The shortage of personnel is a key factor driving economic change in Ukraine.

Ruslan Shostak, the president of TERWIN Corporation and founder of EVA and VARUS, asserts that prior to the full-scale Russian invasion in 2022, Ukraine had roughly 17.3 million able-bodied citizens. Presently, about 4.8 million people have left the civilian labor market due to military service, employment in the defense sector, mobilization evasion, or relocation abroad.

“Currently, the personnel shortage has become one of the main driving forces of economic change in the country. In particular, the unprecedented growth of wages,” the expert stated.

For instance, in 2019 the average salary in Ukraine was $385, but by 2025 it has risen to $542. Shostak believes that living in a less densely populated country with a salary of $2,000 is preferable to the former scenario. He points to Luxembourg, which has a population of 660,000 and an average salary of €5,000-6,000; the UAE, with a population of 10 million and salaries ranging from €6,000-7,000; and Singapore, with its 5.6 million residents earning €4,000-5,000, as exemplary cases.

Shostak envisions Ukraine evolving into a high-tech, export-driven nation with a robust industrial sector, and that the country’s focus will shift from its population size to the quality of life its citizens experience.