Labor Shortage and Digitalization: Trends in Ukraine’s Labor Market in 2025

Що відбувається на українському ринку праці на четвертому році війни?

More than 70% of Ukrainian companies are currently facing a severe labor shortage. The main reasons for this situation are not only the mobilization of military conscripts into the Armed Forces but also mass internal migration and a significant outflow of the workforce abroad.

This is reported by Business • Media

How Businesses Are Responding to the Worker Shortage

Experts note that such a lack of personnel is prompting companies to implement new approaches to work organization. The vast majority of enterprises (88%) are raising salaries, while 46% are investing in the professional development of employees. Among the measures to retain staff are the expansion of benefit packages, including health insurance, bonus payments, psychological support, as well as compensation for utility costs and internet expenses.

Currently, over 70% of Ukrainian companies are experiencing a significant labor shortage. The reasons include not only the mobilization of military conscripts but also internal migration and the outflow of the workforce abroad.

Structural Changes and Prospects for 2025

In the manufacturing and service sectors, the labor shortage reaches 30-40% of pre-war levels. This issue is particularly acute in the eastern and southern regions, where production declines are accompanied by infrastructure destruction. In response, businesses are enhancing work processes: implementing digital technologies, involving women in previously male-dominated professions, and opening vacancies for retirees and youth.

At the same time, the information technology sector is demonstrating steady growth – the volume of the IT industry has increased by 5-10%. This has been made possible by attracting remote specialists, including those from abroad.

Forecast for 2025 includes:

  • The labor shortage will persist, while investments in salaries will increase (by 10-20%), flexible working conditions, retraining programs, and personnel development initiatives will be implemented.
  • Small and medium-sized enterprises will intensify digitalization and partially automate production processes.
  • The main focus will be on the equal involvement of women in various fields and support for older individuals.