Geo-economic fragmentation has led to disruptions in supply chains. It has influenced both national technological progress and the labor market. The article explores the issue of decreasing human capital productivity in economic sectors amidst sanctions and proposes strategies for the development of the national labor market. Using regression and structural analysis at the industry level, the authors propose a new method for assessing productivity based on the sectoral decomposition of human capital in the context of accumulated relevant education and industrial experience. The results have indicated a gap between the growth of gross domestic product and human capital productivity, pointing to a decline in the effectiveness of investments in human capital. This phenomenon is explained by the increase in the proportion of older cohorts in the labor market and a decrease in the influx of young talent. The financial sector emerges as a key sector contributing to growth, whereas high-tech industries show no significant changes. The proposed approach could be applied by regional authorities to analyze changes in productivity to substantiate investments in human capital. Practical recommendations for the development of labor market policies are offered. They include harmonizing strategies for international professional technological cooperation, enhancing competencies among older population cohorts, and implementing human-centric digitalization.