The Ukrainian labour market has been facing a number of challenges in recent years that threaten the country’s economic stability. The main problems are a shortage of skilled workers, rising structural unemployment, and significant labour migration. The shortage of specialists in construction, healthcare, and manufacturing is particularly acute. According to the survey, about 74% of Ukrainian companies are experiencing difficulties in filling jobs. Unfortunately, this situation is exacerbated by high requirements for candidates from employers, inflated salary expectations of young professionals and emotional burnout of employees. Since the outbreak of the war, about 6 million people have moved abroad, which has led to a 40% reduction in the working-age population compared to 2021. As a result, the number of unfilled vacancies is growing, but at the same time, many people are unable to find work due to a lack of relevant skills.
HMH presents the main theses of the analytical report by the Ukrainian Institute for the Future (UIF), an independent think tank specialising in forecasting socio-economic changes and modelling development scenarios in Ukraine. The study is based on the analysis of the latest labour market data and includes recommendations on how to address the existing problems and shortcomings faced by the labour market in the crisis.
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Current strategies for solving staffing problems
Adapting businesses to new realities requires a variety of approaches to solving human resources issues. One of them is to attract young people to work and expand traditional gender boundaries in professions that were previously considered exclusively male. Many companies are opening up internship and training opportunities, which allows them to attract young professionals aged 18 to 25. Women have also begun to be hired more actively for technical positions, such as production line operators.
Integration of veterans and people with disabilities is also a promising approach. Creating programmes for the employment of veterans and people with disabilities not only fills staffing gaps but also promotes the social adaptation of these groups. In addition, companies are actively using digitalisation and robotisation of business processes to improve production efficiency. Automated warehouses, sorting lines and digital technologies reduce the cost of manual labour, which is becoming an important tool for overcoming staff shortages.
Some companies have also turned to hiring foreign migrants, especially in construction, logistics, and agriculture. However, this approach involves certain difficulties related to the need to provide housing and adaptation of foreign workers to the Ukrainian labour market. In addition, regulatory procedures need to be eased in order to attract labour migrants on a large scale.
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Promising strategies to overcome the shortage of specialists in the labour market
To overcome the problem of staff shortages, analysts suggest closer cooperation between businesses and educational institutions. Investments in dual education programmes, the creation of training and practical centres and qualification centres will help train young professionals with the necessary skills at the stage of study. In addition, it is proposed to reform the vocational education system by establishing higher vocational schools that will provide higher education with a practical focus, which will increase the prestige of working professions and attract young people.
To help businesses retain key employees during mobilisation, experts also propose revising the electronic booking system. This allows employers to protect employees from mobilisation for a certain period, while ensuring the stable operation of companies, which is important for the national economy.
Lowering the age threshold for entering the labour market to 16 years could also be a useful solution. Such an approach would allow young people to gain practical experience, financial independence, and increase their interest in vocational education. It would also encourage young people to enter the labour force earlier, which would help to reduce the labour shortage.
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Recommendations for policymakers and government officials
To overcome the labour market crisis, comprehensive policy responses are needed. This includes the adoption of laws that will promote professional development and attract young people to blue-collar jobs, as well as improving the mechanisms for booking workers to prevent critical shortages. It is also significant to create opportunities for upskilling people who are unable to find work due to a lack of relevant skills. In addition, the state can facilitate the adaptation of veterans and people with disabilities by partnering with the private sector to integrate them into the economy.
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