KYIV, 2nd October 2024. – IREX and its partner, the American Chamber of Commerce in Ukraine (AmCham Ukraine), held a round table discussion of current human capital challenges and opportunities in Ukraine. The discussion was based on a survey recently introduced that asked businesses about the greatest challenges they are facing in hiring and retaining employees, skill sets and positions that are hardest to fill, what businesses are doing to adapt to changes in the labor market, and what more can be done.
According to the preliminary survey results, 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. The main challenges in hiring personnel are a lack of qualified applicants (20%), competition for workers (20%), mobilization (14%), and fear that joining the workforce will lead to mobilization (14%).
The round table participants, who represented the business community, government and NGO sector, education entities, reflected on current needs in overcoming human capital challenges and effective strategies for adapting the Ukrainian labor market to the recent changes.
Investing in education and training was mentioned as one of the solutions to get qualified personnel. This includes upskilling or reskilling education both for young people and older workers, as well as collaboration between professional and technical education institutions and businesses to ensure that students receive specific skills that will respond to the businesses’ demands.
The participants also mentioned the need for decentralizing the work of professional and technical education institutions to match them with the actual needs of businesses in their respective communities, as each region in Ukraine has its own cluster specialization and specific demand for qualified workers.
According to the preliminary survey results, 50% of companies want to expand opportunities for veterans as a way to adapt to changes in the labor market. However, several participants mentioned a need to support veteran’s transition to civilian life before they are ready to join the labor market; as well as creating inclusive working spaces and adapting infrastructures to veterans’ specific needs.
In general, investing in inclusivity can also bring positive changes to the Ukrainian labor market and it can include everything from providing education and training to people with disabilities, to creating inclusive infrastructures.
Furthermore, the participants stressed that Ukraine has a strong potential for creating effective digital solutions. It is already creating high-level products that contribute to the global economy. Investing in development of digital and technology skills in students or workers, and digital solutions for business can also help addressing the needs of Ukrainian market.
Other suggestions included investments in young people as they transition to work life, support to women leaders, and psychosocial support programs for employees.
The discussion revealed that some of these initiatives have already been taken and have shown positive results. However, a more comprehensive approach and collaboration between all the actors, with the government as a key leader, are needed to create effective strategies for adapting to recent changes in the labor market and to ensure Ukraine's long-term prosperity and resilience.
Background
About IREX:
IREX works in over 1,400 communities in all government-controlled regions of Ukraine, with youth, women, IDPs, and veterans, having first-hand experience of the challenges people are facing to find meaningful employment and the crises in communities to keep the economy going.
IREX works with civil society organizations, youth centers, employers and government bodies to equip young Ukrainians with the skills, knowledge, and connections to improve their economic opportunities.
Through an HR Guide created together with our partner, Veteran Hub, IREX is equipping businesses with resources and guidance to welcome veterans back into the civilian workplace.
However, given the unprecedented human capital challenges as a result of Russia’s invasion, a lot more needs to be done, in partnership with the private sector who drive job creation and growth, on the one hand to address immediate workforce needs caused by war to keep the economy, and, on the other hand, to ensure the long-term prosperity and resilience of Ukraine.
About AmCham Ukraine:
The American Chamber of Commerce is Ukraine's most influential international business association that has been serving 600+ members in Ukraine since 1992, delivering the shared voice of US, international, and Ukrainian companies, who invested over $50 billion in Ukraine and remain committed to the country. For more information, please visit AmCham's website.
