Ukraine’s labor shortage has reached a new record for industrial businesses. According to a June survey by the Institute for Economic Research and Policy Consulting, 71% of industrial enterprises called the lack of workers the key obstacle to increasing production.
The survey covered 471 industrial companies. The problem is most acute in Kirovohrad, Chernivtsi, Lviv, Cherkasy, Dnipropetrovsk, Poltava, Zhytomyr and Zaporizhzhia regions, where more than 80% of companies reported workforce shortages.
A contradictory labor market
The picture is not entirely linear. Companies say it has become somewhat easier to find qualified workers: the share of businesses reporting difficulties fell from 60.6% in May to 46.3% in June. At the same time, 30.4% still reported problems with finding unqualified workers.
Despite the shortage, hiring plans remain cautious. Only 4.6% of enterprises expect to increase staff in the next three to four months, while only 2% may send workers on forced leave.
Other barriers for production
Labor is not the only constraint. Half of surveyed companies complained about rising prices for raw materials, materials and goods. Dangerous working conditions remained a serious factor for 41% of respondents, while interruptions in electricity, water or heat supply affected 19%.
For investors, the survey confirms that Ukraine’s industrial recovery depends not only on demand and capital, but also on human resources. Training, regional mobility, automation and safer workplaces will become part of the country’s production strategy.
