The labor shortage in Ukraine has become one of the key factors influencing the country’s economic transformation. According to Ruslan Shostak, president of the TERWIN corporation and founder of EVA and VARUS, before the full-scale invasion by Russia in 2022, there were approximately 17.3 million working-age citizens in Ukraine. However, around 4.8 million people have now left the civilian labor market as they are fighting on the front lines, working in the defense industry and other critical sectors, evading mobilization, or have moved abroad.
This is reported by Бізнес • Медіа
Significant Increase in Average Salary
Ruslan Shostak emphasizes that the labor shortage has already become a driving force for economic changes, particularly causing unprecedented wage growth. If in 2019 the average salary in Ukraine was $385, by 2025 this figure is expected to rise to $542. In the businessman’s opinion, a smaller population is not an obstacle to economic prosperity, provided that a high level of income for citizens is ensured.
“Currently, the labor shortage has become one of the main driving forces of economic changes in the country, particularly the unprecedented wage growth,” noted the expert.
International Experience and Ukraine’s Prospects
Shostak compares the situation in Ukraine to the experiences of countries such as Luxembourg, the UAE, and Singapore. He points out that in Luxembourg, with a population of 660,000, the average salary reaches €5,000–6,000; in the UAE, with 10 million residents, it is €6,000–7,000; and in Singapore, with 5.6 million, it is €4,000–5,000. According to him, Ukraine should focus on the quality of life rather than just the population size.
The businessman is confident that if Ukraine concentrates on developing high-tech, export-oriented sectors and industries, by 2030 the country will be able to significantly improve the living standards of its citizens. He believes that the main task is to ensure a decent quality of life for all Ukrainians, regardless of demographic challenges.