russian invasion in ukraine leaves its own economy barren
Last updated on April 14th, 2022 at 02:16 pm
Russia – Job prospects continue to become scarce in Russia as the Ukraine war stretches on into another month. With many companies withdrawing their operations in Russia, people are witness great loss of jobs as of now. This has severely affected the Central Asian migrant worker which is now returning back home, with low to no hope of sending remittance back to their hometowns. This includes workers coming from Kyrgyzstan, Tajikistan, and Uzbekistan.
Russia is the destination for most Central Asian labor migrants and therefore the main source of remittances. Russia is also a major trade partner of these countries.
The Russian market is sliding down a steep slope by the day. Sanctions imposed by Western nations to punish Russia for what it calls a “special operation” in Ukraine have sent the economy into a tailspin, with inflation and economic contraction both expected in the double digits.
Sanctions imposed by Western nations to punish Russia for what it calls a “special operation” in Ukraine have sent the economy into a tailspin, with inflation and economic contraction both expected in the double digits.
According to official estimates given by the Centre for Strategic Research in Moscow, job losses in Russia could swell by as much as 2 million by year-end. In the worst-case scenario, unemployment could approach 8%, the think-tank estimates, almost double February levels.
Over 600 companies have announced their withdrawal from Russia since the invasion hit, according to the Yale School of Management, though many will pay employees for a few months. Political analysts have said that this war is going to change the economics for Russia forever. It is no exaggeration to say that indeed, Russia has been forcefully yanked out of the global financial system. There will be an uptick in white collar unemployment as foreign companies and banks are leaving, but companies are also withdrawing from sectors such as retail that employed cheap labour.
With McDonalds having employed more than 60,000 staff, French carmaker Renault 45,000 and retailer Ikea with 15,000, Orlova calculates that Western firms’ departure will directly cause the loss of approximately one million jobs. Western embargoes on Russian exports, if implemented, may force mining and oil firms to lay off staff.