The labor market in Ukraine: modern trends

On the one hand, raising the minimum wage can be seen as a step towards improving working conditions for the most vulnerable categories of workers. It can also lead to improved consumer demand, as workers with higher incomes can increase their spending on goods and services.

However, on the other hand, negative consequences are also possible. An increase in the minimum wage can become an additional burden for small and medium-sized enterprises, which may experience difficulties in maintaining such a level of wage payments. This, in turn, can lead to an increase in unemployment and a decrease in the number of vacancies on the labor market. In addition, an increase in the minimum wage can lead to inflationary pressures, especially if it is not accompanied by a corresponding increase in labor productivity. This can reduce the purchasing power of the population and negatively affect the economic growth of the country.

In the light of these factors, it is important to analyze not only the fact of raising the minimum wage, but also its long-term consequences for the economy of Ukraine. Other factors affecting the labor market should also be taken into account, such as: trends in the economy, the political situation and government measures to stimulate employment and business development. In this context, the increase in the number of vacancies on the labor market can be considered as a positive signal, indicating the recovery of the economy after a period of instability. However, for a full assessment of the situation, it is necessary to take into account not only the number of vacancies, but also their quality, compliance with market requirements and the salary level offered by employers.

The labor market in Ukraine: where and whom employers are most looking for.

For data Work.ua, in March the labor market again crossed the mark of 100,000 vacancies. In 2022, there were ten times less of them. At the same time, the activity of candidates in responding to job offers has been decreasing since the beginning of 2024. And although this phenomenon corresponds to seasonal trends, it has other reasons. Yes, the decline of Work.ua is particularly noticeable recorded after massive attacks on energy infrastructure at the end of March.

This fact should be considered in the context of deep transformations taking place in the labor market, as well as in connection with the difficult economic conditions in which Ukraine is. The increased activity of employers in the search for candidates may be an attempt to adapt to changes in the internal and external situation, including the consequences of military actions in the east of the country.

In 5 regions of Ukraine, experts note the greatest increase in job offers in March:

• Ternopil (+11%),
• Zakarpattia (+8%),
• Poltava (+7%),
• Kirovohradsk (+7%),
• Khmelnytska (+6%).

These data indicate the regional differentiation of the labor market and can be an indicator of economic activity and potential development in these areas. But it is worth noting that because of the shelling of the energy infrastructure, there have been fewer vacancies in the Kharkiv region. In particular, Kharkiv faced almost the biggest problems after massive attacks.

The current situation on the labor market in Ukraine also shows the need for careful analysis and understanding of the interrelationship of various factors affecting its functioning. Employers, candidates and the government must work together on strategies to adapt to new realities, in particular by creating innovative programs and initiatives aimed at supporting and stimulating the labor market, and currently the largest number of vacancies is recorded in the service sector.

“The service sector is regaining its first place. Traditionally, in the labor market, the largest number of vacancies was generated in this category. However, since September 2023, the unchanging leader has been “Working specialties, production”, – they say specialists of the Work.ua portal.

In March 2024, the situation changed a little, and service specialists were again in first place (employers posted 17,722 vacancies, which is +10%). Next, the distribution according to the number of vacancies is as follows:

• Work specialties, production — 17,283, +7%;
• Sale, purchase — 14,348, +2%;
• Retail trade — 11,909, +6%;
• Logistics, warehouse, foreign trade — 9,822, +3%;
• Hotel and restaurant business, tourism — 9,781, +14%;
• Administration, mid-level management — 9,348, +6%;
• Transport, auto business — 8,143, +6%;
• Medicine, pharmacy — 7,352, +6%;
• Accounting, auditing — 7,328, +3%.

The categories “Hotel and restaurant business, tourism” and “Medicine, pharmaceuticals” also improved their positions in this rating.

In parallel with the growth of the total number of vacancies, there was more work for people without experience (+11% until February) and students (+7%). The number of vacancies for people with disabilities (+5%) and pensioners (+5%) increased. Job offers for veterans increased by 9% on the labor market.

However, the size of the average salary has not yet changed: for data Work.ua, it remained at the level of February and is 20,000 hryvnias.

Among the leading regions, salaries remained unchanged in Lviv (20,000 UAH) and Dnipropetrovsk (19,000 UAH) regions. After 4 months of silence, the average salary increased in the Kharkiv region (+ UAH 500 to UAH 18,000). This indicator also increased in Kyiv (+400 UAH to 22,400 UAH) and Odesa (+600 UAH to 20,000 UAH) regions.