Russia's demographic decline

Russia saw a rapid expansion in population during the Soviet era as the country was industrialised and the population moved into the cities. The population rose from circa 100mn in 1945 following WWII to 148.5mn in 1992, after which the economic chaos of that decade both depressed fertility and increased the death rates, especially amongst men. Life expectancy in particular crashed after the economy collapsed in 2009.

Now things are even worse. Compared to the peaks of the boom years in the early noughties, fertility rates in Russia have fallen by almost a third and are now even lower than in the mid-1990s, when an average of 9.3 children were born per 100,000 people.

While the death rate is growing at the same time, the natural population decline continues to accelerate: 264,300 people per quarter, or 7.3 people per 100,000 of the population – new all-time lows for the entire modern history of the country.^[5]

The Covid-19 pandemic caused life expectancy in Russia to fall by 3.3 years. It quickly began to recover in 2022, rising by 2.7 years. However, the war has disrupted this progress, and life expectancy is now impacted by war-related deaths and stress-induced substance abuse. Lower incomes and worsening access to medication, diagnostics, equipment and treatment are further reducing life expectancy.

The war may also cause a decrease in inward migration, which has previously helped offset Russia's natural population decline. From 1992-2019, the natural loss was 13.8 million people, but inward migration compensated with 9.6 million. Russia could now find itself in a situation where natural and migratory losses reinforce one another...

Shifts in the age structure of the population pose a substantial demographic risk for Russia's economy. The generations born in the 1990s and 2000s, when Russia's birth rate was at its lowest, are now entering the labor market. This will exacerbate the existing crisis due to a lack of young workers. Meanwhile, the post-war generations of the 1950s and 60s are aging and approaching retirement.^[7]

A smaller population means a country's lower economic potential, a shrinking domestic market, worsening demographic problems and an aging population, as well as a decrease in the country's geopolitical power. The population size still correlates with the weight in international relations, the ability to promote their interests on the world stage. And the declining population for the largest country in the world may cause some neighbors on the continent, especially the eastern ones, to be tempted to solve their internal growing problems by some external adventures. But will Russia find anyone and how to fight back, will there be allies?^[8]

The poll by Russia’s Yegor Gaidar Institute for Economic Policy, which surveys managers of around 1,000 industrial enterprises in the country each month, found in April that 35 percent of enterprises lacked workers. The institute said that was the highest figure since 1996.

The shortage was partly down to Russia’s “partial mobilization” of its population starting from September last year, according to the institute.

Russian outlet RBC reported Thursday that Sergey Tsukhlo, the institute’s head of business surveys, told a conference where he presented the findings that understaffing in the country represented “a deep and long-term problem” that was holding back the country’s industrial growth...

Putin admitted in April that the country “does not have enough workers,” while Russian Economic Development Minister Maxim Reshetnikov in March said issues with training and labor productivity were becoming “questions of survival” in the country.^[11]