According to State information, Russia’s largest automaker, Avtovas, wants to fill the gaps in its workforce with prisoners. The penitentiary administration of the industrial region of Samara announced today that the manufacturer Lada had requested the allocation of prisoners sentenced to forced labor due to the extremely tense situation in the labor market. This was discussed at a meeting between representatives of both sides.
The Russian auto industry is gradually recovering from last year’s historic slump. After Russia attacked Ukraine, Russian car production dropped to 450,000 cars last year, in part because of Western economic sanctions. That was the lowest level since the end of the Soviet Union.
Several Western manufacturers have pulled out of the country, including Renault, the former majority shareholder of Avtovas. Among other things, Avtovas is struggling with a shortage of vehicle components.
The Russian job market is practically full. The unemployment rate dropped to a record low of 3.3% in April. As a result of the war in Ukraine, hundreds of thousands of men were called up for military service and many more fled abroad.