What are the key trends and challenges of Western Ukrainian labour market?

10/ 04/ 2019

Traditionally EBA Western Ukrainian Office together with Lviv Consulting Group conducted mini-survey – Labour Market Index of Western Ukraine, 16th wave. The aim of this survey is to analyse current trends and challenges at labour market.

In comparison to previous 15th wave the Labour Market Index slightly increased to 2.4 (1- unfavourable environment, 5 – favourable). First, it could be explained by the fact that majority of respondents in the 16th wave are service companies. Compared to manufacturing companies, service providers are more optimistic in their assessment of the situation with availability of qualified labour and personnel related expenses. However, the market has a lot of challenges for employers.  For example, qualified workers prefer wages in EU countries. Thus, employee’s turnover and labour migration go up.

What is trending based on the survey results:

  • Intense competition for people is a key factor incorporated in pay strategies for all levels of employees.
  • Higher pay levels offered to non-skilled labour outside of Ukraine urge local employers to review wages several times a year.
  • The number of manufacturing companies offering the official minimal wage decreased.
  • The number of companies willing to pay wages above 13,000 UAH to qualified labour has increased by 25%.
  • There are more manufacturing companies that provide medical insurance and incident insurance to their employees. Service companies are still in favour of flexible working hours and additional paid vacations as employees’ incentives.
  • Demand for sales agents remains very high as 2 years ago.
  • Engineers, logistic specialists, export specialists, office managers and accountants can easily find jobs in manufacturing and service areas.
  • Electricians, mechanics, workers and assemblers are still in high demand in manufacturing companies.
  • Manufacturing companies are eager to employ young, result oriented and well-organized specialists.
  • Service companies appreciate young specialists with good communication skills, team spirit, eager to learn and improve. English and high level of Ukrainian language is a must for young candidates.

Competence (soft skills), which must have a university graduate or young professional (% of survey participants chose it as important)

Oksana Abramenko Senior Recruiter at Lviv Consulting Group
Findings of the Labour Market Index are important to the company that provides professional services for businesses, as they back up our observations.

“For a long time, demand for recruitment of external candidates is not going down in any industry. Every quarter shortage of qualified candidates at the labour market, competition for people with employers outside of Ukraine plus economic factors impact new employee hiring costs.

Thus, highly in demand specialists, e.g. in Logistics or Export/Import speaking a foreign language with min. 2-year experisence, asked for 9,000 UAH net minimum last year; today they will not consider vacancies with wages below 11,000 UAH net. Job seekers dominate at the labour market.

At last majority of employers have not just understood the situation but are also learning fast how to overcome the market challenges. This is a positive trend and it slightly pushes the Labour Index up to reflect a more favourable circumstances for employers”, said Ms Oksana Abramenko, Senior Recruiter at Lviv Consulting Group.

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