SECTORAL DISTORTIONS OF THE LABOUR MARKET IN UKRAINE: ANALYSIS AND PROSPECTS

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Published: Mar 31, 2025

  Eduard Bohdan

  Stanislav Kotenko

Abstract

The labour market in Ukraine has undergone significant changes in recent years, driven by both pre-war economic processes and the full-scale war that has been ongoing since 2022. Key challenges include shifts in the employment structure, intensified migration processes, sectoral imbalances and the impact of economic instability on socio-labour relations. Research on this topic is highly relevant as it allows for an assessment of the crisis phenomena affecting the labour market and the identification of possible ways to stabilise and develop it. Another important aspect is the analysis of regional employment characteristics and the identification of the most vulnerable population groups facing difficulties in finding employment. Practical implications. The present study is devoted to the analysis of sectoral imbalances in Ukraine's labour market, which have emerged as a consequence of economic, social, and political transformations that have transpired in the context of the pre-war era and the ongoing war. A particular emphasis is placed on sectoral imbalances, employment levels, and migration processes, with an investigation into their impact on the labour market. Methodology. The research is grounded in a comprehensive analysis of statistical data from the State Statistics Service of Ukraine, the State Employment Service, official reports, and academic publications. A range of analytical methods are employed to assess labour market changes, including comparative analysis, structural analysis and statistical approaches. Research objective. The primary objective of this study is to identify key trends and imbalances in Ukraine's labour market, forecast its future development, and formulate recommendations to mitigate the negative impact of war and economic factors on employment. Conclusions. The study confirms the presence of significant sectoral distortions in Ukraine's labour market, which have been exacerbated by the war. The research has identified that economic instability, mobilisation, forced migration, and infrastructure destruction have resulted in alterations to the employment structure. There is an increasing demand for blue-collar workers, IT specialists, healthcare professionals, and the military-industrial sector. Concurrently, conventional industries such as trade and services have experienced substantial losses. The document puts forward a series of recommendations for adapting the labour market to contemporary challenges, including the establishment of retraining programs, support for small businesses, digitalization of employment, and stimulation of innovative economic sectors.

How to Cite

Bohdan, E., & Kotenko, S. (2025). SECTORAL DISTORTIONS OF THE LABOUR MARKET IN UKRAINE: ANALYSIS AND PROSPECTS . Economics & Education, 10(1), 59-66. https://doi.org/10.30525/2500-946X/2025-1-8
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Keywords

labour market, employment, unemployment, distortions, war, salary

References

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