Russian industries, excluding the defense sector, are experiencing a decline, raising concerns about job security and economic stability. Despite official reports of industrial production growth, a closer look reveals a concerning trend of “managed cooling” in civilian sectors.

The automotive industry and the production of essential building materials like cement are facing significant setbacks. Reader comments confirm layoffs, reduced production, limited orders, and transitions to shorter workweeks, with stagnant salaries and forced leave becoming common.

The Analytical Center of CMAKE indicates an average output decline of 0.3% per month since the beginning of the year when excluding the defense industry. This decline is exacerbated by a drop in effective demand, even as the Central Bank and Ministry of Industry and Trade report growth.

Workers are increasingly seeking opportunities in marketplaces to sell goods from Chinese industries, highlighting a potential issue in management rather than worker skill or production quality. The situation is further complicated by the decreasing capitalization of Gazprom compared to a Chinese toy manufacturer, signaling a shift in global energy demand.

Members of the independent trade union “New Labor” point out that self-employment opportunities cannot fully compensate for industrial job losses. There are concerns about the future of Russian factories, as major employers like GAZ and AVTOVAZ resort to four-day workweeks to avoid layoffs, despite unprecedented inventory buildups.