In Ukraine, there is an exacerbation of the labor shortage problem, caused by a demographic crisis, population decline, and mass migration. The greatest difficulties in employment are faced by internally displaced persons (IDPs), people with disabilities, Ukrainians aged 50 and older, as well as women with young children.
This is reported by Finway
Deputy Minister of Social Policy Daria Marchak noted in her analysis for Forbes that over the years of war, the working-age population in Ukraine has decreased by more than 25%. The main factors contributing to this are migration, mobilization, and natural aging of the population.
According to data from the Institute of Demography, the current birth rate stands at a critically low 0.9 children per woman, while at least 2.2 is needed for generational renewal. In this context, businesses must adapt to new realities, particularly the gradual aging of the workforce, the decrease in the number of young workers, and the reorientation towards new labor reserves.
Challenges for the Labor Market
Marchak pointed out that there is significant potential for the workforce among the economically active population that is currently not engaged in the labor market. The main groups facing difficulties include:
- internally displaced persons;
- people with disabilities;
- experienced workers aged 50+;
- students, retirees, and veterans;
- young mothers with small children.
The employment issues for these categories of citizens are the most acute. The reasons for this lie not only in the real gap between workers’ skills and employers’ needs but also in deeply rooted stereotypes regarding age, health status, or social standing.
“We need to change our approach to hiring: train HR specialists to recognize not limitations, but opportunities”
Marchak’s call emphasizes the need to overcome barriers that arise from biased attitudes towards older people or those with disabilities, who are often mistakenly considered “unpromising.” According to her, the key to restoring labor potential lies in retraining and upskilling programs tailored to the specific needs of each region. It is important not only to provide training but also to equip individuals with skills that are genuinely needed in the local market.
The Future of the Labor Market
Without the active involvement of all segments of the population in economic activities, the country’s recovery after the war will become seriously complicated. The Ministry of Social Policy emphasizes that the future of the labor market must be focused on inclusivity, adaptability, and flexibility, which is both a necessity of the time and an opportunity to renew labor strategies across all sectors of the economy.