Worker shortage hits Ukraine: firms struggle to fill growing job openings

Ukrainian companies are encountering significant difficulties in recruiting
employees, a trend underscored by a decline in job seeker numbers, Ukrainian
National Bank (NBU) reported  on April 4.

Despite an increase in job listings early in 2024, firms are struggling to fill both skilled and unskilled positions, a situation exacerbated by various economic and social factors.
The growing number of new job vacancies on job search websites indicates a steady demand for labor in early 2024, the report said. However, business surveys reveal an uptick in the number of enterprises facing hurdles in securing both skilled and unskilled
workers, contributing to the decrease in job seekers.
This trend may stem from a combination of factors, including employment resurgence and constrained labor supply, partly due to military conscription and ongoing migration. The number of migrants outside Ukraine increased by almost 150,000 (or 2%) to 6.5 million people since the beginning of 2024, as of March 14, the UN data suggests.
With a widening gap between labor demand and supply, pressure for wage hikes is mounting among both job seekers and employers. The recent hike in the minimum wage at the year’s onset has further fueled this trend. Increased wages, substantial budget allocations for military personnel salaries, pension adjustments (since March), and elevated payments linked to the minimum wage have bolstered household incomes, thereby shoring up consumer demand.
The Economy Ministry estimates foresee a 67% rise in Ukraine’s employment rate by 2032. Accordingly, Ukraine’s labor market development strategy must address the growing presence of vulnerable groups, including displaced individuals, persons with disabilities, and seniors.
The Ukrainian Confederation of Employers has developed an employment guide for persons with disabilities, compiling practical advice on compliance with legislation regarding their inclusion in the labor market.
Employers cite various concerns hindering their willingness to hire veterans, the Confederation said. They fear that employing veterans will lead to the difficult emotional
well-being of veterans (79%), substance abuse (25%), and conflict-prone behavior (24%).
The NBU predicts that one in seven Ukrainians will remain unemployed in 2025.

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