Personnel Gap in Russia: Market Failures or Inefficiencies in Public Employment Policies?

Abstract:

At present, despite a high level of the Human Development Index in Russia, there exists a shortage of highly qualified personnel. This is due to a systemic crisis in the country's economy, as a result of which there is an unbalance between the level of remuneration and the level of staff qualification. Salaries of employees do not depend on the level of qualification, but on the average level of wages in the region. Ineffective government policy is compounded by opportunistic behavior by business representatives who use this situation to obtain high rates of return in the short term by reducing the payroll budget. As a result of the analysis carried out, the work outlines the main causes of the crisis in the employment system and personnel shortages in the Russian labor market. The “lock-in effect” was found, which explains the absence of any prospects for Russia's economic development in the prevailing realities. A set of measures is proposed to solve this problem, which should be implemented by both government officials and business representatives.

nsdlogo2016