Time and money: who's in charge of the labor market now

Salaries of the younger generations — millennials and zoomers — in Russia are growing faster than the national average. This is evidenced by the data from recent studies of "Cyberanalytics" and "Work.ru". At the same time, the labor market is undergoing a noticeable restructuring: demand is shifting in favor of the young, and the shortage of personnel is losing its urgency. However, according to experts, such dynamics are more likely a reflection of the natural demographic cycle than a unique case in the labor market. The details are in the Izvestia article.

Who gets paid more and why

The largest increase in salaries in 2024 was recorded among employees aged 20 to 35 years. This covers representatives of two generations — zoomers and younger millennials. At first glance, it may seem that employers value these cohorts for their unique skills. But economists offer a more pragmatic explanation.

— In Russia, there are significant differences in the salaries of employees of different age groups. The highest level of wages is among 30-39-year-olds, while young people and the elderly are characterized by relatively low labor earnings. Accordingly, the generation who is now 20-35 years old always has the highest wage growth," Viktor Lyashok, senior researcher at the INSAP Center of the IPEI Presidential Academy, explained to Izvestia.

He added that at ages close to retirement, there may even be a decrease in the level of labor income.

According to him, the reason is not the outstanding features of millennials or zoomers, but the fact that at any given time, the most noticeable wage growth is among those who actively enter the labor market. Older generations often lose out on income at this point.

— This situation is not related to the characteristics of specific generations. The most likely explanation is the rapid obsolescence in modern conditions of the knowledge and skills that an employee receives in schools and universities, as a result of which employers prefer to hire younger workers. Discrimination of the older population in the labor market also plays a role," Viktor Lyashok added.

Zoomers at the start, boomers at the exit

Current zoomers (born after 1997) and younger millennials are indeed perceived by employers as more flexible and easy to learn. However, they have not yet taken leadership positions en masse. Boomers— the older generation, including people aged 55+, retain leadership positions, but are starting to lag behind in terms of income. Experts attribute this to the transition to part-time employment or work outside the main markets.

— There is no sudden generational change in the labor market right now. Rather, we are talking about adjusting the salary structure: those who were young specialists until recently have reached their professional heyday. And for those who are closer to retirement age, it is more difficult to adapt to new requirements and technologies," explains Yulia Makarenko, Deputy Director of the Banking Institute for Development.

According to her, the share of senior workers in active employment is also decreasing due to demographic factors: the 55+ generation is simply less numerous and more likely to leave the structure of permanent employment.

The market is looking for balance

The general labor market situation remains a key factor affecting wages and employment. It was still tense in 2024, although some indicators indicate the beginning of stabilization. The unemployment rate, according to Rosstat, dropped to a historic low of 2.3% in April.

— The labor market remains tense, as the return of the unemployment rate to a historic low after 2.4% in January—February, as well as the resumption of an increase in the number of job applications from companies in March-April, indicates continued rigidity. But a number of operational indicators show that tensions have stopped rising and are decreasing slightly," says Olga Belenkaya, Head of the Macroeconomic Analysis Department at Finam.

According to her, the index hh.ru , reflecting the ratio of resumes to vacancies, reached 5.9 in March, the highest since the spring of 2022. This means that there are more applicants, and the number of new vacancies is decreasing. For example, in May 2025, there were 25% fewer vacancies than a year ago, and 29% more resumes.

— Judging by the hh index, retail trade, medicine and pharmaceuticals, manufacturing and service services, and workers remain the most deficient industries in terms of personnel. Marketing, PR, and administrative staff are the least scarce," adds Belenkaya.

Inflation-adjusted growth

At the same time, despite the fact that nominal salaries continue to rise, real incomes of citizens, especially in the spring, actually slow down.

— The latest data from Rosstat relate to March: a slowdown in nominal average wage growth to 10.5% (year-on-year) after 13.6% in February and real to 0.1% (year-on-year) after 3.2% in February. But these statistics are not representative due to the early payment of bonuses by some companies in December due to the transition to a progressive personal income tax scale," says Belenkaya.

According to her, a more objective picture can be seen starting in April. Nevertheless, wage growth is expected to slow down to 12-13% in 2025, compared with 18.3% last year.

— Now we are at a point of regrouping in the labor market: employers are reviewing their payrolls, and young people are rapidly exploring new niches. This is not a generational change, but a change in balance. Moreover, people of different ages are often now involved in different sectors of the economy," summarizes Yulia Makarenko.

Thus, the accelerated wage growth among zoomers and millennials is not a phenomenon of the era, but a recurring wave characteristic of any economy where skills quickly become obsolete and demand shifts towards the young, experts say. The generational gap in the labor market is becoming not so much a conflict as a necessary redistribution of roles. And if some are just entering the game, then others are increasingly watching it from the sidelines.

Izvestia sent requests to the Ministry of Labor and the Ministry of Economic Development, but received no responses at the time of publication.