Mobilization and migration are the main causes of staff shortages – Ministry of Economy’s survey

Mobilization and migration are the key reasons for the shortage of skilled workers. These factors were cited by 67% and 54% of employers who took part in an online survey on the labor market conducted by the Ministry of Economy, respectively.

According to the results published by the Ministry, among other negative factors causing labor shortages, respondents also mentioned uncompetitive wages (36%) and internal migration (21%).

Among the challenges currently faced by businesses, the survey respondents see the search for qualified employees as the main one (58%). Other challenges include the need for external financing (42%), business security (40%), competition (25%), and supply chains (24%).

About 41% of respondents reported that the number of their employees remained the same after the full-scale invasion of Russia, 5% increased by 20%, and 3% increased by more than 20%. More than 19% of respondents experienced staff attrition of up to 20%, 17% – 20-50%, and 15% – more than 50%.

The majority of respondents (59%) are of the opinion that there was no shortage of qualified personnel in the Ukrainian market before the full-scale invasion of Russia.

“Despite a significant reduction in jobs and an increase in unemployment in 2022-2023, employers who hire workers in 2024 already point to a shortage of personnel,” the Ministry of Economy noted.

According to the survey, 43% of respondents faced difficulties in filling vacancies this year.

As for the forecasts, 36% of respondents expect the situation on the labor market to deteriorate after the war ends, while 24% believe there will be no shortage of personnel.

The survey involved 3175 respondents from all regions of Ukraine. Of these, 16% are engaged in agriculture, 15% in wholesale and retail trade, 10% in manufacturing, 9% in healthcare, 9% in education, and 15% in other services. The survey involved 88% of enterprises with less than 200 employees, so, as the Ministry of Economy noted, the sample is mainly a cross-section of small and medium-sized businesses.

According to an April study by the European Business Association in partnership with Tetyana Pashkina, a labor market analyst, almost three quarters (74%) of employers in the country are experiencing a shortage of staff.