Labor shortage has become a record problem for Ukrainian businesses

In November, 64% of Ukrainian companies reported a labor shortage due to mobilization or departure of employees. This is the highest figure in the entire history of observations.

This is evidenced by data from a monthly survey of businesses conducted by the Institute for Economic Research and Policy Consulting.

It should be noted that in October, 57% of companies reported a shortage of workers, and in September, 61%.

«At the same time, the problem of finding qualified workers is growing. On the one hand, there is a limited supply, but we also see an increase in demand for labor, which is a very positive signal and indicates a recovery, at least not a deterioration, in economic activity,» noted IER Director Oksana Kuziakiv.

55.5% of respondents reported difficulties in finding qualified employees, compared to 51.9% in October. At the same time, unqualified personnel are difficult to find for 38.9% of businesses, compared to 34.8% in October.

Survey results. Infographics: IER

In the labor market, most companies do not plan any changes. However, according to research, positive phenomena are also noticeable: the share of companies with plans to increase employment in the next 3-4 months continued to grow — from 13.8% to 14.1%. In addition, the share of businesses planning to increase the number of employees on forced leave decreased from 14.4% to 4.2%.

According to the survey, the top three hurdlers remained the same as in October, albeit in a different order.

«The first place was taken by «labor shortage» with a record figure of 64%. In second place was «it is dangerous to work». In third place was «rising prices for raw materials, materials and goods’» The value of this indicator increased from 43% to 48%, possibly due to inflationary expectations,» said Yevhen Anhel, senior researcher at the IER.

There are also regional differences in the perception of this problem. In the west of the country, enterprises were least likely to mention «occupational hazards,» while in regions near the front line the situation is the opposite. In Poltava, Dnipropetrovsk, and Zaporizhzhia regions, almost 100% of respondents spoke about physical hazards in their work.

Survey results. Infographics: IER

The IER's New Monthly Enterprises Survey (#NRES) involves about 500 Ukrainian industrial enterprises located in 21 of Ukraine's 27 regions. The survey has been conducted on a monthly basis since May 2022. The 31st wave of the survey was conducted on November 18-29, 2024.

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