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LABOR MARKET IN UKRAINE: CURRENT CHALLENGES AND RISKS

stmm. 2022 (3): 121-148

DOI https://doi.org/10.15407/sociology2022.03.121

GULBARSHYN CHEPURKO, Doctor of Sciences in Sociology, Head of the Department of Social Expertise, Institute of Sociology, National Academy of Sciences of Ukraine (12, Shovkovychna St., Kyiv, 01021)

gichepurko@ukr.net

https://orcid.org/0000-0001-7540-5174

The article analyzes the situation on the labor market in Ukraine, starting before COVID-19 pandemic and up to present. It is noted that in recent years Ukrainian labor market is characterized by transformation stage, accompanied by specific negative consequences, including reduced productivity, deteriorated employment conditions, non-standard employment segment expansion and more. Professional occupation imbalance of supply and demand is significant on the national labor market. It increasingly loads regional labor markets, rasing the level of unemployment and social tension in the country. All these negative consequences rised up with COVID-19 pandemic and invasion of Ukraine by Russian Federation troops. It is noted that the main domestic labor market changes caused by COVID-19 pandemic during 2019–2021 are: decreasing employment; increasing unemployment rate; decreasing number of labor migrants; decreasing population incomes in labor force sale and self-employment because of job loss, decreasing salaries and entrepreneurs’ income. New trends in labor market caused by war in Ukraine are analyzed. As a result of war, the salaries of Ukrainians decreased, some specialists lost their jobs, and some professions lost their demand on the market. Companies were forced to relocate their businesses to safer regions, so the labor market structure changed depending on the region. Demand for work exceeds its supply, unemployment is high. It is defined that after having overcome the crisis caused by COVID-19 pandemic and war, there will be a need to attract more labor and expand employment opportunities on the Ukrainian labor market. Therefore, one of the important tasks of the state now is to create a clear system of priorities for employment. Among them: saving and developing human capital, creating incentives for employment and service export, deregulation and transparency of rules.

Keywords: labor market, COVID-19, war, risks, unemployment, supply and demand, remote work, employment opportunities.

References

Analytical and statistical information. (2022). The situation on the labor market and the activities of the State Employment Service in January-March 2022. [In Ukrainian]. Retrieved from https://www.dcz.gov.ua/analitics/all. [=Аналітична та статистична інформація 2022].

Balabaniuk, J. (2020). The world after pandemic: what will be with the global labor market in 2030–2050. [In Ukrainian]. Retrieved from https://mind.ua/openmind/20219270-svit-pislya-pandemiyi-yakim-bude-globalnij-rinok-praci-u-20302050-rokah. [=Балабанюк 2020].

Bereza, A. (2022). The strongest crisis in 10 years: the number of vacancies in the labor market decreased by 30 times. [In Ukrainian]. Retrieved from //https://kitsman.city/articles/207001/najsilnisha-kriza-za-10-rokiv-kilkist-vakansij-na-rinku-praci-zmenshilasya-u-30-raziv. [Береза 2022].

Boida, S. W. (2021). Trends in the Ukrainian labor market in the context of the COVID-19 pandemic. [In Ukrainian]. Retrieved from https://archer.chnu.edu.ua/jspui/bitstream. [=Бойда 2021].

Demand and supply in registered labor market in January-March 2022. (2022). [In Ukrainian]. Retrieved from https://www.dcz.gov.ua/sites/default/files/infofiles/03_2022_popyt_i_propozyciya_na_rynku_praci.pdf. [= Попит та пропозиція 2022].

Derevyanko, A. (2022). 100 days of war for Ukrainian business. [In Ukrainian]. Retrieved from: https://eba.com.ua/100-dniv-vijny-dlya-ukrayinskogo-biznesu/. [= Дерев’янко 2022].

Despite the war, most of Ukrainian businesses continue to operate, a study on March 7, 2022. (2022). [In Russian]. Retrieved from https://news.obozrevatel.com/economics/analytics-and-forecasts/iz-za-vojnyi-v-ukraine-ne-rabotaet -tret-ekonomiki.htm. [= Несмотря на войну 2022].

Grigorenko, Yu. (2020). Coronavirus strike: how quarantine transformed the labor market. [In Russian]. Retrieved from: https://gmk.center/posts/koronnyj-udar-kak-karantin-transformiroval-rynok-truda/. [= Григоренко 2020].

How the COVID-19 pandemic changed labor market in Ukraine. Analytics. Kyiv (2020). [In Ukrainian]. Retrieved from: https://www.ukrinform.ua/rubric-society/3104312-ak-pandemia-covid19-zminila-rinok-praci-v-ukraini.html. [= Як пандемія COVID-19 змінила ринок праці 2020].

Kobelia, Z. I., Todoriuk, S. I., Stortsun, K. M. (2021). Labor migration in the context of current market transformation stage of Ukrainian economy. [In Ukrainian]. Ekonomika ta derzhava, 4, 132–136. [= Кобеля 2021].

Labor market barometer of Ukraine: main trends of 2021. (2021). [In Ukrainian]. Retrieved from: https://eba.com.ua/barometr-rvnku-pratsi-ukravinv-golovni-tendentsiyi-2021-roku. [=Барометр ринку праці 2021].

Labor market of the future: who will be on demand and who will be fired. (2021). BBC News Ukraine. [In Ukrainian]. Retrieved from: https://www.bbc.com/ukrainian / features-55816369. [= Ринок праці майбутнього 2021].

Labor migration: how many Ukrainians worked abroad in 2019–2021. (2021). [In Russian]. Retrieved from: https://ru.slovoidilo.ua/ 2021/03/18 / infografika. [= Трудовая миграция 2021].

Lavrynenko, L. (2020). The quarantine labor market and professions demand after the COVID-19 pandemic. [In Ukrainian]. Retrieved from https://doi.org/10.36074/2663-4139.09.03. [= Лавриненко 2020].

Law of Ukraine “On Amendments to Certain Laws of Ukraine Concerning Functioning of Spheres of Employment and Compulsory State Social Insurance in case of Unemployment during Martial Law” № 2220-IX, April 21, 2022. (2022). [In Ukrainian]. Retrieved from https://ips.ligazakon.net/document/ view / T222220? an = 1. [= Закон України 2022].

Main labor market indicators (annual data). (2021). State Statistics Service of Ukraine, 2000-2021. [In Ukrainian]. Retrieved from http://www.ukrstat.gov.ua/operativ/menu/menu_u/rp.htm. [= Основні показники 2021].

Marchenko, L. (2022). Ukrainian labor market vacancies: who is on demand, the level of wages fall, and who has more chances to find job. [In Russian]. Retrieved from https://biz.today.ua/ru/ukrayinska-vakansiyi-na-ukrayinskomu-rynku-pratsi-kogo-shukayut-na-skilky-vpaly-zarplaty-i-v-kogo-ye-najbilshe-shansiv/. [= Марченко 2022].

No reasons to expect a significant increase in poverty in 2020. (2020). Ministry of Social Policy. [In Ukrainian]. Retrieved from // https: //www.msp. gov.ua/news/18675.html]. [= Підстав очікувати підвищення рівня бідності 2020].

Pavliuk, O. (2022). UN: every third job in Ukraine has disappeared because of war. [In Ukrainian]. Retrieved from https://suspilne.media/238410-oon-kozne-trete-roboce-misce-v-ukraini-zniklo-cerez-vijnu/. [= Павлюк 2022].

Pavliuk, O., Galka, N. (2022). There may be up to half a million unemployed in Ukraine. Federation of Employers. [In Ukrainian]. Retrieved from https://suspilne.media/236599-v-ukraini-moze-buti-do-piv-miljona-bezrobitnih-federacia-robotodavciv/. [= Павлюк, Галка 2022].

Pirogova, M. (2022). What trends can be expected in the labor market in 2022: care for employees, staff shortages and lifelong learning. [In Russian]. Retrieved from: https://delo.ua/business/zabota-o-sotrudnikax-deficit-kadrov-i-postoyannoe-obucenie-kakie-trendy-ozidat-na-rynke-truda-v-2022-godu-392990/. [= Пирогова 2022].

Prithwiraj Choudhury, Cirrus Foroughi, Barbara Zepp Larson. (2020). Work-from-Anywhere: The Productivity Effects of Geographic Flexibility. Academy of Management Proceedings, 1. Retrieved from https://journals.aom.org/doi/epdf/10.5465/AMBPP.2020.225.

Romashov, I. (2022a). What happens on the labor market in wartime: Robota.ua. analysts review. [In Ukrainian]. Retrieved from https://rau.ua/novyni/rinku-praci-vijni-robota-ua/. [= Ромашов 2022a].

Romashov, I. (2022b). What happens on the labor market in wartime? [In Ukrainian]. Retrieved from https://thepoint.rabota.ua/scho-vidbuvayetsya-na-rynku-pratsi-pid-chas-viyny/. [= Ромашов 2022b].

Salo, Ya. V., Bazeliuk, O. V. (2021). The impact of COVID-19 pandemic on the labor market in Ukraine. [In Ukrainian]. Ekonomika ta suspilstvo, 33. Retrierved from http://www.economyandsociety.in.ua/index.php/journal/article/view/868. [= Сало 2021].

Shamileva, L. L. (2020). Assessment of impact of the financial and economic crisis and the COVID-19 pandemic on the national labor market. [In Ukrainian]. Economic Bulletin of Donbass, 3, 177–182. [= Шамілева 2020].

Sobenko, N. (2022). The Ministry launched a hotline to consult on IDP payments and unemployment benefits for internally displaced people. [In Ukrainian]. Retrieved from https://suspilne.media/232863-mincifra-zapustila-garacu-liniu-dla-konsultacij-sodo-viplat-vpo-ta-dopomogi-bezrobitnim/. [= Собенко 2022].

State Employment Center (2021). [In Ukrainian]. Retrieved from https://www.dcz.gov.ua/storinka/analityka-ta-statystyka. [= Державний центр зайнятості 2021].

State Statistics Service of Ukraine. (2021). [In Ukrainian]. Retrieved from: http://www.ukrstat.gov.ua/. [= Державна служба статистики України 2021].

Ukraine: the impact of COVID-19 on economy and society (Post-pandemic development in 2020-2024 by experts and youth vision) (2020). Consensus Forecasting Department of Strategic Planning and Macroeconomic Forecasting, 52. [In Ukrainian]. Retrieved from https://www.me.gov.ua/Documents/Download?id=bc5d2c61-1a7f-4ec7-8071-b996f2ad2b5a. [= Україна 2020].

Vodianka, L. D., Todoriuk, S. I., Todoriko, I. M. (2021). The impact of the COVID-19 pandemic on the labor market in Ukraine and in the world. [In Ukrainian]. Ekonomika ta derzhava, 10, 74–79. [=Водянка 2021].

Wartime labor market in figures and facts. (2022). [In Ukrainian]. Retrieved from //https://eba.com.ua/rynok-pratsi-voyennogo-chasu-u-tsyfrah-ta-faktah/. [= Ринок праці 2022].

Zavoloka, Yu. M. (2021). The impact of COVID-19 pandemic recession on unemployment and labor market. [In Ukrainian]. Agrosvit, 9/10, 53–59. [= Заволока 2021].

Zavoloka, Yu. M., Ivko, A. V., Sidnenko, M. V. (2021). Structural changes of the labor market in the postwar period. [In Ukrainian]. Graal nauki, 5, 29–2. [= Заволока, Івка 2021].

Zhaldak, G. P., Kosianchuk, V. O. (2021). Impact of Сovid-19 on the labor market. [In Ukrainian]. Eastern Europe: Economy, Business and Governance, 6 (33). Retrieved from http://www.easterneurope-ebm.in.ua/journal/33_2021/32.pdf. [=Жалдак 2021].

Zhyrii, K. (2022). How Ukrainian labor market was changed by the war. [In Ukrainian]. Retrieved from https://www.unian.ua/economics/finance/yak-viyna-zminila-ukrajinskiy-rinok-praci-novini-ukrajina-11763112.html. [= Жирій 2022].

Received 13.06.2022

LABOR MARKET IN UKRAINE: CURRENT CHALLENGES AND RISKS

stmm. 2022 (3): 121-148

DOI https://doi.org/10.15407/sociology2022.03.121

GULBARSHYN CHEPURKO, Doctor of Sciences in Sociology, Head of the Department of Social Expertise, Institute of Sociology, National Academy of Sciences of Ukraine (12, Shovkovychna St., Kyiv, 01021)

gichepurko@ukr.net

https://orcid.org/0000-0001-7540-5174

The article analyzes the situation on the labor market in Ukraine, starting before COVID-19 pandemic and up to present. It is noted that in recent years Ukrainian labor market is characterized by transformation stage, accompanied by specific negative consequences, including reduced productivity, deteriorated employment conditions, non-standard employment segment expansion and more. Professional occupation imbalance of supply and demand is significant on the national labor market. It increasingly loads regional labor markets, rasing the level of unemployment and social tension in the country. All these negative consequences rised up with COVID-19 pandemic and invasion of Ukraine by Russian Federation troops. It is noted that the main domestic labor market changes caused by COVID-19 pandemic during 2019–2021 are: decreasing employment; increasing unemployment rate; decreasing number of labor migrants; decreasing population incomes in labor force sale and self-employment because of job loss, decreasing salaries and entrepreneurs’ income. New trends in labor market caused by war in Ukraine are analyzed. As a result of war, the salaries of Ukrainians decreased, some specialists lost their jobs, and some professions lost their demand on the market. Companies were forced to relocate their businesses to safer regions, so the labor market structure changed depending on the region. Demand for work exceeds its supply, unemployment is high. It is defined that after having overcome the crisis caused by COVID-19 pandemic and war, there will be a need to attract more labor and expand employment opportunities on the Ukrainian labor market. Therefore, one of the important tasks of the state now is to create a clear system of priorities for employment. Among them: saving and developing human capital, creating incentives for employment and service export, deregulation and transparency of rules.

Keywords: labor market, COVID-19, war, risks, unemployment, supply and demand, remote work, employment opportunities.

References

Analytical and statistical information. (2022). The situation on the labor market and the activities of the State Employment Service in January-March 2022. [In Ukrainian]. Retrieved from https://www.dcz.gov.ua/analitics/all. [=Аналітична та статистична інформація 2022].

Balabaniuk, J. (2020). The world after pandemic: what will be with the global labor market in 2030–2050. [In Ukrainian]. Retrieved from https://mind.ua/openmind/20219270-svit-pislya-pandemiyi-yakim-bude-globalnij-rinok-praci-u-20302050-rokah. [=Балабанюк 2020].

Bereza, A. (2022). The strongest crisis in 10 years: the number of vacancies in the labor market decreased by 30 times. [In Ukrainian]. Retrieved from //https://kitsman.city/articles/207001/najsilnisha-kriza-za-10-rokiv-kilkist-vakansij-na-rinku-praci-zmenshilasya-u-30-raziv. [Береза 2022].

Boida, S. W. (2021). Trends in the Ukrainian labor market in the context of the COVID-19 pandemic. [In Ukrainian]. Retrieved from https://archer.chnu.edu.ua/jspui/bitstream. [=Бойда 2021].

Demand and supply in registered labor market in January-March 2022. (2022). [In Ukrainian]. Retrieved from https://www.dcz.gov.ua/sites/default/files/infofiles/03_2022_popyt_i_propozyciya_na_rynku_praci.pdf. [= Попит та пропозиція 2022].

Derevyanko, A. (2022). 100 days of war for Ukrainian business. [In Ukrainian]. Retrieved from: https://eba.com.ua/100-dniv-vijny-dlya-ukrayinskogo-biznesu/. [= Дерев’янко 2022].

Despite the war, most of Ukrainian businesses continue to operate, a study on March 7, 2022. (2022). [In Russian]. Retrieved from https://news.obozrevatel.com/economics/analytics-and-forecasts/iz-za-vojnyi-v-ukraine-ne-rabotaet -tret-ekonomiki.htm. [= Несмотря на войну 2022].

Grigorenko, Yu. (2020). Coronavirus strike: how quarantine transformed the labor market. [In Russian]. Retrieved from: https://gmk.center/posts/koronnyj-udar-kak-karantin-transformiroval-rynok-truda/. [= Григоренко 2020].

How the COVID-19 pandemic changed labor market in Ukraine. Analytics. Kyiv (2020). [In Ukrainian]. Retrieved from: https://www.ukrinform.ua/rubric-society/3104312-ak-pandemia-covid19-zminila-rinok-praci-v-ukraini.html. [= Як пандемія COVID-19 змінила ринок праці 2020].

Kobelia, Z. I., Todoriuk, S. I., Stortsun, K. M. (2021). Labor migration in the context of current market transformation stage of Ukrainian economy. [In Ukrainian]. Ekonomika ta derzhava, 4, 132–136. [= Кобеля 2021].

Labor market barometer of Ukraine: main trends of 2021. (2021). [In Ukrainian]. Retrieved from: https://eba.com.ua/barometr-rvnku-pratsi-ukravinv-golovni-tendentsiyi-2021-roku. [=Барометр ринку праці 2021].

Labor market of the future: who will be on demand and who will be fired. (2021). BBC News Ukraine. [In Ukrainian]. Retrieved from: https://www.bbc.com/ukrainian / features-55816369. [= Ринок праці майбутнього 2021].

Labor migration: how many Ukrainians worked abroad in 2019–2021. (2021). [In Russian]. Retrieved from: https://ru.slovoidilo.ua/ 2021/03/18 / infografika. [= Трудовая миграция 2021].

Lavrynenko, L. (2020). The quarantine labor market and professions demand after the COVID-19 pandemic. [In Ukrainian]. Retrieved from https://doi.org/10.36074/2663-4139.09.03. [= Лавриненко 2020].

Law of Ukraine “On Amendments to Certain Laws of Ukraine Concerning Functioning of Spheres of Employment and Compulsory State Social Insurance in case of Unemployment during Martial Law” № 2220-IX, April 21, 2022. (2022). [In Ukrainian]. Retrieved from https://ips.ligazakon.net/document/ view / T222220? an = 1. [= Закон України 2022].

Main labor market indicators (annual data). (2021). State Statistics Service of Ukraine, 2000-2021. [In Ukrainian]. Retrieved from http://www.ukrstat.gov.ua/operativ/menu/menu_u/rp.htm. [= Основні показники 2021].

Marchenko, L. (2022). Ukrainian labor market vacancies: who is on demand, the level of wages fall, and who has more chances to find job. [In Russian]. Retrieved from https://biz.today.ua/ru/ukrayinska-vakansiyi-na-ukrayinskomu-rynku-pratsi-kogo-shukayut-na-skilky-vpaly-zarplaty-i-v-kogo-ye-najbilshe-shansiv/. [= Марченко 2022].

No reasons to expect a significant increase in poverty in 2020. (2020). Ministry of Social Policy. [In Ukrainian]. Retrieved from // https: //www.msp. gov.ua/news/18675.html]. [= Підстав очікувати підвищення рівня бідності 2020].

Pavliuk, O. (2022). UN: every third job in Ukraine has disappeared because of war. [In Ukrainian]. Retrieved from https://suspilne.media/238410-oon-kozne-trete-roboce-misce-v-ukraini-zniklo-cerez-vijnu/. [= Павлюк 2022].

Pavliuk, O., Galka, N. (2022). There may be up to half a million unemployed in Ukraine. Federation of Employers. [In Ukrainian]. Retrieved from https://suspilne.media/236599-v-ukraini-moze-buti-do-piv-miljona-bezrobitnih-federacia-robotodavciv/. [= Павлюк, Галка 2022].

Pirogova, M. (2022). What trends can be expected in the labor market in 2022: care for employees, staff shortages and lifelong learning. [In Russian]. Retrieved from: https://delo.ua/business/zabota-o-sotrudnikax-deficit-kadrov-i-postoyannoe-obucenie-kakie-trendy-ozidat-na-rynke-truda-v-2022-godu-392990/. [= Пирогова 2022].

Prithwiraj Choudhury, Cirrus Foroughi, Barbara Zepp Larson. (2020). Work-from-Anywhere: The Productivity Effects of Geographic Flexibility. Academy of Management Proceedings, 1. Retrieved from https://journals.aom.org/doi/epdf/10.5465/AMBPP.2020.225.

Romashov, I. (2022a). What happens on the labor market in wartime: Robota.ua. analysts review. [In Ukrainian]. Retrieved from https://rau.ua/novyni/rinku-praci-vijni-robota-ua/. [= Ромашов 2022a].

Romashov, I. (2022b). What happens on the labor market in wartime? [In Ukrainian]. Retrieved from https://thepoint.rabota.ua/scho-vidbuvayetsya-na-rynku-pratsi-pid-chas-viyny/. [= Ромашов 2022b].

Salo, Ya. V., Bazeliuk, O. V. (2021). The impact of COVID-19 pandemic on the labor market in Ukraine. [In Ukrainian]. Ekonomika ta suspilstvo, 33. Retrierved from http://www.economyandsociety.in.ua/index.php/journal/article/view/868. [= Сало 2021].

Shamileva, L. L. (2020). Assessment of impact of the financial and economic crisis and the COVID-19 pandemic on the national labor market. [In Ukrainian]. Economic Bulletin of Donbass, 3, 177–182. [= Шамілева 2020].

Sobenko, N. (2022). The Ministry launched a hotline to consult on IDP payments and unemployment benefits for internally displaced people. [In Ukrainian]. Retrieved from https://suspilne.media/232863-mincifra-zapustila-garacu-liniu-dla-konsultacij-sodo-viplat-vpo-ta-dopomogi-bezrobitnim/. [= Собенко 2022].

State Employment Center (2021). [In Ukrainian]. Retrieved from https://www.dcz.gov.ua/storinka/analityka-ta-statystyka. [= Державний центр зайнятості 2021].

State Statistics Service of Ukraine. (2021). [In Ukrainian]. Retrieved from: http://www.ukrstat.gov.ua/. [= Державна служба статистики України 2021].

Ukraine: the impact of COVID-19 on economy and society (Post-pandemic development in 2020-2024 by experts and youth vision) (2020). Consensus Forecasting Department of Strategic Planning and Macroeconomic Forecasting, 52. [In Ukrainian]. Retrieved from https://www.me.gov.ua/Documents/Download?id=bc5d2c61-1a7f-4ec7-8071-b996f2ad2b5a. [= Україна 2020].

Vodianka, L. D., Todoriuk, S. I., Todoriko, I. M. (2021). The impact of the COVID-19 pandemic on the labor market in Ukraine and in the world. [In Ukrainian]. Ekonomika ta derzhava, 10, 74–79. [=Водянка 2021].

Wartime labor market in figures and facts. (2022). [In Ukrainian]. Retrieved from //https://eba.com.ua/rynok-pratsi-voyennogo-chasu-u-tsyfrah-ta-faktah/. [= Ринок праці 2022].

Zavoloka, Yu. M. (2021). The impact of COVID-19 pandemic recession on unemployment and labor market. [In Ukrainian]. Agrosvit, 9/10, 53–59. [= Заволока 2021].

Zavoloka, Yu. M., Ivko, A. V., Sidnenko, M. V. (2021). Structural changes of the labor market in the postwar period. [In Ukrainian]. Graal nauki, 5, 29–2. [= Заволока, Івка 2021].

Zhaldak, G. P., Kosianchuk, V. O. (2021). Impact of Сovid-19 on the labor market. [In Ukrainian]. Eastern Europe: Economy, Business and Governance, 6 (33). Retrieved from http://www.easterneurope-ebm.in.ua/journal/33_2021/32.pdf. [=Жалдак 2021].

Zhyrii, K. (2022). How Ukrainian labor market was changed by the war. [In Ukrainian]. Retrieved from https://www.unian.ua/economics/finance/yak-viyna-zminila-ukrajinskiy-rinok-praci-novini-ukrajina-11763112.html. [= Жирій 2022].

Received 13.06.2022

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