Ukraine is facing a significant challenge of human capital deficit and the need for urgent productivity growth. That’s why the term “Silver Economy” is being heard more often. The “Silver Economy” is a sector of the economy focused on meeting the needs of older people and engaging them in active economic activity. According to economist Andriy Deliha, the issue of preserving and developing labor potential is becoming fundamental to the stability of our state.
“In general, the issue of human capital for the country’s economy, and for the country’s future, is now perhaps the most important. This is the source of our stability and the defense of our future”.
The search for internal reserves forces businesses and the state to pay attention to the demographic group of people over 50 years old. Global experience shows a high level of involvement of this category in economic processes, but in Ukraine, the level of their activity remains critically low.
Professional Experience vs. Systemic Passivity of the Market
The modern labor market requires specialists who are already in Ukraine and have the necessary competencies. Svitlana Pilneva, Director of the “People and Culture” department at JTI Ukraine, explains the reasons for business interest in this topic:
“The category of people 50+, it’s no less important. And these people – they are already in Ukraine. They have professional experience, they have knowledge, and at the same time, they are not as involved in active work in the market as they should be”.
A study initiated by the company revealed a significant gap between employers’ declarations and real hiring practices. Companies often recognize the reliability and responsibility of mature workers, but at the final selection stage, they continue to prefer younger candidates. Maria Krymova, a leading researcher at the Ukrainian Center for Social Reforms, confirms this paradox
“Practically none of them say that age is a problem when hiring personnel. But at the same time, for some reason, the question arises, candidates aged 50+, they much less often reach the final decision”.
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Technological Threshold and Cognitive Flexibility
One of the most significant barriers to employment for older candidates is the level of digital literacy and adaptability. These skills have ceased to be an additional advantage and have become a necessary minimum. Maria Krymova emphasizes the change in the status of technical competencies:
“Digital skills have stopped being an advantage today, they have become a basic threshold for entry, and if there are doubts about this threshold at the start regarding a worker, they are not hired”.
Employers consider hiring as a long-term investment and often doubt its feasibility when working with people of pre-retirement age. Oleksiy Myroshnychenko, Head of the Confederation of Employers of Ukraine, highlights the complexity of production processes
“An important category, but it consists, in my opinion, of three main things. These are investments, technologies, and qualifications”.
The economic feasibility of such investments often relies on deep social fears. Tina Nikolova, a representative of the charitable foundation “Zhittelyub”, notes
“Our young generation is very afraid of growing up, because it does not have a positive horizon of realization after a certain age”.
Economic Interests and the Role of State Institutions
The State Employment Service records a change in the structure of job seekers, where the share of people over 50 years old is steadily growing. Valentyna Rybalko, Deputy Director of the agency, emphasizes the inevitability of changes
“And in conditions of labor shortages, we can no longer afford to lose human capital just because of age, just because of these stereotypes”.
The integration of the silver economy requires a review of corporate cultures and adaptation to new global trends. Ella Libanova, Director of the Institute of Demography, summarizes this process
“The silver economy is not our invention. This is a world that has faced this. Faced with the fact that a woman does not want to have many children. Accordingly, this pyramid is inverted”.
Joint efforts of the state, business, and expert environment will allow transforming age experience into an effective tool for restoring the Ukrainian economy.
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