The Ukrainian labor market has always been a field of constant change and challenges, but the Russian invasion in February 2022 triggered a significant crisis. Mass emigration and internal displacement of the population, physical destruction and relocation of enterprises, job cuts, and the outflow of workers to serve in the Armed Forces are just a part of the new reality.
However, despite it all, the labor market continues to adapt and transform. SUN ONE presents with an analysis of the past six months, which will help you understand its current state and explore trends and prospects.
Unemployment Rate
According to data from the State Employment Service of Ukraine, as published by the National Bank of Ukraine (NBU), in July 2023, a historically minimal level of official unemployment in Ukraine was recorded, with just 108.7 thousand individuals. To provide context, in 2022, this figure stood at 278.6 thousand individuals.
However, it is worth noting that such a difference is somewhat illusory, as the statistics are provided without taking into account the occupied territories and those who have emigrated due to the conflict. Additionally, many individuals have stopped registering their status due to shortened benefit terms and the requirement to provide military registration documents (in the case of males). According to NBU estimates, the actual unemployment situation hovers around 4.2–4.8 million individuals.
Nevertheless, there are positive developments that contribute to workforce employment:
- Gradual business recovery;
- An increase in the number of jobs;
- Government retraining programs.
Features of Personnel Recruitment in 2023
Olesia Kreminska, Head of the Business Development and Project Implementation Department at SUN ONE, provided her assessment of the current situation. Here are the key points characterizing the current year:
- Sectoral Distribution of Personnel. The majority of job vacancies currently lie within the food retail sector. Among other active sectors, we can highlight IT, the service industry, the HoReCa sector (hotels, restaurants, cafés), manufacturing, and logistics centers.
- Labor Market Disproportion. The demand for employees is returning to the 2021 level, but there are significantly fewer offers from specialists. This is due to the massive emigration of Ukrainians, which has reached approximately 6.7 million individuals today. This figure has increased compared to 2022 following the energy system disruptions in Ukraine and the undermining of the Kakhovka Hydroelectric Station (HES). In addition, 51% of internally displaced people (IDPs) remain unemployed because they do not find jobs in new places that match their qualifications.
- Expectation of Higher Salaries: General inflation and a labor shortage have led jobseekers to raise their salary expectations. This is particularly relevant for those working in areas requiring specialized qualifications and facing high competition.
- Changes in the Hiring Funnel. Employers are increasingly open to collaborating with various population groups: disabled individuals, students, veterans, retirees, and people with no work experience. This trend is especially noticeable among scarce vacancies (sales consultants, chefs, realtors, customer relations managers, and more).
«The winner today is the one who invests in quality, responds quickly to market demands, and can adapt», Olesia notes.
Most In-Demand Job Vacancies
According to the HR portal grc.ua, in 2022, the demand for blue-collar jobs increased by 20%, and this trend is still relevant throughout Ukraine. Currently, 8% of all vacancies posted on specialized platforms belong to this segment of specialists.
«Currently, the most globally sought-after positions are those that can only be filled by men. When it comes to warehouse personnel, the most in-demand position is forklift drivers. Closing this vacancy was challenging even before the full-scale war because there were few qualified forklift drivers in the market. Now, the situation has worsened due to a general shortage of male workers», comments Olesia Kreminska.
The ranking of the most sought-after non-office professions includes:
- CNC operators;
- Turners;
- Machine tool operators;
- Loaders;
- Packers;
- Sorters;
- Packers;
- Cashier-sellers, etc.
The Benefits of Outsourcing in an Era of Instability
Outsourcing is an effective tool for companies seeking flexible solutions. One of its key advantages is the ability to respond promptly to changes in the labor market and the business needs. Companies can easily expand or reduce their personnel according to current tasks and projects. At the same time, without burdening themselves with the processes of recruitment, hiring, and employee retention.
Olesia Kreminska adds, «Outsourcing companies have a lot of experience and understand where and how to look for staff, what to offer them, what they live like, and how to motivate them. What will help them make a decision: compensation for travel or housing, an individual salary schedule, or flexible working conditions».
In an era of instability, people are more focused on how to provide for themselves and their families here and now, than about potential stability and guarantees in the future. Consequently, the format of hiring workers through outsourcing is gaining momentum in 2023. Furthermore, our professionals are in high demand abroad.
«Ukrainians are the most qualified, the most disciplined and hardworking blue-collar workers in Europe. They have deep expertise in the production processes that are core to the company, as they quickly gain experience. However, Ukrainians are rarely allowed to work above line managers – these are the realities of European management», notes Andrew Samchyshyn, Chief Operating Officer of SUN ONE.
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