Labour shortage, high salary expectations, and mobilisation: key trends in the labour market in 2024

21/ 11/ 2024

These findings are based on the results of the Research on the Labour Market in Ukraine conducted by the European Business Association in collaboration with labour market analytics expert Tetiana Pashkina. Below are the key takeaways from the study. Personnel Changes in 2024 88% of respondents opened new vacancies in 2024 87% increased employees’ salaries 71% reported experiencing a significant shortage of qualified personnel 56% invested in personnel development In 2024, companies focused on comprehensive support for their employees, combining financial incentives, health and professional development care, and creating comfortable working and living conditions. The most common support methods included full salary payments (98%) and bonuses (84%). More than half of the respondents (56%) reported that their companies invested in personnel development, 46% provided psychological support for employees and their families, and 21% helped employees with housing rental costs. Additionally, some companies covered medical insurance for employees’ family members, accommodation in other cities or abroad, and expenses for electricity and internet. Planned Changes in Companies for 2025 In 2025, companies are planning to implement a range of changes aimed at retaining and developing employees, expanding teams, and growing their businesses. The main areas of focus include: Increasing the workforce – 46% Raising salaries – 88% Increasing budgets for training and development – 33% Entering new markets and seeking new partners – 24% Increasing salary levels by 10-15% – 24% It is worth noting that 36% of companies plan to raise salary levels but have not yet determined the extent of the increase. Specifically, 16% of companies plan salary increases of 5-10%, 24% anticipate increases of 10-15%, 11% expect increases of 15-20%, оnly 1% plan to raise salaries by more than 20%. For comparison, in 2024 18% of companies raised salaries by less than 10%, 43% increased salaries by 10-15%, 21% implemented increases of 15-20%, 5% raised salaries by more than 20%. Remote Work 25% of companies allow all categories of employees to work remotely, while 63% permit remote work for only a portion of their staff. According to new data, 12% of companies do not provide their employees with the option to work remotely. This is slightly less compared to the previous survey, where 17% of respondents stated that their companies did not offer remote work opportunities. Categories of Employees Who Predominantly Cannot Work Remotely Medical representatives, regional managers, warehouse workers, loaders, drivers, production staff, shop assistants, bank employees, pharmacists. Accountants, engineers, logisticians, lawyers, administrative staff, operational staff, IT support, company executives/management, HR professionals. Employees authorised to sign documents, those whose work involves paper documentation, security staff, teachers. It is important to note that some companies allow remote work only within Ukraine. Employees Abroad According to the survey results 35% of companies reported that all their employees continue to work in Ukraine. This figure has slightly increased compared to the previous survey wave (previously 32%). 44% of companies indicated that up to 5% of their employees have relocated abroad and are working from another country. 10% stated that 5-10% of their employees are working abroad. 4% have 10-15% of their workforce abroad. 5% have more than 15% of their employees working outside Ukraine. 29% of companies plan to return employees to the office soon. 19% said the return would not apply to all employee categories. 51% reported they do not plan to return employees to the office. Did Your Company Open New Vacancies in 2024? In 2024 93% of companies opened new vacancies, with 3% offering roles exclusively to internal candidates and former employees. 7% did not open new vacancies. Does Your Company Plan to Open New Vacancies in 2025? In 2025 46% of companies plan to expand their workforce. 7% anticipate a reduction in headcount. 47% do not plan to change the number of employees. Are You Experiencing a Labour Shortage? 71% of respondents reported a significant labour shortage, a 3% decrease compared to the previous survey wave. 25% feel a partial shortage. Only 4% of companies do not experience any labour shortage. What Do You Believe Are the Key Challenges in Ukraine’s Labour Market Today? According to the survey, the main trends in Ukraine’s labour market in 2024 are: Labour shortages Higher salary expectations from candidates compared to business offerings Mobilisation Workforce migration abroad How Do You Assess Your Productivity and Performance Under Martial Law Conditions? 27% of respondents report that their productivity has remained unchanged, and they are working as they did before 24 February 2022. 39% feel they are experiencing burnout (compared to 37% in spring 2024). 12% believe they have become more productive. Another 12% indicate their performance has declined, and they are working less effectively. At the same time, 61% of respondents do not plan to change jobs, while 39% are considering it. What Experiences from This Year Will Be Valuable for You in the Future? The ability to work under any conditions and overcome various challenges, both external and internal. Quick adaptation to new circumstances and continuous learning. Living in the moment. Burnout can affect even the most motivated employees due to the realities they face. Prioritising the psychological well-being of the team. Crisis management in uncertain conditions, flexibility in approaches, and prompt decision-making in critical situations. Employees join companies but leave managers. Taking breaks and allowing oneself to rest — the workaholic mode no longer works. Solving problems in conditions of severe staff shortages. Reserving employees and reintegrating veterans. Employees deserve fair pay, compensation for overtime, and safe working conditions. Motivating staff without a budget. For reference: The study involved 216 HR professionals (39% department heads, 32% middle managers, 24% top management, 5% junior staff). 50% of the participants of this study represent international business, 50% - Ukrainian business. 51% of companies are large businesses, 36% are medium-sized businesses, and 13% are small businesses. The largest number of survey participants represent wholesale and retail trade, the pharmaceutical sector, food production, and specialised consulting services (legal, audit, marketing, recruitment, etc.). Other industries represented include agricultural sector, financial services, processing industry, non-food consumer goods, industrial goods, IT, metallurgy, light industry, chemical industry, logistics, construction, catering, and others. The study was conducted between 7 October and 10 November 2024, covering the period from May to October 2024. Participation was anonymous.

These findings are based on the results of the Research on the Labour Market in Ukraine conducted by the European Business Association in collaboration with labour market analytics expert Tetiana Pashkina. Below are the key takeaways from the study.

Personnel Changes in 2024

88% of respondents opened new vacancies in 2024
87% increased employees’ salaries
71% reported experiencing a significant shortage of qualified personnel
56% invested in personnel development

In 2024, companies focused on comprehensive support for their employees, combining financial incentives, health and professional development care, and creating comfortable working and living conditions.

The most common support methods included full salary payments (98%) and bonuses (84%). More than half of the respondents (56%) reported that their companies invested in personnel development, 46% provided psychological support for employees and their families, and 21% helped employees with housing rental costs.

Additionally, some companies covered medical insurance for employees’ family members, accommodation in other cities or abroad, and expenses for electricity and internet.

Planned Changes in Companies for 2025

In 2025, companies are planning to implement a range of changes aimed at retaining and developing employees, expanding teams, and growing their businesses. The main areas of focus include:

Increasing the workforce – 46%
Raising salaries – 88%
Increasing budgets for training and development – 33%
Entering new markets and seeking new partners – 24%
Increasing salary levels by 10-15% – 24%

It is worth noting that 36% of companies plan to raise salary levels but have not yet determined the extent of the increase. Specifically, 16% of companies plan salary increases of 5-10%, 24% anticipate increases of 10-15%, 11% expect increases of 15-20%, оnly 1% plan to raise salaries by more than 20%.

For comparison, in 2024 18% of companies raised salaries by less than 10%, 43% increased salaries by 10-15%, 21% implemented increases of 15-20%, 5% raised salaries by more than 20%.

Remote Work

25% of companies allow all categories of employees to work remotely, while 63% permit remote work for only a portion of their staff. According to new data, 12% of companies do not provide their employees with the option to work remotely. This is slightly less compared to the previous survey, where 17% of respondents stated that their companies did not offer remote work opportunities.

Categories of Employees Who Predominantly Cannot Work Remotely

Medical representatives, regional managers, warehouse workers, loaders, drivers, production staff, shop assistants, bank employees, pharmacists.
Accountants, engineers, logisticians, lawyers, administrative staff, operational staff, IT support, company executives/management, HR professionals.
Employees authorised to sign documents, those whose work involves paper documentation, security staff, teachers.

It is important to note that some companies allow remote work only within Ukraine.

Employees Abroad

According to the survey results 35% of companies reported that all their employees continue to work in Ukraine. This figure has slightly increased compared to the previous survey wave (previously 32%). 44% of companies indicated that up to 5% of their employees have relocated abroad and are working from another country. 10% stated that 5-10% of their employees are working abroad. 4% have 10-15% of their workforce abroad. 5% have more than 15% of their employees working outside Ukraine.

29% of companies plan to return employees to the office soon. 19% said the return would not apply to all employee categories. 51% reported they do not plan to return employees to the office.

Did Your Company Open New Vacancies in 2024?

In 2024 93% of companies opened new vacancies, with 3% offering roles exclusively to internal candidates and former employees. 7% did not open new vacancies.

Does Your Company Plan to Open New Vacancies in 2025?

In 2025 46% of companies plan to expand their workforce. 7% anticipate a reduction in headcount. 47% do not plan to change the number of employees.

Are You Experiencing a Labour Shortage?

71% of respondents reported a significant labour shortage, a 3% decrease compared to the previous survey wave. 25% feel a partial shortage. Only 4% of companies do not experience any labour shortage.

What Do You Believe Are the Key Challenges in Ukraine’s Labour Market Today?

According to the survey, the main trends in Ukraine’s labour market in 2024 are:

Labour shortages
Higher salary expectations from candidates compared to business offerings
Mobilisation
Workforce migration abroad

How Do You Assess Your Productivity and Performance Under Martial Law Conditions?

27% of respondents report that their productivity has remained unchanged, and they are working as they did before 24 February 2022. 39% feel they are experiencing burnout (compared to 37% in spring 2024). 12% believe they have become more productive. Another 12% indicate their performance has declined, and they are working less effectively. At the same time, 61% of respondents do not plan to change jobs, while 39% are considering it.

What Experiences from This Year Will Be Valuable for You in the Future?

The ability to work under any conditions and overcome various challenges, both external and internal.
Quick adaptation to new circumstances and continuous learning.
Living in the moment.
Burnout can affect even the most motivated employees due to the realities they face.
Prioritising the psychological well-being of the team.
Crisis management in uncertain conditions, flexibility in approaches, and prompt decision-making in critical situations.
Employees join companies but leave managers.
Taking breaks and allowing oneself to rest — the “workaholic mode” no longer works.
Solving problems in conditions of severe staff shortages.
Reserving employees and reintegrating veterans.
Employees deserve fair pay, compensation for overtime, and safe working conditions.
Motivating staff without a budget.

For reference:

The study involved 216 HR professionals (39% department heads, 32% middle managers, 24% top management, 5% junior staff).

50% of the participants of this study represent international business, 50% – Ukrainian business.

51% of companies are large businesses, 36% are medium-sized businesses, and 13% are small businesses.

The largest number of survey participants represent wholesale and retail trade, the pharmaceutical sector, food production, and specialised consulting services (legal, audit, marketing, recruitment, etc.).

Other industries represented include agricultural sector, financial services, processing industry, non-food consumer goods, industrial goods, IT, metallurgy, light industry, chemical industry, logistics, construction, catering, and others.

The study was conducted between 7 October and 10 November 2024, covering the period from May to October 2024. Participation was anonymous.