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Businesses in Ukraine are increasingly threatened by a lack of workers, not war.

Effects from the war on small and medium-sized businesses in Ukraine have largely been overcome.

Businesses in Ukraine are increasingly threatened by a lack of workers, not war.

Mobilization in Ukraine has led to the significant draining of personnel from the Ukrainian economy. In addition, more than six million people have fled the war, and many men work in the shadow economy to avoid conscription.

As Bloomberg noted, the problem will only worsen as the Russian invasion continues and the Ukrainian military struggles to maintain its defenses. Ukraine’s economy, which has lost 25% of its output, is at risk of further weakening. The problem also affects ordinary Ukrainians.

The Kyiv Metro decided to reduce the number of trains due to a “significant shortage” of workers. Mykolaiv has already reduced bus services due to the mobilization of drivers, and Kyiv’s road industry lacks up to 30% of necessary workers.

The mobilization has also affected defense enterprises, although they are recognized as critical and can legally protect up to 100% of their employees from being drafted. More than 40 such enterprises appealed to the authorities not to mobilize officially employed persons because this threatens the fulfillment of state defense contracts and negatively affects the state’s defense capability.

 

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