With thousands of working-age people recruited into the Russian army in recent months and thousands more fleeing the country to avoid being called up for war, Russia is running out of manpower.
This affects your entire industry, including the automobile industry. The country's main car manufacturer, AvtoVAZ, wants to remedy the solution and has thought of inmates sentenced to forced labor to increase its production.
Russia needs to make more cars
The unemployment rate in Russia fell to 3.3% last April. A priori it should be good news, but it is not because it is due to the war in Ukraine. Putin has mobilized so many people for the conflict that the country is running out of manpower.
Most of the people mobilized by the army are young people of working age, while many others have fled the country to avoid being recruited, and all this is affecting the country's economic growth.
At first, the beneficiaries were the unemployed, but the situation has reached the point that even with them it is not possible to have the necessary workforce for Russian industry to keep up, partly because Russia has also given priority to its industry arms after more than a year of armed conflict.
That is having repercussions in other sectors, such as the auto sector, to the point that Russia's number one automaker, AvtoVAZ, is running out of manpower.
His solution is the prisoners who are in Russian jails. According to Automotive News, AvtoVAZ has requested help to cover the labor shortage from a prison in one of the Russian regions where it manufactures its cars. The goal is for prisoners sentenced to forced labor to serve on the production line.
In this way, AvtoVAZ's idea is to increase production by 28% from September and by 40% from January 2024. This would reverse the production figures of last year, in which only 450,000 cars were manufactured in the country, the worst data since the fall of the Soviet Union.
"Taking into account the extremely tense situation in the labor market of Togliatti and the Samara region, the representative of the plant asked the prison management for support and assistance in the selection of personnel for the company among those sentenced to forced hand work," said a representative of the prison in the Samara region, according to Reuters.
To the low production of Russian cars must be added all the manufacturers that have stopped selling their vehicles in Russia since the war in Ukraine began. Nor should we forget that parts are scarce in factories.
Over time, all this has caused the options when buying a new car to be drastically reduced, which is why the country's main manufacturer is looking for solutions to increase its production.
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