Ukraine has lost 40% of its working-age population, forcing employers to increase salaries and hire pensioners.

The war has caused a significant decline in the country’s workforce. Currently, around 1.7 million Ukrainians who used to work domestically are now abroad, according to Deputy Minister of Social Policy Daria Marchak.

She highlighted a severe demographic crisis characterized by rapid aging, with the proportion of people aged 65 and older rising from 12% in 1991 to 22% in 2024. Demographers estimate that due to ongoing challenges and threats from the war, Ukraine’s population might fall to 28.9 million by 2051 and to 25.2 million by 2051. Marchak noted that demographic shifts are greatly impacting the labor market, with 74% of employers facing personnel shortages and an average staffing gap of about 15%.

Market experts highlight a critical shortage of practical, skilled workers such as locksmiths, welders, electricians, drivers, mechanics, tailors, and sales managers. The low interest among young people in these professions results in too few new specialists to fill vacancies. Consequently, businesses and the government are competing for skilled workers by increasing salaries, relaxing candidate requirements, and welcoming applicants aged 45 and over, including pensioners and women in traditionally male roles.