Unprecedented mobilization of labor: who goes to work during the war and why
25 April 2025 22:17
The share of employed Ukrainians has grown to a record high during the full-scale war. The share of employed Ukrainians reached 52.4% in the first quarter of 2025, the highest level since the beginning of Russia’s full-scale invasion of Ukraine, "Komersant Ukrainian" reports, citing the National Bank of Ukraine.
This is 2 percentage points more than in the previous quarter and the highest level since December 2021, when the figure was 57%.
Factors of employment growth
Employment growth occurred against the backdrop of increased demand for labor and intensified economic activity. The first quarter of 2025 saw an increase in both job openings and resumes compared to the same period in 2024. This indicates the revival of the labor market and the readiness of citizens to return to active labor activity.
One of the important factors was the recovery of small and medium-sized enterprises, particularly in construction, transportation, trade and services. According to the NBU, it was these sectors that provided the main employment growth in the first quarter of 2025.
Attracting new groups to the labor market
Enterprises actively recruited categories of the population that were previously less represented in the labor market: students, pensioners, persons with disabilities and veterans. This helped to reduce the problem of staff shortages resulting from migration, mobilization and other consequences of the war. However, despite these efforts, the shortage of skilled labor remains significant and continues to constrain businesses.
The Government pays special attention to creating opportunities for retraining the population. Vocational training programs allow workers to learn new occupations adapted to wartime and postwar needs.
Decrease in unemployment and inactive population
The share of the unemployed decreased from 5.1% to 4.5% in the first quarter of 2025. The share of the inactive population also decreased, from 44.5% to 43.1%. These indicators indicate positive trends in the labor market and gradual recovery of the economy.
The NBU notes that employment growth is also occurring in the face of the constant threat of attacks on critical infrastructure, which demonstrates the high adaptability of businesses and employees.
Impact on wages and inflation
Persistent labor shortages are contributing to wage growth, especially in the private sector. The National Bank of Ukraine forecasts that this will have a pro-inflationary effect in 2025, as higher incomes increase aggregate demand for goods and services.
Along with rising wages, competition for skilled labor is increasing, especially in IT, logistics, medicine and construction. This encourages businesses to invest more in staff training.
The record growth in the share of working Ukrainians testifies to the adaptation of the economy to the war conditions and the effectiveness of measures aimed at supporting employment. However, for further development it is necessary to address the shortage of skilled labor, in particular through vocational training and requalification programs. It is also important to provide support for businesses that create new jobs and to facilitate the return of labor migrants.
Overall, the positive trends in the labor market are an important signal to investors and international partners about the resilience of the Ukrainian economy and its ability to recover even in the face of war. Maintaining these employment rates will be a key factor for the country’s post-war development.
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