Labor Crisis in Ukraine: How War Is Transforming the Labor Market and Business Staffing Policies
The Ukrainian labor market in 2025 is experiencing one of the most serious transformations in its history. Staff shortage, which began to manifest even before the full-scale invasion, has now become a critical problem for both businesses and government agencies. This situation determines a new logic for working with personnel and forces a rethink of the role of labor market development strategy at the national level.
War, mass migration, and deteriorating demographics are all contributing to an acute shortage of qualified personnel. Even today, there is a shortage of specialists in the medical, technical, and manufacturing sectors. “We still have about 8 million people aged 18-34, it will be worse in 15 years,” emphasizes Olha Dukhnich, head of the demography and migration area at the Frontier Institute. She highlights: 70% of businesses are currently experiencing staffing problems.
The medical field is particularly vulnerable. The general director of the DILA medical laboratory, Oleksii Babych, states: “We are opening a department, but we cannot find a nurse for half a year.” The lack of staff forces companies to look for non-standard solutions: working with future specialists even at the college level, offering competitive salaries (which have increased by 70% over two years), and investing in training. However, even these efforts do not guarantee a solution to the problem.
Supporting Personnel: Salary and Non-material Values
To retain specialists in the company, it is not enough to just raise salaries. Non-material values play a major role the attitude of the manager, quality feedback, and psychological support. HR expert Ilona Pasechnyk emphasizes: “Saying a kind word, being interested in the situation, giving feedback on the work this employee is doing does not cost much. But it retains employees, motivates them, and supports them in difficult times.” Work should be “an island of stability,” and confidence in receiving “white” (official) wages on a card becomes critically important.
Ageism and New Approaches to Team Formation
In conditions of staff shortages, employers are forced to reconsider their attitude toward age groups. Combating ageismis not just a social challenge but a practical step for business survival. The founder of the “Zhytelub” fund, Tina Nikolova, notes: “The most stigmatized are employees over 40 years old in such sectors as the creative segment, all of HoReCa, the entire beauty sector. Even the office sector, because it is believed that a good office manager is a young 23-year-old woman.” She calls on businesses to reconsider stereotypes and actively involve experienced professionals.
Investing in Education and Retraining
Professional education is becoming the key to updating the labor market. The director of the State Employment Service, Yulia Zhovtyak, emphasizes: “The most important mission for business and the state today is to invest in people.” The state offers free training and retraining not only for the unemployed but also for people over 45 years old. At the same time, short-term technical courses are actively being implemented, allowing urgent vacancies to be filled quickly. Serhii Savitskyi, head of the KSE Pro Tech project, emphasizes: “We focus on the adult population, and by adults we mean people aged 18+. And then there are practically no limits.”
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Migration and Future Integration Challenges
Postwar reconstruction will require the involvement of labor migrants. “I hope that we, as a country, will take this into account and build our own integration infrastructure,” emphasizes Yulia Zhovtyak. The lack of integration experience in Ukraine may lead to repeating European mistakes. This means the need not only to accept workers from the East and Asia, but also to develop a support, training, and socialization system.
Personnel policy in Ukraine is entering a phase of systemic renewal. Staff shortages, demographic decline, war, and mass migration these factors are creating new rules of the game. Employers today must rethink personnel management strategies, invest in training, form inclusive teams, and overcome prejudices regarding age or gender. At the same time, the state is responsible for developing the infrastructure for retraining, mental health, and migrant adaptation.
The main challenge of the coming years is not just to find workers, but to create conditions under which work in Ukraine will truly be competitive, stable, and dignified. Without this, the labor market and business will not be able to overcome the crisis, and the economy will not receive the necessary impetus for recovery and growth.
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