Workers in the shadows: Why is there a labor shortage in the country and what salaries are being offered to Ukrainians today?

Specialist Shortages: Insights from New Research

"In the public sector, it is clear that there is a shortage of military personnel, as well as teachers and doctors. This shortage existed even before the war. Now, more than ever, it’s pronounced, especially since traditionally most teachers are women, and many have left the country. The same situation applies to doctors; there is a pressing need for more of them. And when it comes to the business sector, as always, there are numerous vacancies in the service industry. This sector is in high demand. The second most in-demand sector is retail. The majority of vacancies are in sales positions (salesperson, sales consultant). Everyone wants to sell their goods and services. Traditionally, there is also a lack of builders and drivers," — stated Mikhailov.

If we talk about the business sector, as always, there are many vacancies in the service industry. This sector remains the number one in demand.

Indeed, the labor market is in need of many skilled workers, according to new data from Work.ua. The leading category in the labor market still belongs to "Skilled Trades and Manufacturing," offering job seekers 20,992 vacancies (+1% from September). Meanwhile, the "Service Sector" has slipped to second place (20,343 vacancies, -4% from September).

"All skilled and engineering professions are in short supply. There is a significant lack of specialists in auto repair (mechanics and auto technicians) and technical roles. It is very challenging to find them in both large cities and regional centers. This is currently a major issue, as many individuals are serving in the Armed Forces, while many men fear mobilization and simply go 'underground.',” added HR expert and owner of the HR agency, Dominika Ivanova-Bekar.

The top ten most in-demand professions remain stable: loader, driver, cashier, warehouse worker, cook, sales manager, barista, sales consultant, laborer, accountant.

"Traditionally, men have made up the majority of the workforce in Ukraine. During the war, the situation changed: some are serving in the army, while others have left. Men have started to avoid official employment to evade conscription. Vacancies that were predominantly filled by men are difficult to fill with women. Moreover, positions in heavy industry and agriculture, such as truck drivers, require physical strength. These sectors need men," remarked Vitaly Mikhailov.

Some agricultural companies are introducing training for women in professions that were previously held only by men, adds PR manager of Work.ua, Victoria Belyakova. For example, boiler operator and production operator. These vacancies are also being offered to women.

Ukrainian labor market experts assert that in general, in 2024, there will be a severe shortage of skilled labor in frontline areas. Military needs continue to be met by mobilizing workers from the civilian sector.

Companies are addressing the labor shortage in various ways: automating workplaces, attracting older individuals, and reformatting and adapting work directions.

"If we talk about retail, those with a budget are looking towards automation. Those tasks that can be reduced or automated are being cut and automated. They are attracting people aged 55 and older. When it comes to 'blue-collar' jobs, they are considering how to adapt historically male professions to suit women. For instance, in logistics or warehouse roles... Large companies are developing special programs to attract women and automate processes," explained the expert.

Where in Ukraine is the Most Work Available

The defense forces have secured a position among the top five sectors generating the most job vacancies, with retail remaining the leader.

• "Retail" — 17,521 job offers;
• "Wholesale trade, distribution, import, export" — 10,171;
• "Hospitality and restaurant business" — 9,868;
• "Defense forces" — 6,983;
• "Medicine, healthcare, pharmacies" — 6,503.

Salaries are Rising: What’s Happening with Wages and How Companies are Tackling Shortages

According to analytical data from Work.ua, increasing salaries remain one of the tools that employers are using to overcome the labor shortage in 2024, as the deficit in certain sectors is only intensifying.

As a result, the average income of Ukrainians has risen by 1,000 UAH. Thus, in October, the average salary offered by the labor market to job seekers increased by 5% to 22,500 UAH. This salary is primarily offered in the following leading regions:

• Kiev — 25,000 UAH (+ 1,050 UAH from September);
• Lviv — 22,500 UAH (+ 1,500 UAH);
• Dnipropetrovsk — 21,000 UAH (+ 1,000 UAH);
• Odessa — 21,000 UAH (+ 1,000 UAH);
• Kharkiv — 20,000 UAH (+ 1,000 UAH).

Wages for security personnel and workers in the security sector have also increased. In this category, the growth was 33% (from 45,000 UAH to 60,000 UAH). Additionally, incomes in the agricultural sector have risen, with an average of 24,000 UAH, which is 7% higher than in September. Following this are construction (27,500 UAH), cultural sector (21,500 UAH), and medicine, pharmaceuticals (22,500 UAH).

According to the study, the number of responses to vacancies in the Defense Forces has increased. In October, 42% of responses to Defense Forces vacancies came from women, while 58% were from men.

Meanwhile, in the regions, the shortage of public transport drivers reaches at least 30%. The Ministry of Infrastructure is already developing a nationwide program for training women to operate large vehicles.