Eva Antonenko
29 June 2022 18: 00
Headings: News Society Economy

23 vacancies per thousand unemployed: the labor market of Ukraine continues to sag

It is becoming increasingly difficult for Ukrainians to find work in their native country.

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23 vacancies per thousand unemployed: the labor market of Ukraine continues to sag

There are more and more officially registered unemployed in Ukraine, and the number of vacancies in employment centers has decreased. About it сообщил people's deputy Yaroslav Zheleznyak.

According to him, as of June 27, the number of officially registered unemployed in Ukraine amounted to 319,8 thousand. Compared to May, the official number of Ukrainians in need of a new job has increased by 4%, and since the beginning of the year - by 8%.

In absolute terms, the number of official unemployed did not increase much and even amounted to 90,9% of the previous year over the same period. But at the same time, the deputy stressed that Ukrainians who lost their jobs and homes simply went abroad or do not go to register.

MP Zheleznyak also cited the disappointing performance of the Ukrainian labor market. According to him, now in the employment fund, the number of vacancies is only 22,7 vacancies per thousand. For comparison: even in early March, when active hostilities were also taking place in the northern regions of Ukraine, this figure was 53,2. That is, despite the relative stabilization of the situation in certain areas, the labor market continues to sag, the number of employers is partially reduced, and those who continue to work decide to cut staff.

It should be noted that, according to the UN, as of June 28, 3 million 515 thousand Ukrainians were officially registered as refugees in Europe - that is, these are people who, for the most part, left the Ukrainian labor market, far from all of them continue to work remotely in Ukraine. At the same time, in general, 5 million 262 thousand Ukrainian refugees were recorded in Europe, if they return to the country, the pressure on the Ukrainian labor market will increase significantly.

Unofficial data on unemployment

Business, citizen survey data and job site analytics results show somewhat different results, which, however, fit into the trend of official statistics.

According to the agency Gradus, as of May 23, 35% of respondents remained unemployed (the figure is less than in April, but higher than in March). 59% said they have a job, up from 62% in March.

Also, according to Gradus, in June, the second key need of Ukrainians after money was access to work - this was important for 38% of respondents. At the same time, this indicator has decreased compared to May, even for critical categories of internal and external migrants.

According to a survey by the European Business Association (EBA), conducted among representatives of small and medium-sized businesses in May, compared to March, enterprises began to resume work: 17% of enterprises did not work, compared with 42% in March. But more companies started laying off employees (12% vs 8%) and more companies are cutting salaries (32% versus 19%).

According to the results of the EBA survey of large companies, in May 47% of companies worked in full (compared to 17% in March), 63% of companies continued to pay salaries in full. At the same time, 13% cut wages (3% in March), 4% sent employees on unpaid leave, and 8% made cuts (1% in March).

According to Advanter Group survey among representatives of small and medium-sized businesses, at the end of May - beginning of June, the share of already reduced staff was 20%.

American Chamber of Commerce also conducted a business survey - already in June. According to its results, 60% of companies have fully restored work, 82% continue to pay full salaries, 16% have reduced salaries, and 2% do not pay them. At the same time, 34% of companies that plan to continue working in Ukraine until the end of the year intend to cut costs, and 40% of those who plan to limit their activities will also reduce staff.

There is a strong trend towards a reduction in vacancies in Ukraine according to the results of analytics of job search sites:

  • According to worka.ua, at the end of June, there were an average of 1 candidates per 15 new vacancy in the system (a year ago, the figure was 4 resumes per new vacancy);
  • According to work.ua, there are 9 candidates per new vacancy (a year ago there were an average of 2 candidates).

Thus, given the trends in the Ukrainian labor market, we see that the situation is extremely difficult: the number of jobs offered is declining, and the number of people who lose their jobs has increased since the beginning of the war. And, taking into account the plans of companies in the future, Ukrainians are waiting for even more cuts.

In addition, with the increase in the number of unemployed in Ukraine, wages began to decline: in June, according to the NBU, they decreased by an average of 25-50%.

Refugees from Ukraine solve the problems of the Polish labor market

The Polish labor market is not only ready to accept a large number of Ukrainian refugees - they will even help solve critical issues in the labor market. To such conclusions based on the results of the study "Hospitable Poland 2022+" has come Wise Europe Foundation.

The study notes that almost half of the refugees registered in Poland are people of working age, 90% of whom are women. Since the 1990s, demographic problems began in the country associated with a low birth rate, and since 2010 the number of people of working age began to decline - while with the development of the economy, on the contrary, more and more jobs appeared on the Polish labor market. And in order to fill the demographic gap, the country needs able-bodied migrants.

About how to find a job in Poland and not only, we wrote in our material at the link.

We also talked about how to get your money back if you don't get paid, that the second vocational education in Ukraine can be obtained free of charge.

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