How the war affected the wages of Ukrainians

How the war affected the wages of Ukrainians

During the war, the labor market underwent changes. In particular, the demand outweighs the supply, and most employers have kept the salaries of employees unchanged during the year, reports finance.ua.

 

 More than 53% of Ukrainians lost their jobs in March 2022 due to the fact that the company in which they worked ceased its activities.

 

 Currently, unemployment exceeds 30%, but the State Statistics Service does not keep statistics, as some territories of Ukraine are temporarily occupied, so the agency cannot make accurate calculations.

 

 At the beginning of January of this year, wages returned to the pre-war level, according to Work.ua data, however, taking into account inflation at the level of 26%, real wages decreased significantly.

 

 Also, in 2023, businesses expect the economy to recover, however, most enterprises do not plan to hire additional workers, and the significant level of unemployment does not encourage salary increases:

 

 73% of business owners talk about salary increases,

 

 26% will leave them at the current level.

 

 Industries were restored unevenly by region due to the occupation of territories and the conduct of hostilities. The fastest process happened in the regions located in the western part of the country — Lviv and Ivano-Frankivsk. The greatest demand was for specialists in the service sector (trade, logistics, restaurants).

 

 According to experts, a significant challenge during the reconstruction of Ukraine will be the retraining of workers and the integration into the labor market of veterans, displaced persons (IDPs) and returning refugees.

 

 At the same time, employment centers offer Ukrainians various retraining programs, thus providing an opportunity to retrain and acquire a new specialty that is in demand on the market. Also, the State Employment Center together with the Ministry of Economy launched the "National Personnel Reserve" program, and the government plans to expand the public works program (however, not many people are currently involved in it).



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During the war, the labor market underwent changes. In particular, the demand outweighs the supply, and most employers have kept the salaries of employees unchanged during the year, reports finance.ua.

 

 More than 53% of Ukrainians lost their jobs in March 2022 due to the fact that the company in which they worked ceased its activities.

 

 Currently, unemployment exceeds 30%, but the State Statistics Service does not keep statistics, as some territories of Ukraine are temporarily occupied, so the agency cannot make accurate calculations.

 

 At the beginning of January of this year, wages returned to the pre-war level, according to Work.ua data, however, taking into account inflation at the level of 26%, real wages decreased significantly.

 

 Also, in 2023, businesses expect the economy to recover, however, most enterprises do not plan to hire additional workers, and the significant level of unemployment does not encourage salary increases:

 

 73% of business owners talk about salary increases,

 

 26% will leave them at the current level.

 

 Industries were restored unevenly by region due to the occupation of territories and the conduct of hostilities. The fastest process happened in the regions located in the western part of the country — Lviv and Ivano-Frankivsk. The greatest demand was for specialists in the service sector (trade, logistics, restaurants).

 

 According to experts, a significant challenge during the reconstruction of Ukraine will be the retraining of workers and the integration into the labor market of veterans, displaced persons (IDPs) and returning refugees.

 

 At the same time, employment centers offer Ukrainians various retraining programs, thus providing an opportunity to retrain and acquire a new specialty that is in demand on the market. Also, the State Employment Center together with the Ministry of Economy launched the "National Personnel Reserve" program, and the government plans to expand the public works program (however, not many people are currently involved in it).