In Ukraine, according to the results of the first quarter of 2025, due to high demand for labor, the share of unemployed decreased and the share of employed increased, reaching the highest level since the beginning of the full-scale invasion. About this it is said in the April inflation report of the NBU.
The report notes that in the first quarter of 2025, both demand and supply in the labor market grew: compared to the same period in 2024, the number of both vacancies and resumes increased. Businesses have also stepped up efforts to attract to the labor market population groups that were previously less active: students, retirees, people with disabilities, and veterans.
As a result, the problem of the shortage of workers caused by the consequences of the war (migration, mobilization, disproportions in the labor market) has somewhat eased.
“However, it remained significant, in particular against the background of the further migration outflow, and restrained the activity of enterprises and the growth of output. The preservation of a significant shortage of personnel fueled the growth of wages, incomes of the population and, accordingly, aggregate demand.”, the report says.
According to the National Bank of Ukraine, the discrepancy between the demand and supply of qualified labor in the conditions of the revival of economic activity will contribute to the further increase of wages in the private sector, which will have the most noticeable pro-inflationary effect in 2025.
