Ukraine’s labour market is experiencing acute challenges, including a critical shortage of qualified personnel, persistent mismatches between job seekers’ qualifications and employer requirements, and significant pressures from war, mobilisation and migration.
The government’s response is multifaceted, focusing on increasing labour market participation, modernising education and training, and aligning policies with European Union standards. The Employment Strategy 2030, currently under development, aims to address these challenges through comprehensive reforms, digitalisation, and the promotion of inclusive growth.
Current Problems of the Labour Market (2024–Q3 2025)
- Acute Staff Shortages and Migration Pressures
As of July 2025, approximately 5.6 million Ukrainians remain abroad, with a net migration outflow of 200,000 people in 2025. 60% of employers report a staffing crisis, with the most acute shortages in skilled trades (63%) and middle-level staff (35%), particularly in the construction sector. Ongoing migration and mobilisation have reduced the available workforce, with the unemployment rate projected at 10.9% in 2025.
There is a pronounced mismatch between labour supply and demand. While the number of new CVs increased by 27.4% year-on-year in Q2 2025, new vacancies grew by only 5.4%. Most job seekers prefer managerial or administrative roles, whereas employers are seeking skilled people, drivers, and junior medical personnel. Regional imbalances persist, with candidates concentrated in safer areas.
- Wage and Inflation Dynamics
Average nominal wages grew by 19.0% year-on-year in Q1 2025, but real wage growth slowed to 5.2%. Rising wage costs contribute to underlying inflation, with core inflation at 12.1% year-on-year in June 2025.
Intensified attacks and destruction of infrastructure have constrained economic activity, with air and drone attacks increasing by 152% year-on-year in Q2 2025, further complicating workforce planning and hiring.
- Recruitment Difficulties and Gender Issues
Over a third of employers struggle to fill vacancies, with large enterprises facing even greater challenges. Employers have responded by offering additional benefits and by hiring more students, people with disabilities, and veterans. The ongoing war has reshaped workforce gender dynamics with women comprising 47% of new hires in 2023, including roles traditionally dominated by men. However, the wage gap persists, with women earning just 69% of men’s average salary.
- Inclusion of Vulnerable Groups
Internally displaced persons (IDPs), people with disabilities and veterans have seen some progress in employment, but many of them remain outside the labour force. Employers are willing to hire people from these groups but often require financial support and workplace adaptation.
State Instruments and Mechanisms for Human Resource Development
- Strategic Framework and Governance
The Ukraine Facility Plan (2024–2027) serves as the main recovery and modernisation framework, with a dedicated Human Capital chapter and cross-cutting priorities on digitalisation and EU alignment. The Plan outlines a 10-year vision for social infrastructure and human capital development.
Key institutions involved are:
o Ministry of Education and Science (general, vocational, and higher education)
o Ministry of Economy (employment and labour market)
o Ministry of Social Policy (social inclusion)
o National Qualifications Agency (qualifications system and skills validation).
- Education and Skills Development
State-funded education provides free or subsidised access at all levels. As of January 2025, 34.5% of higher education students studied at public expense with allocations prioritising fields such as education, engineering, IT, and healthcare. Voucher-based mechanisms support adult education, reskilling and upskilling, particularly for vulnerable groups. Reforms focus on updating curricula, decentralising management and aligning standards with labour market needs.
- Healthcare and Social Protection Measures
Ukraine’s health system, under severe strain due to war, continues to serve millions, including IDPs and refugees. Over 30 million Ukrainians remain registered with primary care providers, and more than 90% of public facilities are connected to the eHealth system. The National Health System Development Strategy through 2030 emphasises universal access, efficiency, and support for the mature workforce. The health sector also plays a key role in social protection and inclusion, particularly for vulnerable groups.
- Labour Market Activation and Training
Nearly half of Ukraine’s population aged 15 and older is economically inactive, representing a significant labour reserve. The Ministry of Economy is prioritising measures to encourage participation among homemakers, youth, and those affected by psychological stress. Active labour market programmes, including free training for women, veterans, and displaced people, are being expanded.
- Assessment of Outcomes and Effectiveness
Ukraine’s human resource development (HRD) policies are increasingly guided by structured evaluation frameworks, combining quantitative and qualitative metrics such as employment rates, skills mismatch indicators, employer satisfaction, and inclusion of vulnerable groups. A labour market and skills needs assessment highlighted high demand for digital and technical skills, persistent
recruitment difficulties and the need for stronger cooperation between employers and vocational education institutions. Corporate training and dual education models are being promoted to address immediate skill gaps and align training with market needs.
Limitations of the Current Framework
- Outdated Labour Legislation
Ukraine’s labour legislation remains rooted in the Soviet-era Labour Code of 1971, hindering the development of flexible employment models and alignment with EU standards. Comprehensive reform is underway but requires parliamentary support.
- Limited Digital Integration
The labour market infrastructure lacks a unified digital system, resulting in fragmented data management and inefficient coordination. Paper-based systems remain prevalent, slowing job matching and policy implementation. A centralised digital platform is essential for streamlining operations and improving responsiveness.
- Absence of a Unified Employment Strategy
The lack of a comprehensive, coordinated employment strategy leads to fragmented policy implementation and suboptimal resource allocation. The forthcoming national employment strategy aims to synchronise labour market policies and support human capital development.
Employment Strategy 2030: Vision and Development
- Research and Stakeholder Engagement
The Employment Strategy 2030 is being developed through a comprehensive analysis of labour market trends and open consultations with stakeholders, including government bodies, employers, trade unions,
NGOs and international partners. The strategy’s formulation is evidence-based and inclusive.
- Strategic Goals and Tasks
The strategy focuses on:
- Increasing Economic Activity: Reducing barriers for vulnerable groups, supporting entrepreneurship, reducing informal employment, modernising education and training, promoting return migration, digitalising employment services and harmonising legislation with EU standards.
- Overcoming Labour Market Imbalances: Aligning training with market needs, developing retraining systems and expanding partnerships between educational institutions and businesses.
- Strengthening Institutional Capacity and Digitalisation: Modernising the State Employment Service, improving coordination and ensuring transparency.
- Integrating International Standards: Adapting legislation to ILO conventions and EU standards, preventing discrimination in hiring.
Strategic Directions and Recommendations for Improvement
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Strategic Priority
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Recommendation
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Ensuring policy coherence and integration
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To promote alignment of HRD policies across sectors and administrative levels.
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Securing sustainable financing
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To enhance long-term financial planning and resource allocation for scalable HRD initiatives.
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Advancing digital transformation
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To strengthen digital infrastructure and adopt data analytics for evidence-based governance.
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Building institutional capacity
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To invest in professional development of HRD institutions and personnel.
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Mainstreaming equity and inclusion
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To integrate inclusive approaches to ensure equal access for all vulnerable groups.
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Fostering stakeholder engagement
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To encourage participation of employers, business associations and civil society in policymaking.
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Conclusion
Ukraine’s approach to human resource development is evolving rapidly in response to unprecedented challenges. The government’s strategic focus on modernising education, digitalising employment services and aligning with EU standards is essential for building a resilient, inclusive and competitive workforce. The Employment Strategy 2030, developed through broad stakeholder engagement, is poised to transform labour market challenges into opportunities for sustainable economic growth.
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References:
National Bank of Ukraine, Helvetas, European Business Association, Ministry of Economy of Ukraine, World Health Organization, National Health Service of Ukraine, Office of Effective Regulation, and others (see original presentation for full source list).
