lanka as the country grapples with one of the most severe labour shortages in decades. Driven by demographic decline and the ongoing war in Ukraine, officials estimate the economy will require nearly 11 million additional workers by the end of the decade.
The issue gained prominence during President Vladimir Putin’s visit to New Delhi in December, where both sides signed an agreement to streamline temporary labour migration. The number of work permits issued to Indian nationals has already surged, rising from about 5,000 in 2021 to over 56,000 last year. Overall, more than 240,000 permits were granted to foreign workers in 2025 the highest level in at least eight years.
Recruiters say the Russian labour market is undergoing a significant transformation. With unemployment hovering near 2%, businesses are increasingly turning to South Asia and other regions to fill vacancies across municipal services, construction, hospitality and urban infrastructure.
Agencies have begun setting up training initiatives to prepare workers before deployment. A welding training centre has been launched in Chennai, while language crash courses are being organised for roles requiring basic Russian proficiency. Employers view visa-bound workers as more stable compared to migrants from visa free regions, who are more likely to change jobs.
The labour crunch has been intensified by the war economy, which has redirected manpower toward defence production. At the same time, hundreds of thousands of working-age Russians have left the country since the conflict began, further shrinking the talent pool.
Major industries are already feeling the strain. Mining giant Norilsk Nickel has reported a shortage equivalent to roughly 10% of its workforce, while a leading shipbuilder is operating at nearly half capacity due to staffing gaps. Skilled foreign workers can also be more cost effective for instance, Indian electricians are often hired at lower wages than their Russian counterparts.
Security concerns following the 2024 Crocus City Hall attack led to tighter migration rules, contributing to a drop in the number of foreign nationals living in Russia. Still, arrivals from countries such as North Korea and China are rising, with North Korean labour expected to support construction projects and Chinese workers largely employed within their own business networks.
Demographers warn the situation is unlikely to ease anytime soon. Russia’s population continues to age, and the proportion of younger citizens is steadily declining signalling that reliance on overseas labour may become a long-term feature of the country’s economic strategy.