The number of migrant workers employed on Russian construction sites dropped by 15–20% in the first quarter of 2025 compared to the same period last year, falling to approximately 500,000. This was reported by RIA Real Estate, citing Anton Glushkov, President of the National Association of Builders (NOSTROY).
“Previously, employers favored migrant workers due to significantly lower labor costs, but that 30–40% wage gap has largely disappeared. Now, the difference in favor of Russian workers typically does not exceed 10–15%, depending on the region,” he noted.
Stricter regulations for migrant workers are naturally contributing to a decline in their numbers. This reduction in labor supply is driving wages upward, which in turn increases the financial burden on businesses. As a result, rising labor costs could potentially lead to a decrease in business activity, warns Sergei Khestanov, economist and associate professor at RANEPA.
“The construction industry has long relied heavily on migrant labor, which is why the current shortage is being felt so acutely. However, if we assume that the construction boom in Russia has peaked and a broader slowdown in the sector is approaching, then the restrictions on migrant labor may no longer pose a significant threat,” the expert explains. “In fact, if the anticipated decline in business activity materializes, these labor market constraints could serve as a kind of buffer — helping the industry transition through a ‘soft landing.’ And a soft landing is far less disruptive than a hard one. In that sense, the situation may have a silver lining.”