Ukraine’s Labor Market: Skills Shortage Amid High Unemployment in 2025

The Ukrainian labor market has been undergoing complex transformations since the beginning of the full-scale invasion by the Russian Federation in 2022. During this period, economic activity has significantly declined, employment opportunities have decreased, and structural changes have become defining for the entire economy of the country.

This is reported by AgroReview

Reduction in Workforce and Migration

The working-age population in Ukraine has decreased to 15 million people, which is 12% less compared to the pre-war period. These changes have been significantly influenced by large-scale migration processes: about 7 million Ukrainians have left the country, and another 4 million have become internally displaced persons. As a result, the majority of employers (75% as of the end of 2024) reported a severe skills shortage.

Unemployment and Regional Disparities

Alongside the shortage of workers, Ukraine is also experiencing a relatively high level of unemployment. According to official statistics, at the end of 2024, this figure was 13.1%, and by 2025, it is projected to decrease to 11.6%. At the beginning of the year, there were 143,000 registered unemployed, which is 7,000 less than the previous year. At the same time, experts note significant regional differences: in the Eastern and Southern regions, most industrial and agricultural jobs have disappeared, while the West and Center of the country are overwhelmed by an influx of forced migrants.

“As a result, the most vulnerable groups of the population find themselves in the worst situation. The current employment policy, oriented towards pre-war realities, does not take these trends into account, leading to increased inequality and the risk of social unrest,” analysts summarize.