Russia has created more than half a million new jobs in its defence sector to meet soaring demand on the battlefield, President Vladimir Putin said on Friday.

The Kremlin has thrown massive resources at its full-scale assault on Ukraine, with the defence sector accounting for much of the sanction-hit economy's growth.

"In the last year and a half alone, 520,000 new jobs have been created in defence," Putin told a political forum with defence workers in the western city of Tula.

"In order to be successful on the battlefield today, it is necessary to react quickly and adequately to what is happening there," Putin said.

"So whoever does it all faster, wins," he said.

After months of combat that has failed to yield major territorial gains for either Russia or Ukraine, Moscow is throwing more manpower into the conflict and ramping up arms production.

Last year, it unveiled plans for a massive 68-percent hike in spending on the military -- more than outlays for education, environmental protection and healthcare spending combined.

The spending increase has fuelled demand in Russia's economy, drawing workers away from labour-starved civilian industries and pushing up inflation.

Unemployment has fallen to a record low and several non-defence sectors have reported a chronic shortage of workers since Russia launched its military campaign against Ukraine almost two years ago.