This information is detailed in a joint report on economic policy priorities prepared by the Ministry of Economy and the Ministry of Finance.
Key Findings from the Report:
Inactive Workforce:
- About half of the labor force in Ukraine is currently inactive, meaning they are not working and not seeking employment.
- Nearly three-quarters of employers in the country report a shortage of personnel.
Impact of Military Actions and Population Reduction:
- The decrease in the labor force is attributed to ongoing military actions and a reduction in the population.
- The rapid aging and overall reduction of the population, which were pre-war issues, have further complicated the situation.
Projections for the Future:
- It is projected that returning refugees will increase the labor force to between 16.0 and 16.4 million people by 2026.
- Despite this increase, the projected labor force will still be 0.9 to 1.3 million less than the pre-war peak of 17.3 million people in 2021.
Need for Labor Force Attraction and Reforms:
- The report underscores the need to attract more labor force, stimulate the return of refugees, and increase labor force participation, especially among women, to support economic recovery.
- Ukraine is committed to implementing necessary reforms to address these issues but also requires assistance in providing social services and employment opportunities to attract more workers.
Additional Insights:
- According to an April study by the European Business Association in partnership with labor market analytics expert Tetyana Pashkina, nearly 74% of employers in Ukraine are experiencing a shortage of personnel.
The findings highlight the urgent need for strategic measures to bolster the labor force and support the country's economic recovery amidst ongoing challenges.
