Ukraine’s labor force has decreased by 12% since the beginning of the war – report

Due to military operations and population decline, the labor force in Ukraine has decreased by 2.1 million people, or about 12%, to 15.2 million. This is stated in a joint report on economic policy priorities prepared by the Ministry of Economy and the Ministry of Finance, Interfax-Ukraine reports.

“In addition, about half of the labor force in Ukraine is inactive – neither working nor looking for work, while almost three-quarters of employers in the country say they are experiencing a shortage of staff,” the document says.

According to the authors of the report, the situation is complicated by Ukraine’s pre-war problem of rapidly aging and shrinking population. According to forecasts, refugees returning to the country will increase the labor force to 16.0-16.4 million people in 2026. However, this is still 0.9-1.3 million less than the pre-war record of 17.3 million in 2021.

«This confirms the need to attract more labor, encourage refugee returns, and increase labor force participation, especially among women, to support economic recovery among women, to support economic recovery,” the document says.

The report emphasizes that Ukraine is committed to implementing the necessary reforms to address some of these issues, but also needs help in providing the social services and employment opportunities needed to attract more workers.

As GMK Center reported earlier, according to an April study by the European Business Association in partnership with Tetiana Pashkina, a labor market analyst, almost three quarters (74%) of employers in the country are experiencing a shortage of staff.