Ukraine Has Lost 40% of Its Working Population: How the Labor Market and Salaries Are Changing

As a result of the full-scale war, Ukraine has lost about 40% of its working population. According to Daria Marchak, Deputy Minister of Social Policy, over 1.7 million Ukrainians who were recently employed in the country are now outside its borders. This trend significantly impacts the structure of the labor market.

This is reported by AgroReview

Demographic Crisis and Aging Population

Ukraine is experiencing a deep demographic crisis accompanied by rapid aging of the population. In 1991, the share of people aged 65 and older was 12%, but by 2024, this figure is expected to rise to 22%. Due to the war, demographic forecasts are grim: by 2041, the population may decrease to 28.9 million, and by 2051, to 25.2 million.

“Demographics are greatly changing the labor market. 74% of employers feel a shortage of personnel, and the average deficit in companies is about 15% of the workforce,” emphasized Marchak.

Labor Shortage and Business Adaptation

The labor market is facing a severe shortage of specialists with practical skills. There is particularly high demand for locksmiths, welders, electricians, drivers, mechanics, tailors, and sales managers. Young people are hesitant to choose these professions, leading to an insufficient number of new specialists to meet employers’ needs. In this situation, companies and the state are forced to compete for qualified workers by raising salary levels.

Employers are also revising their requirements for candidates for in-demand positions. There is an increasing openness to candidates aged 45 and older, retirees (the number of relevant vacancies has increased by 33% compared to 2023), as well as women in traditionally “male” positions. Opportunities for employing people with disabilities, veterans, and individuals without work experience are expanding, indicating a rise in inclusion in the labor market.