The HoReCa Sector in Ukraine: Labor Shortage, Impact of the Energy Crisis, and Business Adaptation

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The HoReCa Sector in Ukraine: Labor Shortage, Impact of the Energy Crisis, and Business Adaptation

The HoReCa sector in Ukraine is facing serious challenges, including a shortage of workers, rising costs, and the impact of the energy crisis. This is evidenced by the results of a survey among employees and business owners conducted by the OLX Work platform.

This is reported by Finway

Impact of the Energy Crisis on Earnings and Working Conditions

About one-third of HoReCa employees reported that their income level has remained unchanged over the past year. 25% of respondents noted a moderate increase in salaries, while 17% reported a significant rise in earnings. At the same time, 11% of survey participants stated that they experienced a noticeable decrease in wages, and another 6% indicated a slight reduction.

Winter disruptions in electricity and water supply in 2025-2026 significantly affected the operations of establishments. More than half of those surveyed (55%) confirmed changes in working conditions due to these factors, while 19% felt no impact, and 16% were unable to assess the situation.

The most common consequences of the energy crisis included increased physical strain (52%), as employees had to work in cold premises or manually during power outages. 45% of respondents reported heightened anxiety due to instability, 39% noted a decrease in customer flow, and 36% mentioned an unstable work schedule. Other consequences included worsened safety (30%), a reduction in the number of shifts (27%), and decreased income (27%).

“More than half (52%) noted that work has become more exhausting due to the lack of light, cold in the premises, or the need to perform operations manually.”

Labor Shortage and Employee Plans

Currently, 31% of HoReCa employees have not yet determined their future career steps, while 29% do not plan to change their field of activity. At the same time, 24% are considering the possibility of transitioning to another industry in the next year or two, and 16% intend to leave HoReCa within the next six months.

Among the main reasons for leaving, employees cite high levels of stress and emotional burnout (46%), dissatisfaction with wages (44%), lack of development prospects (29%), inconvenient schedules (28%), unsatisfactory conditions (25%), and a tense atmosphere in the team (22%). Job satisfaction remains low: half of the respondents could not define their attitude towards their current position, 15% are completely dissatisfied, and 13% are rather dissatisfied.

Employers’ Position and Adaptation Strategies

Despite the challenging conditions, most HoReCa establishments continue to operate: 64% are functioning normally, 17% with restrictions, and 9% have had to suspend operations in the last three months due to rising costs and the need to ensure autonomy.

The most serious problem in the industry is the labor shortage, as reported by 82% of employers. 73% noted rising costs for energy resources and equipment, as well as high salary expectations from candidates (27%). Additional challenges include a decrease in the average check and customer outflow. The most sought-after positions are chefs, their assistants, waiters, bartenders, and technical staff.

To enhance resilience to power outages, 71% of establishments have invested in generators, batteries, and other equipment, while 29% have optimized their structure and work processes, and 2% temporarily suspend operations during outages.

As steps to improve the situation, respondents suggest tax incentives for small and medium-sized businesses (75%), government support to enhance autonomy (75%), as well as programs for accessible loans and grants and job preservation (50%).

HoReCa in Ukraine / Photo: Freepik