Moscow’s Economic Growth Will Force It to Seek Talent Abroad

The labor market in Russia needs talent—a new study, after a pause caused by the departure of a significant number of qualified specialists from the country following the start of the military operation in Ukraine, brings back to the agenda the issue of attracting the most productive personnel to the economy and the necessary transformations for this. As the authors note, the priority for the city authorities among talents should be two groups of workers—Russians ready to return from emigration and highly qualified specialists from India, China, and South Korea.

The rapid growth of Moscow’s economy will force the city authorities to more actively attract personnel from abroad. This conclusion was reached by experts who released the report “Attracting Foreign Talent: Global Practice and Prospects for Moscow.”

Moscow is the region with the largest economy in the country: its share in Russia’s GDP at the end of 2024 reached 21%. Moreover, if the Russian economy grew by 4.3% last year, according to estimates, Moscow’s GRP in 2024 increased by 5.5%, to $1.39 trillion. As a result, Moscow ranked second in the list of world megacities by this indicator—it was ahead of Shanghai ($1.29 trillion), Tokyo ($1.28 trillion), and Beijing ($1.2 trillion), while New York took first place ($1.54 trillion). The main drivers of the city’s economy are the IT sector, telecommunications, manufacturing, real estate, and construction. For example, over six years, Moscow’s IT sector has grown more than fourfold—digital services now account for 36% of the city’s economy.

As a result, half of those employed in Moscow are highly qualified specialists (HQS). Accordingly, the majority of unfilled vacancies that arose during the period of personnel shortage in the Russian labor market in Moscow fall on high-tech industries. For example, according to data, in 2017–2024, the personnel shortage in the field of information and communication in Moscow increased by 4.7 times, in manufacturing—by 3.9 times, in science—by 1.3 times. In addition, Moscow has a higher demand for managers, top-level specialists, and employees engaged in the preparation and processing of documentation—these categories account for 42% of all vacancies, which is 10 percentage points higher than the average for Russia.

As the authors of the report note, Moscow now has two ways to replenish its labor market with new specialists.

The first is to attract to the city those who left the country in 2022. According to respondents from Moscow companies, the number of those who did not settle abroad is growing, and soon these workers will begin to look for employment in Russia. Their integration is likely not to require significant resources from either the hiring companies or the city—rather, they will need consultations on migration issues and their status. The second way is to hire highly qualified specialists from non-CIS countries. Moscow is already the key center in Russia for their attraction—on average, the capital accounts for 42.4% of all work permits issued in the country for representatives of this category. Among those ready to come to the city, the most HQS are citizens of China (33%), Turkey (28%), India (12%), South Korea (3%), and Serbia (2%).

To multiply this flow, the authors of the report consider it important to work in several directions at once. First, in their opinion, it is necessary to more actively promote Moscow as a global megacity abroad, since ideas about this city as a comfortable place to live require informational support. Next, in their opinion, it is important to create a maximally clear immigration path for those wishing to move to Moscow, so that bureaucratic complexities do not scare away potential candidates. Finally, the authors of the report call on the Moscow authorities to work on attracting foreign specialists together with businesses, developing programs to support corporate immigration initiatives.

Moscow

Moscow is the capital and largest city of Russia, with a history dating back over 800 years to its founding in 1147. It is a major political, economic, and cultural hub, historically serving as the capital of the Tsardom of Russia, the Soviet Union, and now the Russian Federation. The city is famed for its iconic landmarks, including the Kremlin, Red Square, and St. Basil’s Cathedral.

Russia

Russia is the world’s largest country by area, spanning Eastern Europe and northern Asia. Its long and complex history is defined by the rule of the Tsars, the Soviet era, and its modern formation as the Russian Federation following the USSR’s dissolution in 1991. The nation is renowned for its vast landscapes, rich literary and artistic traditions, and iconic cultural sites like the Kremlin and St. Basil’s Cathedral in Moscow.

Ukraine

Ukraine is a sovereign Eastern European nation with a rich cultural heritage and complex history, having been a center of East Slavic culture as the medieval state of Kievan Rus’. It experienced centuries of foreign rule before gaining independence in 1991 following the dissolution of the Soviet Union. The country is known for its Orthodox Christian cathedrals, Cossack traditions, and vibrant folk art.

India

India is a culturally rich and historically diverse nation in South Asia, known for its ancient civilizations, including the Indus Valley, and a long history of empires and kingdoms. It is home to numerous iconic cultural sites, such as the Taj Mahal and various temples, reflecting a heritage of profound spiritual traditions and architectural marvels.

China

China is one of the world’s oldest continuous civilizations, with a recorded history spanning over four millennia. It is home to numerous iconic cultural sites, such as the Great Wall, which was built over centuries starting in the 7th century BC to protect against northern invasions. Today, it is a major global power, blending its profound ancient traditions with rapid modernization.

South Korea

South Korea is a vibrant East Asian nation known for its rapid economic development and rich cultural heritage, which includes ancient kingdoms like Silla and Joseon. It is famous for its modern technology and pop culture, as well as historic sites such as Gyeongbokgung Palace and the Jongmyo Shrine. Following the Korean War, it emerged from devastation to become a global economic powerhouse and a leading democracy in the region.

Shanghai

Shanghai is a major global financial hub and China’s largest city, which grew from a small fishing village into a significant port following the 1842 Treaty of Nanking. It is renowned for its striking blend of historic architecture, such as the Bund, and modern skyscrapers in Pudong, reflecting its colonial past and rapid economic development.

Tokyo

Tokyo is the modern capital of Japan, but its history dates back to the 15th century when it was a small fishing village named Edo. It became the nation’s political center in 1603 when Tokugawa Ieyasu established his shogunate there, and it was renamed Tokyo (“Eastern Capital”) after the emperor moved there in 1868. Today, it is a vast, densely populated metropolis known for its towering skyscrapers, historic temples, and global influence in technology and culture.