How does the Ukrainian labor market look in the fourth year of the war?

At present, more than 70% of Ukrainian businesses are experiencing a notable personnel shortage. Contributing factors include not just the mobilization of conscripts but also internal migration and the labor outflow abroad.

Analysts indicate that this gap is driving companies to consider new employment models. Businesses are being forced to invest in salary increases (88%), employee development (46%), and shorter work hours. To retain their staff, employers are designing social packages that encompass medical insurance, bonuses, psychological support, and even reimbursements for utilities and internet services.

In the production and services sectors, the personnel shortage could reach 30-40% compared to pre-war levels. This situation intensifies the structural crisis across Ukraine’s regions, especially in the east and south, where production is declining, and infrastructure is deteriorating. In reaction, companies are evolving by digitalizing processes, encouraging women to enter certain traditionally male-dominated fields, and creating job opportunities for retirees and young workers. The IT sector remains robust, with a growth rate of 5-10%, successfully drawing in remote specialists from overseas.

Predictions for 2025 include:

1. There will be continued personnel shortages, but with businesses increasing salary investments (+10-20%), implementing flexible work arrangements, and developing retraining and employee advancement initiatives.
2. Small and medium-sized enterprises accelerating their digitalization and partially automating processes.
3. An ongoing emphasis on equal participation of women and support for retirees.