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National Interests: Priorities and Security
 

Assessment of the needs of the Russian labor market for foreign workers

Vol. 11, Iss. 2, JANUARY 2015

Available online: 7 January 2015

Subject Heading: STRATEGY OF ECONOMIC ADVANCEMENT

JEL Classification: 

Pages: 10-21

Tatarkin A.I. Institute of Economics, Ural Branch of RAS, Yekaterinburg, Russian Federation
tatarkin_ai@mail.ru

Vasil'eva A.V. Institute of Economics, Ural Branch of RAS, Yekaterinburg, Russian Federation
sa840sha@mail.ru

Importance One of the reasons for delay of the Russian economic growth rate is the reduction of the labor force and professional and skill imbalance of its demand and supply. In this environment, migration serves as a flexible instrument of ensuring the required number of economically active population and reproduction of the branch structure of labor force.
     Objectives Thus, migration policy has to provide effective selection of foreign workforce in terms of professions, specialties and qualifications, which are necessary for the Russian sustainable development.
     Methods The paper offers an evaluation methodology of the need of the Russian labor market for foreign workforce, which corresponds to the shortage of manpower and is determined as the current demand for labor force minus supply of labor broken down by various professional groups. The demand for labor is defined by the number of workers that are necessary to fill in vacant job positions. The labor force supply is formed at the expense of the population entering labor market, including unemployed citizens and graduates from professional education establishments. Applying the offered methodology, we evaluate the steps on liquidating the shortage of foreign labor in Russia in 2012.
     Results The estimation of liquidating the country's shortage of foreign labor in 2012 suggests that the designated quotas of work permissions for foreign nationals did not meet the real needs of the Russian labor market. Therefore, the methodology for the evaluation of the needs for foreign labor and the introduction of its employment quotas, approved by the immigration legislation does not permit determining the Russian economy's real demand for migrants.
     Relevance The offered methodology can be applied for establishment of work permission quotas in the Russian Federation to be offered to foreign citizens.

Keywords: labor shortage, professional structure, foreign workforce, quota, work permission

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