Overview
The European Union is providing €3.5 million to finance a new employment and labor reform project in Ukraine, implemented in partnership with the International Labour Organization (ILO).
The agreement was signed by EU Ambassador Katarina Maternova and ILO Director in Ukraine Aida Lindmeier, marking another step in strengthening Ukraine’s socio-economic resilience amid ongoing recovery and European integration efforts.
The total project budget amounts to €3.8 million, and implementation will continue until October 14, 2028.
Purpose and Scope of the Project
The program focuses on modernizing Ukraine’s labor market and preparing it for deeper integration with EU employment and social standards. Key objectives include:
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Supporting the adoption of a reformed Labor Code, aligned with EU acquis and international conventions.
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Developing a National Employment Strategy to reduce unemployment and stimulate workforce participation.
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Strengthening the State Employment Service and expanding its capacity to match workers with available jobs.
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Promoting the EU Youth Guarantee model in Ukraine to support young people entering the labor market.
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Enhancing the effectiveness of the National Tripartite Socio-Economic Council, ensuring constructive dialogue between government, employers, and trade unions.
Expected Impact
The initiative seeks to address Ukraine’s labor shortage of roughly 8.6–8.7 million jobs, which has deepened since the start of the full-scale war.
By reforming labor legislation and improving public employment services, Ukraine aims to create a more flexible, inclusive, and productive labor market that attracts investment and facilitates post-war reconstruction.
EU Ambassador Katarina Maternova emphasized that the contribution will help “breathe new life into tripartite consultations” and enhance the capacity of social partners to jointly manage reforms.
According to ILO Director Aida Lindmeier, adopting the new Labor Code will be a “foundation for rebuilding the workforce and addressing structural unemployment.”
National Implementation and Strategic Link
The Ministry of Economy of Ukraine will play a central role in executing the project and is currently developing a comprehensive Employment Strategy focused on:
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Reducing unemployment rates.
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Encouraging broader participation of women, youth, and displaced persons.
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Stimulating job creation through reskilling, vocational education, and private-sector partnerships.
The project complements Ukraine’s broader EU accession agenda, ensuring the country’s labor policies are compatible with European social and economic frameworks.
Outlook
The EU–ILO partnership underscores Europe’s commitment to supporting Ukraine’s human capital development alongside infrastructure and defense assistance.
By improving employment services, reforming labor law, and aligning with EU standards, Ukraine will be better positioned to attract investors, retain skilled workers, and ensure fair labor conditions during reconstruction.
The program’s success could serve as a model for post-war social recovery — shifting Ukraine’s labor system from survival to sustainable growth.
