Military mobilization and concerns about it are contributing to shortfalls in Ukraine’s labor market. And the “people shortage” is leading some employers to bring in women and teens to do what has historically been work for adult men – and creating more inclusive workplaces as a result.
According to preliminary survey results released last week by the American Chamber of Commerce and Industry in Ukraine (AmCham), Ukrainian businesses have suffered a major impact on their ability to maintain or hire a workforce since the Russian full-scale invasion of Ukraine in 2022.
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Ukraine has lost over a quarter of its workforce since Russia’s invasion in February 2022, the Ukrainian central bank data has reported.
The AmCham survey found that the main challenges in hiring personnel are:
- a lack of qualified applicants (20%)
- competition for workers (20%)
- mobilization (14%)
- fear that joining the workforce will lead to mobilization (14%)
The survey also found that “50% of companies want to expand opportunities for veterans as a way to adapt to changes in the labor market.”
In response to the survey, together with IREX, AmCham conducted a round table with representatives of the business community, government and NGO sector, education sector, which “reflected on current needs in overcoming human capital challenges and effective strategies for adapting the Ukrainian labor market to recent changes.”
The roundtable recommended:
- upskilling and reskilling both young people and older workers
- better matching specific skills to businesses’ needs
- better transitioning veterans to civilian life and the labor market
- creating more inclusive working spaces and infrastructure to meet the needs of veterans and people with disabilities
- developing greater digital capacity among students and workers
- introducing psychosocial support to workplaces
In terms of mobilization, there appears to be a two-fold impact on the labor market. First is the physical fact of 25- to 60-year-old men being brought into military service, following the passage of relevant legislation in late 2023, at the rate of some 30,000 per month.
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Second is the anecdotal phenomenon of an unknown number of eligible men who are effectively being “hermits in their homes” to avoid mobilization authorities in public places. Relatedly, some men are apparently opting for informal, cash-based work rather than risk mobilization by being part of workplace databases.
In this challenging context, some employers are also innovating in their recruitment and hiring practices, including finding and employing more women for traditionally male roles, as well as more young people.
Agromat is a leading chain of high-quality toilet equipment and tile supplies with more than 20 outlets across Ukraine. It has an extensive supply chain throughout Ukraine.
According to Iryna Gnutova, their Human Resources Director, during the period of the full-scale invasion, about 5% of its truck drivers have been mobilized.
“Many Ukrainian companies have encountered similar challenges, leading to a surge in job openings, while the number of job seekers has decreased,” Gnutova said. “This situation forced us to seek new, unconventional solutions.”
Among those new solutions is positioning the company as a preferred employer for women. Agromat has recently recruited an in-take of women candidates who are now undergoing training as truck drivers and forklift operators, followed by guaranteed employment.
“The main advantage for women is the supportive and accommodating work environment we create, considering each employee’s individual needs, especially during the adaptation phase,” Gnutova said. “We offer competitive salaries and comprehensive training, including practical lessons, mentorship, and support. Our employees have the opportunity to work with modern equipment and new vehicles. We strive to create conditions where every woman can realize her potential.”
One of the new trainees and future employees is the wife of a truck driver, who would occasionally accompany him on trips, but has now decided to change her profession. Her day now looks very different to her previous job in education.
“In a typical workday for a female truck driver, she has the same duties as her male colleagues, including overseeing the loading of goods onto the vehicle, planning the route, delivering cargo to clients on time, and supervising the unloading of goods at the destination. Throughout the workday, she interacts with dispatchers, receives tasks, adjusts routes when necessary, and manages logistics documentation that accompanies each delivery,” Gnutova said.
In terms of teenagers, Silpo, one of Ukraine’s major supermarket chains, is more actively hiring teenagers for entry-level jobs in its stores and has launched a specialized internship program for students, according to Reuters.
Mobile phone operator Vodafone repackaged its youth program, creating an opportunity for about 50 teenagers in 12 cities to get their first job experience.
In addition to workplaces becoming more inclusive and diverse, labor market shortages have also led employers to increase wages, which have been notoriously low in Ukraine. The average monthly wage is now about Hr.20,000 ($470) compared to about Hr.14,500 ($350) a year ago.
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