In 2000s, the generation of the 80s promoted the growth potential of the labor force. However, it is completely exhausted by now. Taking into account the demographic problems of the 90s, the dynamics will get worse. How and where to look for labor resources?
In 2020, 74,8 million people aged from 15 to 72 formed the working-age population. There is a 1,9 million decrease in the value of the labor force for the past 5 years. In 2015, the Republic of Crimea and Sevastopol promoted the increase in value, but the negative dynamics has been observing for straight 9 years since 2012.
Source: the Federal State Statistics Service (Rosstat)
Problems of the Russian labor market
Along with a shrinking and aging working-age population, the Russian companies will face the following staffing problems, including overabundance of labor force in some professions and an acute shortage of it in others. Today in Russia there is a shortage of industrial, engineering, medical workers and IT professionals.
Sources: Ministry of Science and Higher Education of the Russian Federation, open sources
Replenishment of labor resources occurs mainly from the countries of the former USSR
From 2016 to 2020, 1,9 million people obtained Russian citizenship. Of these, 96,8% are from the ex-USSR countries.
Sources: Ministry of Internal Affairs of the Russian Federation
In 2020, the post-Soviet record 410 thousand applicants from Ukraine received Russian citizenship. For 5 years, 978 thousand Ukrainian immigrants changed allegiance to Russian that is more than half of the total number of new citizens.
There are significantly fewer applicants from other countries.
Sources: Ministry of Internal Affairs of the Russian Federation
Solutions
Realizing the complexity of the situation, the Russian authorities made unprecedented changes in the migration policy. Amendments were made to the Federal law of May 31, 2002 No. 62-FL "On the Citizenship of the Russian Federation". Since July 24, 2020, the most simplified procedure for obtaining Russian citizenship has been in effect for the citizens of Ukraine, Belarus, Kazakhstan and Moldova. Now it is enough to submit an appropriate application, while the condition of five years of continuous residence in the Russian Federation is canceled. Confirmation of the availability of livelihood, as well as renunciation of a second citizenship are not required. If the citizens of Ukraine and Belarus are recognized as a native speaker, an interview for knowledge of the Russian language has been cancelled for them from June 17, 2020.
Cancellation from July 24, 2020 for all foreign citizens of the mandatory requirement to renounce another citizenship upon entering the citizenship of the Russian Federation may additionally attract migrants, especially from the EU, the USA and Canada, where many of our former compatriots live. Renouncing foreign citizenship was a significant obstacle to moving to Russia, especially for people from relatively prosperous countries who do not want to fall out of touch with their second homeland.
The process of attracting the young people is in progress: all foreign students who were educated in Russian universities and have a labor experience in the country for at least 1 year can obtain Russian citizenship in a simplified procedure, without a five-year residence permit and confirmation of a legitimate source of livelihood.
The growth potential of those wishing to obtain Russian citizenship is high: according to the UN on 2019, in terms of the number of international migrants, Russia ranks 4th in the world.
Source: the UN
In accordance with the article 2 of the Federal law as of 12.01.1996 №7-FL, non-profit enterprises are not created to make profit. This fact gives no opportunity to use the profitability criterion as an essential for evaluation of activity of an enterprise.
The analysis of the total expenditure is another way, which allows evaluating the ranges of an enterprise’s activity and effectiveness of its work in comparison to profit.
Information agency Credinform represents a ranking of non-profit enterprises in Russia. The enterprises (TOP-10 and TOP-1000) with the largest total expenditure were selected for the ranking, according to the data from the Statistical Register and Federal Tax Service for the latest available accounting periods (2017 – 2019). Then they were compared to the net profit (loss) values (Table 1). The selection and analysis were based on the data from the Information and Analytical system Globas.
In order to get the most comprehensive and fair picture of the financial standing of an enterprise, it is necessary to pay attention to all the combination of financial indicators and company’s ratios.
Name, INN, region, type of activity | Total expenditure, million RUB | Net profit (loss), million RUB | Solvency index Globas | ||||
2017 | 2018 | 2019 | 2017 | 2018 | 2019 | ||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
The Roscongress Foundation INN 7706412930 Moscow, organisation of conventions and trade shows |
9 772,9 | 6 371,4 | 11 829,6 | 573,0 | 352,7 | 661,4 | 196 High |
SPSnabK SPSSPK EKOPTITSA INN 4813014007 Lipetsk region, manufacture and preserving of poultry meat |
5 656,8 | 7 041,4 | 8 076,3 | 23,8 | 124,5 | -9,2 | 281 Medium |
ANO KIT KI INN 7734266656 Moscow, research and experimental development on social sciences and humanities |
1 082,9 | 5 688,8 | 4 478,3 | 11,6 | 2,9 | 19,8 | 271 Medium |
POLICLINIC OF OAO GAZPROM INN 7728159705 Moscow, general medical practice activities |
3 620,3 | 3 866,9 | 4 106,2 | -270,3 | -331,4 | -446,0 | 248 Strong |
MOSCOW UNIVERSITY FOR INDUSTRY AND FINANCE SYNERGY INN 7729152149 Moscow, higher education |
2 727,9 | 3 481,3 | 4 039,1 | 41,2 | 33,3 | 43,2 | 248 Strong |
MOSCOW SCHOOL OF MANAGEMENT SKOLKOVO INN 5032180980 Moscow region, higher education |
2 484,6 | 2 951,7 | 3 803,1 | -15,4 | -129,2 | -446,0 | 296 Medium |
ANO SBERBANK UNIVERSITY INN 7736128605 Moscow, other professional education |
3 698,3 | 3 462,2 | 3 561,2 | 68,9 | 20,8 | 34,4 | 249 Strong |
PO STUPINSKOE RAIPO INN 5045018663 Moscow region, retail sale in non-specialised stores with food, beverages or tobacco predominating |
3 772,2 | 3 577,8 | 3 363,8 | -15,4 | 70,1 | -43,1 | 304 Adequate |
ChU NEFROSOVET INN 7730184402 Moscow, human health activities |
2 488,7 | 2 684,0 | 2 648,1 | 5,2 | -116,2 | 7,0 | 280 Medium |
ChU CHUZ KB RZHD-MEDITSINA G. CHELYABINSK INN 7451207988 Chelyabinsk region, hospital activities |
1 803,2 | 2 037,8 | 2 519,7 | 39,0 | 93,5 | 27,7 | 218 Strong |
Average value for TOP-10 | 3 710,8 | 4 116,3 | 4 842,5 | 61,6 | 12,1 | 17,5 |
improvement compared to prior period, decline compared to prior period
Seven enterprises increased their total expenditure in 2019 comparing to the prior period. Four enterprises showed losses in 2019.
During 6 years, the average industry values of the total expenditure had a trend to increase (Picture 2).