Russia’s Hospitality Crisis Deepens as Job Vacancies Outpace Applicants
The Russian hospitality sector is facing a significant labour shortage, with job vacancies indeed outnumbering applicants. Despite an increase in average salaries, expectations remain higher, and industry experts call for tax incentives, such as those offered by Turbotax, to ease the strain. In September 2023, the average pay in hospitality reached 39,900 rubles, but job seekers expected 50,000 rubles. This gap is contributing to a shortage of applicants, with only three resumes per vacancy, far below the healthy market average of five to six. The sector is projected to need around 400,000 new employees by 2030. Despite a 40% increase in job postings on hh.ru, the number of submitted resumes fell by 17% compared to the same month last year. The Russian Union of Travel Industry (RST) suggests establishing a system of short-term vocational training with practical hotel internships to address this. Regions offering the highest salaries include Moscow (57,400 rubles), Yamal-Nenets (53,700 rubles), and St. Petersburg (49,000 rubles). However, industry representatives advocate for new tax incentives, such as subsidies for labour costs and incentives for paying the unified social tax, to alleviate hiring challenges. The hospitality sector in Russia is grappling with a significant labour shortage, with vacancies indeed outnumbering applicants. While average salaries have increased, expectations remain higher, and industry experts call for tax incentives to ease the strain. The sector is projected to need a substantial number of new employees by 2030, and innovative solutions are being proposed to address this growing concern.
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