Fewer people, greater challenges: how Ukraine’s labour market is changing

27/ 04/ 2026

Listen to online Stop   On 20 April, the European Business Association, in partnership with the Kyiv School of Economics, held an expert discussion titled “Human Capital: At the Core of Ukraine’s Economic Recovery”, dedicated to the key challenges and transformations of human capital in the context of war. 95% of EBA member companies are already facing labour shortages, as noted by Anna Derevyanko, Executive Director of the Association. This highlights the critical importance of the issue for both business and the economy as a whole. Vladyslav Iierusalymov, Lead of Human Capital Research at the Centre of Public Finance and Governance Analysis at the Kyiv School of Economics, presented the findings of the study “Invisible Risks for Human Capital”. Among the key challenges are demographic decline, shifts in population structure, and long-term risks to economic and social stability. Demographic challenges and labour market adaptation. Participants in the first panel discussed demographic pressures and the transformation of the labour market. Tetiana Lomakina, Advisor-Presidential Commissioner for Barrier-Free Environment, stressed the need to shift approaches to employees with disabilities — moving from a focus on limitations to an emphasis on opportunities and professional potential. A key priority is also the reintegration of veterans into civilian life and the labour market, drawing on international experience. Anatolii Komirnyi, Deputy Minister of Social Policy, Family and Unity of Ukraine for Digital Development, outlined the Ministry’s priorities, including support for internally displaced persons from evacuation through to integration, engagement with Ukrainians abroad, encouragement of birth rates, and expanding opportunities for women with children to participate in the labour market. Serhii Beresnev, HR Director at the Kyiv School of Economics, highlighted a paradox in the labour market: despite severe labour shortages, a significant share of the population remains economically inactive. Education and retraining systems better aligned with business needs could help address this imbalance. Tetiana Pashkina, HR expert, noted that the average age of workers in Ukraine is already 42, and the population continues to age. At the same time, the employment potential of older people remains underutilised: out of around 10 million pensioners, only a quarter are in work. Olga Gorbanovskaya, Partner at EY and Head of People Advisory Services in Ukraine, emphasised that the “ideal candidate” no longer exists on the labour market. As a result, organisations that develop talent internally will gain a competitive advantage. Businesses are adapting by engaging young talent, investing in training and development, and advancing digital transformation. The state is also supporting the creation of inclusive workplaces (around 2,400 in 2025) and partially compensating employment costs for internally displaced persons. Given Ukraine’s challenging demographic situation, continuous dialogue between government, education, and business is essential to align labour market needs with public policy, particularly in education. Human capital and technology: productivity for recovery. The second panel focused on the impact of technology on productivity and the labour market. Yuliia Zhovtiak, Director of the State Employment Centre, highlighted key labour market trends: the growing importance of employers’ social responsibility, jobseekers’ demand for stability and purpose in work, active development of training and retraining — including women entering traditionally “male” professions — and strong demand for blue-collar occupations. Among the most sought-after roles are drivers, tractor operators, welders, electricians, chefs, and nurses. Dmytro Zavgorodnii, Deputy Minister of Education and Science of Ukraine for Digital Development, noted that labour market challenges will intensify as both the number of people and financial resources decline. In response, the state plans to reform upper secondary education by introducing more flexible study profiles, strengthening career guidance, and deepening cooperation with employers. The focus should shift from mass higher education to its quality. Vitaliya Pisareva, General Manager of Royal Canin Ukraine, drew attention to increasing emotional strain and burnout risks among employees. In this context, companies must invest in team wellbeing and balance short-term business needs with long-term talent retention strategies. The company’s initiatives include employee support and development programmes, as well as a network of canistherapy centres that have already supported more than 8,000 Ukrainians. Mariia Abdullina, Head of OLX Jobs, noted that the labour market is responding to shortages mainly through rising wages: by around 20% in blue-collar professions and by up to 40–60% in certain segments. At the same time, employees continue to value not only financial conditions but also flexible schedules, location, and formal employment. Demographic shifts, labour shortages, and structural imbalances in the labour market require a systemic response from both government and business. Human capital remains one of the key conditions for Ukraine’s recovery. The development of education and retraining, broader inclusion of population groups in economic activity, investment in employee wellbeing, and the adoption of productivity-enhancing technologies must therefore remain a priority for both policymakers and businesses. The European Business Association sincerely thanks the speakers and participants, as well as the event partner — the Kyiv School of Economics — for this important discussion.

On 20 April, the European Business Association, in partnership with the Kyiv School of Economics, held an expert discussion titled “Human Capital: At the Core of Ukraine’s Economic Recovery”, dedicated to the key challenges and transformations of human capital in the context of war.

95% of EBA member companies are already facing labour shortages, as noted by Anna Derevyanko, Executive Director of the Association. This highlights the critical importance of the issue for both business and the economy as a whole.

Vladyslav Iierusalymov, Lead of Human Capital Research at the Centre of Public Finance and Governance Analysis at the Kyiv School of Economics, presented the findings of the study “Invisible Risks for Human Capital”. Among the key challenges are demographic decline, shifts in population structure, and long-term risks to economic and social stability.

Demographic challenges and labour market adaptation

Participants in the first panel discussed demographic pressures and the transformation of the labour market.

Tetiana Lomakina, Advisor-Presidential Commissioner for Barrier-Free Environment, stressed the need to shift approaches to employees with disabilities — moving from a focus on limitations to an emphasis on opportunities and professional potential. A key priority is also the reintegration of veterans into civilian life and the labour market, drawing on international experience.

Anatolii Komirnyi, Deputy Minister of Social Policy, Family and Unity of Ukraine for Digital Development, outlined the Ministry’s priorities, including support for internally displaced persons from evacuation through to integration, engagement with Ukrainians abroad, encouragement of birth rates, and expanding opportunities for women with children to participate in the labour market.

Serhii Beresnev, HR Director at the Kyiv School of Economics, highlighted a paradox in the labour market: despite severe labour shortages, a significant share of the population remains economically inactive. Education and retraining systems better aligned with business needs could help address this imbalance.

Tetiana Pashkina, HR expert, noted that the average age of workers in Ukraine is already 42, and the population continues to age. At the same time, the employment potential of older people remains underutilised: out of around 10 million pensioners, only a quarter are in work.

Olga Gorbanovskaya, Partner at EY and Head of People Advisory Services in Ukraine, emphasised that the “ideal candidate” no longer exists on the labour market. As a result, organisations that develop talent internally will gain a competitive advantage. Businesses are adapting by engaging young talent, investing in training and development, and advancing digital transformation. The state is also supporting the creation of inclusive workplaces (around 2,400 in 2025) and partially compensating employment costs for internally displaced persons. Given Ukraine’s challenging demographic situation, continuous dialogue between government, education, and business is essential to align labour market needs with public policy, particularly in education.

Human capital and technology: productivity for recovery

The second panel focused on the impact of technology on productivity and the labour market.

Yuliia Zhovtiak, Director of the State Employment Centre, highlighted key labour market trends: the growing importance of employers’ social responsibility, jobseekers’ demand for stability and purpose in work, active development of training and retraining — including women entering traditionally “male” professions — and strong demand for blue-collar occupations. Among the most sought-after roles are drivers, tractor operators, welders, electricians, chefs, and nurses.

Dmytro Zavgorodnii, Deputy Minister of Education and Science of Ukraine for Digital Development, noted that labour market challenges will intensify as both the number of people and financial resources decline. In response, the state plans to reform upper secondary education by introducing more flexible study profiles, strengthening career guidance, and deepening cooperation with employers. The focus should shift from mass higher education to its quality.

Vitaliya Pisareva, General Manager of Royal Canin Ukraine, drew attention to increasing emotional strain and burnout risks among employees. In this context, companies must invest in team wellbeing and balance short-term business needs with long-term talent retention strategies. The company’s initiatives include employee support and development programmes, as well as a network of canistherapy centres that have already supported more than 8,000 Ukrainians.

Mariia Abdullina, Head of OLX Jobs, noted that the labour market is responding to shortages mainly through rising wages: by around 20% in blue-collar professions and by up to 40–60% in certain segments. At the same time, employees continue to value not only financial conditions but also flexible schedules, location, and formal employment.

Demographic shifts, labour shortages, and structural imbalances in the labour market require a systemic response from both government and business. Human capital remains one of the key conditions for Ukraine’s recovery.

The development of education and retraining, broader inclusion of population groups in economic activity, investment in employee wellbeing, and the adoption of productivity-enhancing technologies must therefore remain a priority for both policymakers and businesses.

The European Business Association sincerely thanks the speakers and participants, as well as the event partner — the Kyiv School of Economics — for this important discussion.