Subject. The article considers the educational system reform in Russia. Objectives. The aim is to formulate recommendations for the Russian education system development, taking into account changes in the needs of the national labor market and human capital formation trends. Methods. We employ methods of logical and statistical analysis. Results. The study states that the low level of financing (3.7 percent of GDP in 2020) leads to a decline in the number of academic and teaching staff and students, and the quality of education, in general, is degrading. The introduction of the uniform State exam reduced the motivation of school leavers to enter universities and colleges. Conclusions. It is crucial to pay attention to the development of higher education institutions in regions. The main problem is to update the material and technical facilities.
Keywords: education, digitalization, labor market, educational process participants
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