Mass Layoffs and Reductions Expected in Ukraine’s Labor Market

According to a survey by the National Bank of Ukraine, no significant changes in employment levels are expected in the country’s labor market in the near future. In the main sectors of the economy, substantial increases in the number of job vacancies or large-scale layoffs are not anticipated; however, some enterprises plan to review their workforce numbers. Moreover, these intentions are predominantly negative, as in all key industries, layoffs of employees will occur more frequently than the hiring of new workers.

This is reported by AgroReview

“Overall, the assessment of employment has somewhat improved,” — noted the National Bank.

Distribution of Employment and Layoff Plans Across Different Sectors

Among service sector enterprises, about 78% plan to maintain their current workforce, while only 8% intend to hire new employees. At the same time, 14% of companies plan to lay off workers, which is nearly double the number of those who plan to expand their staff.

In the industrial sector, the situation is similar: 79% of enterprises will keep their number of employees unchanged, 10% plan to hire new staff, and 11% will lay off employees. This slightly exceeds the number of companies planning to increase their workforce.

As for the trade sector, 86% of enterprises intend to maintain their current level of employees, 6% will hire new staff, and 8% will lay off workers. This indicates a weak level of layoffs in this industry.

Characteristics of the Construction Sector

At the same time, the construction sector is the only one where more companies plan to hire new workers than to lay them off — 19% versus 7%. Most enterprises — 74% — will keep their current staff unchanged.

Thus, the situation in Ukraine’s labor market remains tense, with a trend towards layoffs in most sectors, but with a positive shift in the construction sector, where the number of job vacancies is increasing.