What's Happening?
In Russia's Altai Krai, there has been a significant decline in civilian manufacturing jobs, as reported by the Foreign Intelligence Service of Ukraine. The region has seen a 23% drop in open and updated
vacancies in the first nine months of 2025 compared to the same period in 2024. Concurrently, the number of new or updated resumes has increased by 41%. This downturn is attributed to a reduction in civilian production and a decline in investment activity, with industrial production falling by 3.2% in the first eight months of 2025. The machine-building, chemical, and metallurgy sectors are particularly affected, while the defense industry remains the only sector actively hiring.
Why It's Important?
The decline in civilian industry jobs in Altai Krai highlights the region's economic dependency on military orders. As the defense-industrial complex absorbs resources and personnel, the civilian economy is left without development prospects. This situation poses significant risks, as a reduction in military funding could lead to an economic crisis in the region. The shift in employment dynamics underscores the broader economic challenges facing Russia, where domestic demand stagnation and export declines are impacting industrial sectors. The situation in Altai Krai serves as a microcosm of the challenges facing regions heavily reliant on defense spending.
What's Next?
Regional enterprises in Altai Krai are exploring ways to adapt to the changing economic landscape. Strategies include reviewing costs, altering work schedules, and retaining qualified personnel in anticipation of a future recovery cycle. The region's economy remains sensitive to external demand and financing factors, suggesting that stabilization of employment and production structures will depend on macro-level developments. The potential for a shift in military funding could further influence the region's economic trajectory, necessitating strategic adjustments by local industries.
