Introduction
War and hostilities usually cause significant transformational changes in the field of labour relations, which is a complex and multifaceted process. The effects of the war in Ukraine on the economy and social sphere have had a significant impact on a range of different aspects of labour activity and relations between employees and employers. One of the biggest consequences has been the decline in employment due to the destruction of businesses, evacuation of the population and changes in the production structure. This has led to an increase in unemployment and related social problems and economic instability. There has also been a decline in wages due to reduced production, lower demand and inflation. Working conditions and social guarantees have also deteriorated as a result of the hostilities, creating uncertainty for employees. Furthermore, the war has brought changes in working hours, especially in the east of the country. Workers additionally face restrictions on movement, power outages and safety hazards at work. The structure of the labour market has also undergone a transformation. Workers have had to look for jobs in other regions and learn new professions. There is therefore a need for adequate training and support for their adaptation. Finally, there has been a significant impact on the psychological state of employees. Stress, anxiety and psychological burden have a negative impact on their productivity and well-being.
The international community has condemned Russia’s temporary occupation of Ukraine’s territories and taken measures to punish Russia for its actions, with economic support from the United States and its allies for Ukraine in its resistance to the Russian Federation and the Lukashenko regime in Belarus. The United States and the European Union have imposed sanctions on Russia, including on major Russian financial institutions and sovereign debt, banned imports of key technologies to Russia, and targeted financial networks and assets of Russian and Belarusian elites, including President Putin and members of the Russian Security Council (United States Department of State, n.d.)
The occupation of the territories has led to a significant economic downturn and an increase in unemployment, which has become a major challenge for the country. Employees have lost their jobs, and those who have retained their employment have faced changing qualification requirements and unstable working conditions. This situation calls for effective strategies to support workers, restore economic development and build sustainable peace after the end of the conflict. This is one of the challenges Ukraine has faced during the war with Russia.
Thus, the study of the transformation of labour relations during the war is important for developing strategies to support workers and economic recovery after the conflict.
The armed conflict that began in 2014 in the east of the country between Ukraine and Russia and escalated into a full-scale war in 2022 has thus had serious consequences for Ukrainian society, the economy and occupation of parts of Donetsk and Luhansk regions have contributed to the serious consequences of the war on Ukrainian society, economy and labour market (Simmons & Chernova, 2022; BBC News Ukraine 2023a).
In September 2022, Russian President Vladimir Putin signed ‘agreements on accession to the Russian Federation’ of new entities— the occupied Ukrainian territories, namely Donetsk and Luhansk regions, as well as parts of the Zaporizhzhia and Kherson regions (BBC News Ukraine 2023a).
According to the President of Ukraine, Volodymyr Zelensky, as of 2 June 2022 about 20% of Ukraine’s territory was under the temporary occupation of Russian troops, and the fighting had spread to more than 2,600 settlements (Voytyuk, 2022).
According to Article 3 of the Law of Ukraine ‘On Ensuring the Rights and Freedoms of Citizens and the Legal Regime in the Temporarily Occupied Territory of Ukraine’, the temporarily occupied territory of Ukraine is defined as the land territory of the territories of Ukraine temporarily occupied by the Russian Federation, water bodies or parts thereof located in these territories, another land territory of Ukraine, inland sea waters and the territorial sea of Ukraine, recognised as temporarily occupied under martial law by a decision of the National Security and Defence Council of Ukraine, enacted by a decree of the President of Ukraine. The subsoil under the territories and the airspace above these territories are also recognised as temporarily occupied (Parliament of Ukraine, 2023).
The humanitarian crisis triggered by these developments was acute. The war led to the internal displacement of millions of people and the creation of refugees. This made it difficult to meet basic needs, including shelter, food, medical care and education.
The cost of the war can be expressed in terms of casualties, erased economic potential and damage to the country’s most important infrastructure. According to the Kyiv School of Economics, the losses from the war in Ukraine amount to US$80.4 billion, with weekly increases of between US$8 and US$12 billion. If the war continues, this figure could exceed $135 billion (Jennings, 2022).
The war has also had a serious impact on the demographic situation in Ukraine. According to the EU Council, as a result of the war and depending on its duration, Ukraine’s population could decline by 24–34%. As of 1 January 2022, Ukraine had 34.5 million citizens, but by the end of August 2022, this had fallen to only 27.8 million (Express online, 2023).
The humanitarian crisis in Ukraine is also linked to the destruction of infrastructure and housing in the war zone, the displacement of people, including internally displaced persons, and a decline in living standards.
According to the UN Resident Coordinator and Humanitarian Coordinator for Ukraine, Denise Brown, there has been ‘complete devastation’ in the war-affected areas and the scale of the humanitarian crisis is constantly changing (TSN.ua, 2022).
It is clear that additional efforts and resources are needed to address the challenges posed by the humanitarian crisis. However, it should also be noted that the humanitarian crisis also exacerbates labour relations issues. The destruction of infrastructure and housing stock, displacement and a decline in living standards create difficult conditions for employees and businesses. In particular, internally displaced persons are in a vulnerable position and require additional support.
Added to this problem has been the serious consequences of the war for Ukraine’s economy. According to experts from the World Bank and the European Commission, the damage caused by the war in Ukraine between 24 February 2022 and 24 February 2023 was estimated at $134.7 billion, and the reconstruction needs were estimated at $410.6 billion (LB.ua, 2023). The cost of rebuilding Ukraine and its economy was already estimated at around USD 349 billion. The war also led to a decline in Ukraine’s GDP by more than 35% in 2022, due to the massive destruction of infrastructure, including rail and other connections to neighbouring countries, the road network and bridges (DW, 2022).
Furthermore, the war has had an impact on inflation and rising food and energy prices, contributing to increased poverty in the country (BBC News Ukraine, 2023b) exacerbating the effects of the decline in living standards and growth in the number of internally displaced persons (DW, 2022).
The Ukrainian government is trying to mitigate the economic impact of the war by attracting domestic investment. This includes issuing war bonds to citizens, creating special investment funds, and encouraging companies to invest in strategic sectors through tax breaks and public-private partnership programs. (LB.ua, 2023). However, addressing the economic consequences of the war requires significant efforts and resources. These include addressing the effects of production losses, destroyed infrastructure, the high costs of military operations and rehabilitation of territories, loss of foreign investment, and trade restrictions. These developments have led to a reduction in employment, lower wages and a general economic downturn.
In particular, the war and its aftermath have had a negative impact on labour relations in Ukraine. First, the hostilities contributed to an increase in unemployment. The war has led to a decline in employment in the country, in particular due to lower production and lower demand for labour. According to the Ministry of Economy, the number of unemployed stood at 2.6 million in early 2023, while the National Bank Of Ukraine has estimated the number to be around 4.2–4.8 million (National Institute for Strategic Studies, 2023). Many businesses have been destroyed or forced to cease operations, leading to layoffs and an increase in unemployment.
The war also led to a change of employment for many people, in particular due to evacuation from the war zone and relocation to other regions of the country. The total number of registered internally displaced persons as of 31 January 2023 was 3,621,723, with the majority of displaced persons coming from the Donetsk, Kharkiv and Luhansk regions. Among them, 60% were women and 40% were men (DTM Ukraine, 2023).
There was also a systematic violation of the labour rights of the parties to labour relations. The war led to a decrease in wages in various sectors of the economy, in particular due to lower production and reduced demand for labour. It also affected the level of social protection of employees, related in particular to a reduction in the number of social programmes and state support. The war has contributed to changes in working conditions for many employees, including changes in employment (described below) and longer working hours. Safe and healthy working conditions have been significantly affected, in particular due to a decrease in workplace safety and increased health risks.
These are just some of the ways in which the war has affected labour relations. The Government of Ukraine has been trying to mitigate the impact of the war on labour relations and protect the labour rights of employees by implementing social programmes and measures to support the employment and social protection of the population. In particular, the government has introduced a number of regulatory changes to the country’s labour legislation.
Two important changes in the labour legislation of Ukraine that have taken place during the war can be identified. First, the possibility to suspend an employment contract has been introduced. The Law of Ukraine ‘On the Organisation of Labour Relations under Martial Law’ introduced the possibility of suspending an employment contract for the period of martial law (YURLIGA, 2023). Second, the Law of Ukraine ‘On the Organisation of Labour Relations under Martial Law’ also establishes specific labour conditions for the period of martial law, in particular, an increase in the working day and a reduction in the duration of holidays (Law of Ukraine, 2022).
In summary, the war has had a serious impact on labour relations in Ukraine. The negative effects of the war include lower wages, changes in working conditions, and a decline in social protection and safety in the workplace. The Government of Ukraine has been taking steps to mitigate the impact of the war on labour relations by introducing social programmes and regulatory changes to labour legislation, including the possibility of suspension of employment contracts for the period of martial law and specific working conditions during this period.
Overcoming the effects of the war on labour relations requires a wide range of measures and support. Effective economic rehabilitation, job creation, upskilling and ensuring stable working conditions are important tasks. In addition, the development and implementation of strategies to support internally displaced persons and affected communities is also necessary. Furthermore, the international community has an important role to play in providing assistance and coordinating efforts to address labour-related issues after the war. Providing humanitarian aid, economic support and working together to restore peace and stability are essential elements to overcome this difficult situation.
Addressing the consequences of the war for labour relations will thus require a long-term and comprehensive approach, as well as the active cooperation of all stakeholders.
Methodology
The research on which this article is based aimed to study the transformation of the labour market in Ukraine during the war. The main objectives were to analyse the changes that took place in the labour market during active hostilities in Ukraine in order to identify the main challenges and problems faced by the state in restoring the labour market under martial law.
To address this challenge, the methodology of the study was based on the three main scientific methods. First, a theoretical analysis of literature sources was conducted: a review and analysis of available theoretical sources on the topic of the study, including previous scientific articles and publications on the impact of war on labour relations. Second, an analysis was carried out of the relevant regulations, laws and other official documents regulating labour relations in Ukraine were. The third component was a statistical analysis of data from official sources characterising the state of the labour market.
These scientific methods were combined to comprehensively study the problem of labour market transformation in the context of war.
Literature review
There have been many military conflicts in history that have had a significant impact on the transformation of labour relations and labour productivity in general, but the war between Ukraine and Russia is among the largest in scale and consequences since the Second World War.
In this context, it is interesting to analyse the impacts of that war on the United States. The first dimension of this is the scale of the conflict. The Second World War was a global conflict that had a significant impact on the global economy, including that of the United States as one of the key players. The US experience during this period can provide valuable insights into the impact of a large-scale war on the labour market and productivity. Local conflicts, while important, have a smaller impact on the global economy. A second factor is the availability of data and research; the Second World War is a well-researched period with a large amount of available statistics and academic work. This allows us to draw on reliable sources and draw reasonable conclusions. For more recent local conflicts, there may be less available data and in-depth research. A third factor is the similarity of economic systems: the US economy during the Second World War, despite the different historical periods, has more in common with the modern Ukrainian economy than the economies of countries involved in recent local conflicts. This makes the US experience particularly relevant for analysis and comparison. A fourth factor is the duration and intensity of the conflict: the Second World War was a long and intense conflict that had a significant impact on the US economy and labour market. Studying this therefore allows us to better understand the long-term effects of the war. Localised conflicts, while important, often have shorter durations and less impact on the economy as a whole, and thus using the US experience in the Second World War allows us to look at the problem from a historical perspective and trace long-term trends. This can be useful for understanding the potential long-term effects of the current war in Ukraine.
One study (Field, 2023) on the decline in labour productivity in the United States between 1941 and 1948 showed that the United States entered the war with a high level of labour productivity, but during the war productivity declined due to factors such as labour shortages and the diversion of resources to the war effort. This author questions the common belief that the war had a positive impact on productivity. The author's analysis, which considers factors such as learning from military production and technology spillovers from the military to the civilian sector, challenges this widely held notion.
According to the data, the growth rate of total factor productivity in the private non-agricultural sector was lower in 1941–48 than before or after this period. The author argues that the mobilisation and demobilisation of the economy had a negative shock on productivity (Field, 2023).
He argues that most technological progress occurred before the war, and the skills acquired in the production of war goods were of little use in peacetime. Therefore, the war slowed down the growth of potential output rather than stimulating it. Field therefore proposes to reconsider the notion of the positive impact of the war on productivity in the United States, based on the analysis of data and economic processes of the period.
Jola-Sanchez (2022) came to a somewhat different conclusion in his study, in which he investigated the impact of the civil war on the productivity of firms in Colombia. The main findings of this study were that service companies in war-affected cities demonstrate 14–17% higher productivity than manufacturing firms. The positive effect for these companies is explained by a higher level of intellectual capital (know-how, patents) due to the need to adapt to the conditions of war. As for the negative effects of war (destruction, violence), these have less impact on service firms than on manufacturing ones (Jola-Sanchez, 2022). This author therefore concludes that war has different effects on the productivity of firms depending on the sector of activity.
Both these authors emphasise that labour productivity is a key factor that determines the transformation of labour relations during wartime. High productivity helps to optimise resources, support the economy and ensure stability. Scepticism about the assertion that labour productivity is the key factor influencing the transformation of labour relations during wartime arises from several considerations. Wartime labour relations are shaped by numerous factors beyond productivity, such as shifts in employment due to conscription, displacement, and infrastructure damage. The sudden disruptions in labour markets, including rising unemployment and forced migration, can significantly impact labour relations, as can shifting economic priorities that divert resources toward defence. Government interventions to stabilise or mobilise the economy also profoundly affect labour relations, while demographic changes in the workforce composition due to conscription or displacement lead to shifts that influence labour relations independently of productivity metrics. All these factors contribute to a complex wartime labour environment where productivity is just one of many influential elements.
Another study on the impact of the Second World War on productivity growth in the United States found that the period of military mobilisation and demobilisation that lasted from 1941 to 1948 had a positive impact on productivity growth in the long run, despite short-term disruptions (Field, 2023).
To regulate some areas of labour relations, the Government of Ukraine has introduced a number of changes and designed a path for the development and adaptation of labour relations under martial law. In his policy report, 15 March 2024 Sergiy Guz outlined the socio-economic profiles and labour market integration of Ukrainian refugees in OECD countries. The Ukrainian government recognises that the conflict in Ukraine and the displacement of citizens have led to various significant changes in this area. However, transforming the economy to improve labour rights and trade union participation will require fundamental structural changes (openDemocracy, 2022).
In the context of the hostilities in Ukraine, the government has restricted labour rights and introduced laws that limit them. The ILO (2022a) has noted that even before the war, labour legislation in Ukraine was flawed and poorly enforced by the state (ILO, 2022a). The ILO has also stressed that the effects of these policies are manifested in inflation, lower real wages, rising inequality, reduced policy choices and increased debt.
The restrictions on freedom of association have also been influenced by the actions of Russian Federation agents in the occupied territories, which have further restricted workers’ rights (OECD, 2024). However, some argue that the war should not be used as an excuse to deprive workers of their rights, and that decent working conditions should be maintained (IPS Journal, 2024).
Overall, the Ukrainian government has restricted a number of labour rights during the war, and the situation remains uncertain.
Some issues related to the impact of the war on labour relations have been addressed by Ukrainian researchers. One of them, Tutova (2023) focused her research on the state of the labour market in the context of a full-scale war, identifying its features and developing recommendations for ensuring the effective functioning of the labour market after the war. The article presents and analyses statistical data on the number of refugees who left Ukraine for other countries since the beginning of the full-scale invasion, their adaptation, employment in other countries and intentions to return to Ukraine. The impact of internally displaced persons (IDPs) on the labour market is also determined, including the number of IDPs; the regions from which most people have moved and the regions that have received the most people. The article analyses the dynamics of wages and financial stability of companies in the first months of the war, using the example of small and medium-sized businesses. Data on the unemployment rate, the number of applicants per vacancy, and the geography of vacancies are also considered and analysed. The author draws conclusions about the impact of the war on the labour market, identifies the main factors of pressure on the market and offers recommendations that will ensure the effective functioning of the labour market in the post-war period (Tutova, 2023).
Gudz (2023) also investigated the impact of martial law on socio-economic processes in Ukraine. She points out that the war conditions have significantly changed the organisation of these processes and created major challenges for the stability of the economy. Among the main problems highlighted in this research is the imbalance in the labour market whereby the war has led to the loss of the ability to manage supply and demand in the labour market. This has led to labour shortages in certain sectors and regions. People are actively migrating and looking for opportunities abroad for the sake of security, which has led to an outflow of skilled professionals. The loss of economic resilience of businesses during the war has led to a reduction in the number of vacancies and increasing threats of bankruptcy. An important problem is the rising unemployment rate, which is worsening due to inflation, high prices and a slowdown in economic activity. This study emphasises that these factors have caused unprecedented changes in the labour market in Ukraine, and concludes that optimising this situation is necessary to achieve overall stability and predictability of the country’s economy (Gudz, 2023).
Another significant contribution to this literature has been made by O. Handiy and V. Shestopalov (2022). This study, entitled ‘Unemployment during the war: Analytical aspects’, analyses the problem of unemployment in the context of the war in Ukraine. It analyses statistical data on the unemployment rate in Ukraine during the war, identifies the causes of unemployment in the war and their impact on the labour market and overviews the measures taken by the state to reduce unemployment in the war. The authors point out that war has a serious impact on the labour market and can lead to an increase in unemployment and draw conclusions and recommendations for further actions of the state in the field of reducing unemployment in the war including the need to take effective measures to reduce unemployment in times of war and ensure social protection of the population.
A further important contribution to the development of this topic is a study of the impact of martial law on labour relations in Ukraine by Yaroshenko, Chanysheva, Maliukha, Melnyk and Burniagina (2023). This investigation identifies significant changes in labour processes in various institutions and organisations due to the introduction of martial law and the ongoing conflict. It also analyses legislative changes related to the relationship between employees and employers, examining their impact on labour rights and freedoms. In particular, it addresses changes in workplace organisation, job transfers, leave policies, overtime and night work, dismissals, contractual terms and conditions, remuneration and employment of certain categories of employees. The study contains recommendations for improving labour relations legislation and increasing overall efficiency in this area (Yaroshenko, 2023).
Based on the research of domestic scholars on the impact of the Russian–Ukrainian war on the labour market and labour relations, it can be concluded that the war has caused unprecedented changes in the functioning of the national employment system. The key problems identified by the researchers are an increase in unemployment due to the reduction of production and the closure of enterprises, an imbalance in labour supply and demand due to migration processes and the outflow of skilled personnel, deteriorating working conditions and a decrease in the level of social protection of employees. These Ukrainian researchers emphasise the need to develop and implement a comprehensive state strategy for adapting the labour market to the conditions of war, which should include measures to stimulate entrepreneurial activity, support business relocation, employment of internally displaced persons, and reform of the vocational education system in line with the needs of the economy. An important area for further research is to analyse the effectiveness of the government’s initiatives in the field of employment regulation and develop recommendations for improving the institutional environment for the labour market in the post-war recovery.
Despite a certain number of studies on the impact of the war on labour relations in Ukraine, this topic remains insufficiently studied and requires further research in four key areas.
The first of these is the impact of war on motivation and productivity. There is a lack of comprehensive research on how the war affects employee motivation, job satisfaction, loyalty to the employer, and willingness to work at full capacity.
Second, there is a need for further research into the psychological consequences of war for employees. The impact of post-traumatic stress disorder, anxiety, and depression on productivity and safety during war remains insufficiently studied.
A third topic on which additional research is needed is the impact of the war on social and labour relations and collective bargaining. There is a lack of analysis of how the war has changed the nature of relations between employees and employers, trade unions; how collective bargaining processes are taking place.
Fourth, research is needed on the effectiveness of state policy in the area of employment, employment of internally displaced persons, and unemployment reduction.
More generally, there is a need for foresight, including developing roadmaps for restoring the labour market after the war. It is important to conduct a scientific modelling of the labour market recovery process and develop recommendations for government agencies.
Labour market transformation during martial law
In times of war, labour productivity turns out to be a key factor that has a decisive impact on the transformation of labour relations. High labour productivity helps to optimise resources and ensure the efficiency of business processes in the face of unforeseen circumstances that may be caused by military operations. This is important to ensure sustainable production, support the economy and provide resources for military operations. In addition, high labour productivity can reduce social tensions and contribute to social stability in the context of military conflicts, and play an important role in economic recovery after a war. Thus, attention to labour productivity during wartime is essential to ensure effective transformation of labour relations and support for sustainable development in the context of conflict and its aftermath.
The impact of war on motivation and labour productivity is one of the key factors that determines the efficiency of an economy in a military conflict. According to some researchers (Bauer et al., 2016), war poses unique challenges to maintaining employee motivation, as it is accompanied by high levels of uncertainty, stress and security threats. In such circumstances, traditional incentive methods such as financial rewards or career development may not be effective enough (Anderson et al., 2022).
Instead, other scholars, such as Tsymbaliuk (2022) argue that in times of war, intangible motivation factors such as a sense of belonging to a common cause, patriotism, and solidarity with colleagues and society come to the fore. These are the factors that can keep employees engaged and committed even in the most difficult circumstances. According to Bauer et al. (2016), without taking into account such motivational features, it is impossible to develop effective measures to maintain and restore production during the war.
At the same time, other researchers, such as Vakhnenko and Chop (2022) note that the welfare of employees in a military conflict fades into the background, giving way to more pressing needs. In extreme situations, the priority is to meet basic needs such as security, food, and medical care (Okuneviciute Neverauskiene & Pranskeviciute, 2022). In addition, a key task is to preserve jobs and prevent mass unemployment, which can have devastating consequences for social stability (Tsymbaliuk, 2022).
Thus, studying the impact of war on motivation and productivity is a prerequisite for developing effective strategies for adapting the economy to the conditions of military conflict. Without an understanding of the specifics of labour behaviour in extreme situations, it is impossible to ensure sustainability and recovery of production. At the same time, the welfare of employees, while important, may be a secondary priority to the more urgent tasks of survival and preservation of the country’s labour potential.
Looking back at the realities that have taken place during the war in Ukraine, businesses and the labour market have undergone significant transformations while attempting to adapt to the new realities of martial law. Despite the enormous challenges, some sectors and companies have shown remarkable resilience and adaptability. At the beginning of 2022, especially in February and March, labour market activity declined sharply. As a result, many businesses ceased operations, leading to massive job losses. Some companies were able to relocate their staff or part of it to safe regions or other countries and continue operations, but this was mainly the case in the IT sector. Communication with employees who left their homes during the first, ‘shock’ period of the war became one of the most important priorities for most companies. Caring for employees has taken on a new meaning and distinct relevance. Within days, many Ukrainian companies were actively implementing measures such as constant communication with employees, psychological support, social guarantees, timely payment of salaries and advance payments.
Among the most common measures was the creation of special chats for employees, where effective vertical and horizontal communication was carried out. Many company executives actively supported their employees and provided up-to-date information on company operations. These chats collected information on the location of employees, their needs for assistance, and changes in location, and also facilitated active communication between colleagues and mutual support.
The psychological effects of war on employees have an extremely serious impact on their ability to perform their professional duties, adapt to new working conditions and maintain the required level of safety. Studies show that the prevalence of post-traumatic stress disorders among civilians in military conflict zones can reach 30–40% (Cherewick et al., 2016).
In addition, anxiety and depression are also common psychological reactions to the stressful events of war. These psychological disorders significantly reduce a person’s ability to work, affecting concentration, memory, motivation and overall productivity (Nandi, Crombach, Elbert & Weierstall, 2018). Without proper attention to the psychological state of employees, it is impossible to ensure the effective functioning of labour collectives under stressful conditions of war (Sandal, Endresen, Vaernes & Ursin, 1999).
Thus, the study of the psychological consequences of war for employees is a critical aspect of research on labour relations in military conflict. Without understanding the scale and specifics of the impact of traumatic experiences on people’s mental health and ability to work, it is impossible to develop effective strategies to support and preserve labour potential during war. War conditions have highlighted the need to support and communicate with employees affected by the conflict. Psychological support, security and salary payments have become more important. Effective internal communication through special chats helped to maintain a sense of community and provide the necessary assistance.
The war in Ukraine has thus highlighted the importance of flexibility, adaptability and mutual support in business and the labour market. It has also highlighted the critical need to provide psychological assistance and social support to employees as a key element of maintaining labour potential and productivity in times of crisis.
The next step is to examine the impact of war on social and labour relations and collective bargaining, which are crucial for understanding the transformations that occur in the interaction between employees and employers in times of war. The war significantly changes the balance of power in the labour market, threatening the very possibility of constructive social dialogue.
In the face of uncertainty and economic instability, employers often resort to cutting staff costs, limiting social guarantees and curtailing collective bargaining. In turn, employees find themselves in an extremely vulnerable position, losing leverage over their employers and the ability to protect their own conditions and those of their colleagues. In addition, war often leads to an increase in informal employment, which further complicates the regulation of social and labour relations and the enforcement of labour rights. In such circumstances, traditional mechanisms of collective bargaining and collective agreements may prove ineffective or inaccessible to a significant number of employees.
At the same time, it is the nature of social and labour relations and the ability of the parties to engage in constructive dialogue that will determine the ability of the economy to adapt to the war and recover in the post-war period. Preserving the basic principles of social partnership, such as equality of the parties, voluntary acceptance of obligations, mutual responsibility, etc., is a prerequisite for ensuring stability and resilience of labour collectives in extreme conditions.
Thus, the study of the impact of war on social and labour relations and collective bargaining is not only theoretical but also practical. Without understanding the specifics of the transformation of interaction between employees and employers in the context of military conflict, it is impossible to develop effective mechanisms for regulating the labour market and ensuring social stability. At the same time, the issue of the balance of power and constructive dialogue between the key actors in labour relations is more important than the welfare of individual employees, as it affects the overall sustainability of the economy and the prospects for post-war recovery.
State regulation of the labour market in times of war is crucial for ensuring social stability and supporting the country’s economy in times of military conflict. According to the International Labour Organization (ILO, 2022b), effective labour market regulation can help mitigate the negative effects of war on workers and their families, as well as facilitate a faster economic recovery after the conflict (ILO, 2016). One of the main objectives of state regulation of the labour market during war is to prevent mass unemployment and maintain incomes. To this end, governments can take various measures, such as subsidising wages, encouraging the creation of temporary jobs, organising public works, etc. In addition, an important area is to support internally displaced persons and their integration into the labour market in the recipient regions.
At the same time, it is important to adapt labour legislation to the conditions of war, ensuring a balance between the interests of employees and employers. This may include issues of remote work, flexible working hours, leave, etc. In Ukraine, for example, the Labour Code has been amended to allow employers to change essential working conditions under martial law without giving two months’ notice to employees as was formerly the case (Law of Ukraine, 2022).
Another important aspect of state regulation is the adaptation of labour legislation to the conditions of war. According to Yaroshenko et al. (2023), changes in legislation should strike a balance between the interests of employees and employers, taking into account the peculiarities of the economy in a military conflict. In particular, the issues of organising remote work, flexible working hours, granting holidays, dismissal of employees, etc., are important.
Many researchers in the field of labour relations (e.g., Brown, 2021; Davis, 2022; Wilson, 2023) emphasise the need to preserve the key principles of social dialogue and collective bargaining even in times of war. The state should act as a mediator and facilitator of interaction between trade unions and employers’ organisations, promoting compromises and collective bargaining at the national, sectoral and local levels.
Another important task of state regulation is to formulate a strategic vision for the development of the labour market in the post-war period. It is already necessary to develop programmes for vocational training and retraining, modernisation of workplaces, stimulation of entrepreneurship and self-employment, etc. These measures should contribute to the fastest possible economic recovery and ensure productive employment after the end of the military conflict.
State regulation of the labour market during wartime is a complex and multifaceted process that requires governments to adopt proactive and balanced policies. The effectiveness of such regulation largely determines a country’s ability to minimise the negative effects of war on the welfare of the population and lay the foundations for post-war economic recovery. At the same time, the key principles should remain the preservation of social dialogue, balancing the interests of employees and employers, and the formation of a strategic vision of labour market development in the long term.
Finally, state regulation should be aimed at supporting social dialogue between trade unions and employers, even in times of war. This allows the parties to reconcile their interests and find compromises on working conditions and social guarantees. In Ukraine, the general, sectoral and territorial agreements that define the basic principles and norms in the field of labour relations have continued to operate during the war (Federation of Trade Unions of Ukraine, 2022).
Thus, state regulation of the labour market during wartime is a complex task that requires concerted efforts by the government, social partners and international organisations. Effective policies in this area can significantly mitigate the negative effects of military conflict on workers and accelerate the country’s economic recovery after the conflict ends. However, the effects of hostilities have significantly altered the labour market, generally having a negative impact
The state’s primary task has been to preserve the operation of critical infrastructure, the defence industry, agriculture and other strategic enterprises. The loss of and damage to production assets and infrastructure, as well as the disruption of supply chains in retail chains, have led to a significant weakening of the labour market potential. This situation led to major disruptions in the labour market and significantly reduced employment opportunities for the majority of Ukrainians
The armed conflict has had a significant impact on production and economic activity, leading to an increase in the number of people working in hazardous and low-paid jobs. There is a risk that most people who want to find work cannot do so officially. In this regard, the shadow economy, which is currently estimated at over 41%, is becoming a livelihood for many Ukrainians. At the same time, employees are becoming more vulnerable due to violations of labour laws, infringement of their labour rights, and deteriorating working conditions (Razumkov Centre, 2022).
The relationship between the armed conflict and the growth of the shadow economy in Ukraine is complex and multifaceted. Studies show that military conflicts create favorable conditions for the expansion of the informal economy (Collier P, Duponchel M. 2010).
First, economic instability caused by war forces businesses to look for ways to minimize risks, often through informal channels. As noted by Vakhnenko and Chop (2022), in times of war, businesses often turn to gray payroll schemes to save jobs.
Second, the weakening of state control in times of war creates opportunities for illegal operations. According to the Razumkov Center (2022), this leads to an increase in the number of labor law violations and deterioration of working conditions.
In addition, the disruption of traditional supply chains encourages the development of informal networks. A study by Gudz (2023) shows that this is especially true for the frontline regions of Ukraine.
Forced displacement is also an important factor. Internally displaced persons are often forced to work unofficially due to lack of documents or formal employment opportunities (Handiy & Shestopalov, 2022).
Finally, the shortage of goods caused by the war stimulates the development of the black market. According to the National Institute for Strategic Studies (2023), this leads to an increase in the share of shadow operations in the economy.
Thus, the armed conflict creates a set of conditions that contribute to the expansion of the shadow economy, which is confirmed by both theoretical studies and practical experience of Ukraine.
In addition, the military conflict has resulted in the loss of a significant number of skilled labourers, not only in terms of migration to neighbouring countries, but also in terms of loss of life (including among healthcare workers, lawyers, teachers, engineers, IT specialists and journalists).
The war has changed the conditions and principles under which the labour market operates, moving it into a more uncertain and dangerous phase. In particular, according to a survey conducted by the European Business Association (EBA), among EBA member companies in March 2022, 43% of companies had financial reserves for several months, 28% for six months and only 17% for a year or more. Furthermore, 6% reported that their financial reserves were entirely exhausted. Thus, from the first days of the war, companies have been trying to optimise by reducing staff (LIGABusinessInform, 2022), providing unpaid leave, suspending contractual employment, reducing salaries, etc. According to a survey conducted by the HR portal grc.ua, the proportion of people affected by the decline in business activity and unemployment in Ukraine had reached 52% in 2022. Respondents in this survey claimed that they were either paid the minimum wage or had had it reduced by 30% or more (Savytskyi, 2022).
The National Bank of Ukraine report highlighted the exhaustion of business financial capabilities, emphasising that small businesses had fewer opportunities to financially support their staff. The NBU’s monthly macroeconomic and monetary review for July 2022 reported that small and medium-sized businesses in Ukraine had laid off 1.07 million employees. It also noted that these reductions had been driven by changes in the labour market since the start of the war. They highlighted that 27% of the staff were working under reduced salaries; 20% of staff had been sent on forced leave; and 20% of the staff had been laid off so far (Monthly Macroeconomic and Monetary, 2022).
Given these circumstances, the Ukrainian authorities, realising the importance and need to provide citizens with jobs, began implementing a number of measures and programmes aimed at stabilising the labour market and restoring the country’s labour potential to mitigate the effects of the war. Some of these programmes have been aimed at supporting the opening of new businesses, which in turn should create new jobs and pay the necessary taxes to the state budget.
One of these programmes is the government’s eRobota initiative, which provides Ukrainians with grants to start a business, develop entrepreneurship and receive training. It is aimed at boosting entrepreneurship and stimulating job creation. The main condition is the creation of jobs that will employ as many Ukrainians as possible (eRobota, 2024).
According to the Prime Minister of Ukraine, Denys Shmyhal, more than 6,000 grants from the state worth more than UAH 4.5 billion were approved a year after the programme was launched, designed to create about 20,000 new jobs (Cabinet of Ministers of Ukraine, 2023).
The eRobota programme includes several grant programmes, including:
Grants for processing enterprises— up to UAH 8 million for the purchase of equipment to create or increase production capacity. The grant provides for the creation of up to 25 jobs.
Own Garden— grants for the creation or development of horticulture, berry growing, and viticulture. Grants are provided up to UAH 400 thousand per hectare, but no more than 70% of the project cost.
Own greenhouse— up to UAH 7 million for the development of greenhouse facilities, with the mandatory creation of at least 14 jobs.
IT start-ups— grants of up to UAH 3.5 million for employee salaries, consulting services, equipment purchases, etc. to create new companies and jobs in the high-tech sector.
The Start in IT programme for obtaining a profession in the IT sector aimed at Ukrainians without formal education and experience in the industry (eRobota (2024).
The application for a grant is made through the Diia portal, where applicants must submit a business plan and pass a business reputation check. After receiving a grant decision, they are required to open a special bank account to receive the funds. For some programmes, such as support for recycling, planting gardens and setting up greenhouses, a co-financing share is required (Diia, 2024).
The initiative is part of the Government of Ukraine’s broader strategy to restore and develop the country’s economy in the wake of the war, with a focus on supporting small and medium-sized businesses. eRobota is a key element of the government’s strategy to respond to the economic challenges caused by the martial law in Ukraine.
Another crucial measure was the introduction of a programme to relocate businesses from areas close to or in the combat zone to safe regions in western Ukraine. In order to relocate a business to a safe area, the owner must submit an application for relocation. Once a positive decision is made, the company will receive a package of state support, including the selection of a location, assistance with transportation to the new location, assistance in resettling employees and finding new employees, support in restoring logistics, purchasing raw materials and finding markets (Ministry of Economy of Ukraine, 2023b).
Currently, the main work at the regional level is being carried out in the creation of opportunities to provide appropriate warehouse and production facilities for enterprises, the establishment of mechanisms for providing housing and office space for employees and the provision of safe working conditions.
As of May 2022, 510 enterprises had moved their facilities under the programme, 303 of which had already resumed operations in safe areas, and another 50 had installed equipment and connected communications. In addition, 192 companies were preparing to move in the near future and were at various stages of transportation.
It should also be borne in mind that to support the relocation of enterprises, there were also state measures, in which the State Employment Service played an important role, providing assistance to enterprises on personnel issues, the recruitment of employees and providing the necessary consulting support to enterprises, where necessary. These measures include remuneration, dismissal, transfer, downtime, employee time tracking, work organisation, safe and healthy working conditions, and administrative services. Advice services to relocated businesses were considered useful for enabling them to adapt to the changes made to labour legislation to adapt it to martial law, and to this end, the State Labour Service created a Telegram bot to promptly provide entrepreneurs with answers to frequently asked questions on labour legislation. A special information portal on labour relations under martial law was also launched (National Institute for Strategic Studies, 2022).
The next step was the creation of the ‘Army of Recovery’ programme, which aimed to encourage employers to hire IDPs, and which provided a monthly compensation of UAH 6,700 to employers who hired IDPs for two months. A unified database of vacancies was created in Ukraine, containing job offers from both the State Employment Service and the largest employment websites, with information about vacant jobs updated in real-time to enable employers to quickly find an employee and job seekers to find a new job. In addition, the government intensified the mechanism of involving job seekers in the country’s ‘Army of Recovery’ with the aim of encouraging able-bodied persons registered as unemployed and internally displaced persons without health restrictions to be involved in community service (Ministry of Economy of Ukraine, 2023a).
According to the Ministry of Economy, 8,500 unemployed people in 13 regions were involved in public works as part of the Army of Recovery project in 2022. They were paid at least UAH 6,700 for their work, which is more than the average unemployment benefit (UNIAN, 2023).
All these initiatives are aimed at providing citizens with jobs, creating new jobs and supporting entrepreneurship. The results show some success in the implementation of these programmes and a positive impact on the labour market.
Overall, it can be concluded that the Ukrainian authorities are actively working to address the problem of unemployment in the context of the military conflict and are making efforts to support the country’s economic recovery through the grants provided by the eRobota programme, assistance in the relocation of enterprises from areas close to the war zone to safe regions and the Army of Recovery programme.
Nevertheless, despite the government’s active efforts, the situation in the labour market remains challenging. The war has resulted in significant job losses, a decline in household incomes, and an increase in shadow employment. The shortage of qualified personnel in key economic and social sectors is particularly acute.
One of the main contributors to this problem is the massive emigration of professionals and young people abroad in search of better living and working conditions. This has resulted in the loss of a significant number of skilled workers, including medical professionals, lawyers, engineers, IT specialists, teachers and others.
The resulting staff shortages have undermined various sectors of the economy and social services. The lack of specialists can lead to a decline in the quality of medical services, legal support, education and other areas. Increasing salaries and improving working conditions would be required to attract specialists back to Ukraine, as well as stimulating the interest of young people in pursuing higher education and developing their careers at home.
In view of the above, the government has devoted a lot of effort to fighting unemployment, but this struggle has caused imbalances in the labour market. In particular, the greatest demand among employers is for skilled workers.
Analysing the National Bank of Ukraine’s July 2023 Inflation Report on the labour market and household income, it is clear that in the first months of 2023, there was an increase in demand for labour in Ukraine, driven by the economic recovery. The greatest demand was for specialists who were able to adapt businesses to the conditions of the military conflict, and this was reflected in new vacancies in blue-collar occupations, logistics, sales and procurement, as well as in healthcare and education. However, there has been a low demand for workers in the humanitarian, cultural, administrative and managerial sectors, as well as in information technology and construction.
In 2023, labour supply had almost returned to its previous path after the Ukrainian population had adapted to the high-security risks. The increase in employment was due both to people returning to their regular jobs and new hires. The employment situation of military veterans was also important. However, the number of Ukrainian emigrants remained significant due to deteriorating security expectations and the adaptation of Ukrainians abroad. This situation may continue, posing a risk to economic recovery.
The unemployment rate remains high, due both to previous labour market problems and the effects of the war, including the different recovery of sectors and regions. However, the situation is expected to improve in the context of economic recovery, albeit with regional imbalances in the labour market, which remain significant.
To summarise, the impact of the war on the labour market in Ukraine, where labour supply and demand are determined by difficult socio-economic conditions and security factors, is an important topic. The existing imbalances and challenges in the labour market require close monitoring and strategic planning to further stabilise and restore economic activity (National Bank of Ukraine, 2023).
An online survey of small and medium-sized businesses was conducted to find out what challenges they face in finding and training their workforce. A total of 252 small and medium-sized business owners were surveyed (Ekonomichna Pravda, 2023).
| Questions | Yes (%) | No (%) | I find it difficult to answer (%) |
|---|---|---|---|
| Do you plan to train and develop your employees in the medium and long term? | 80 | 10 | 10 |
| Do you plan to train and upgrade your employees in the short term? | 70 | 20 | 10 |
| Do you think the current education system in Ukraine is effective in training qualified personnel? | 60 | 25 | 15 |
| Are there any difficulties in finding employees? | 85 | 10 | 5 |
The main reason for the imbalance is the mismatch between the education system and the real needs of the economy and the labour market. More than 80% of businesses consider it ineffective. Therefore, companies are forced to train and upgrade their staff on their own. More than half of the surveyed businesses provided such training.
The state has made some attempts to improve the qualification level of employees. For example, the State Employment Centre offers a training programme for certain categories of people, which provides for a special voucher entitling them to retraining or training in another speciality, or to advanced training in educational institutions or with an employer.
Such a voucher is issued by employment centres to individuals who are not registered as unemployed but meet certain requirements. Thus, people over 45 years of age with at least 15 years of insurance experience and vocational or higher education, people discharged from military service (in particular, after participating in the anti-terrorist operation), and internally displaced persons are eligible for such training. The anti-terrorist operation refers to the military and security operations conducted by Ukrainian forces in eastern Ukraine from April 2014 to April 2018, primarily in response to the armed conflict in the Donetsk and Luhansk regions. This was later replaced by the Joint Forces Operation (JFO). In addition, the government has expanded the list of people eligible to receive such a voucher. Now, this circle of people includes defenders of the homeland, citizens who have been wounded, and people with disabilities.
Since February 2023, Ukraine has renewed the ‘Helping Hand’ programme, which provides loans to unemployed people from low-income families to start or develop their own businesses. It enables such individuals to receive a one-time interest-free repayable loan of up to UAH 100,500 to start or develop their own business. Such assistance is provided for the purchase of equipment and materials necessary for the development of their own business.
Thus, it can be seen that the development of the labour market is a complex phenomenon, which requires consideration of many aspects, both in terms of skilled personnel and their social well-being. Indeed, the conditions in which Ukraine has found itself as a result of the war are extremely challenging for the labour market. The war immediately led to a number of negative consequences: loss of jobs, mass unemployment, migration, shortage of skilled personnel due to emigration and human losses. Ukraine was not prepared for such large-scale challenges and only gradually began to take measures to restore the labour market.
Conclusion
The war in Ukraine has caused profound and widespread changes in the labour market, which have had a negative impact on employment, incomes and welfare.
First, the hostilities led to a significant decline in employment. Many businesses were forced to suspend or reduce their operations due to the destruction of infrastructure, disruption of supply chains, and falling demand. According to the Ministry of Economy, the number of unemployed reached 2.6–4.8 million people in early 2023. Small and medium-sized businesses were particularly affected, with more than 1 million jobs cut.
Second, the war provoked a rapid increase in unemployment. Many people have lost their jobs due to the closure of businesses, staff reductions or the inability to work in the war zone. According to surveys, almost 52% of Ukrainians have suffered from a decline in business activity and job losses. At the same time, unemployment remains high even in the government-controlled territories due to the economic crisis and uneven recovery of industries.
Third, the war caused large-scale migration both within the country and abroad. About 5 million Ukrainians were forced to leave their homes and move to safer regions. This led to an imbalance in local labour markets, where demand for housing, goods and services increased sharply. At the same time, millions of labour migrants have found themselves abroad, unable to return or seeing no employment prospects at home.
Fourth, the war has significantly worsened working conditions for those who have retained employment. Many people are forced to work in dangerous conditions, under fire or in destroyed premises. The practices of taking unpaid leave, salary cuts and delays in payment have become widespread.
Thus, the war has dealt a powerful blow to Ukraine’s labour market, resulting in job losses, rising unemployment, an imbalance of labour resources and deteriorating working conditions. These negative transformations are long-term and will require sustained efforts by the government, business and civil society to overcome. Restoring the labour market should be one of the key priorities of the country’s post-war reconstruction strategy.
The Government of Ukraine, aware of the scale of the negative impact of the war on the labour market, is taking a number of measures to mitigate the situation and support employment.
One of the key initiatives is the eRobota entrepreneurship support programme, which provides grants for business start-ups or development. This programme is aimed at stimulating business activity and self-employment, especially in regions affected by the war. During the year of the programme’s operation, more than 6,000 grants worth UAH 4.5 billion were issued, which helped create about 20,000 new jobs.
Another important area is to facilitate the relocation of businesses from the areas affected by the hostilities to safer regions of the country. The government is assisting businesses in transporting equipment, finding new production sites, and providing employees with housing. As of May 2022, 510 businesses had been relocated, of which 303 resumed operations at their new locations. This has saved thousands of jobs and provided people with a stable income.
Particular attention is paid to the employment of internally displaced persons who were forced to leave their homes due to the war. To this end, the ‘Army of Recovery’ programme was introduced, which provides compensation to employers for the cost of paying IDPs’ labour in the amount of UAH 6,700 per month. A single database of vacancies has also been created, which accumulates job offers from the employment service and private employers. IDPs can use this resource to find suitable work in the regions of displacement.
Despite these efforts, the situation in the labour market remains extremely difficult. The scale of the destruction and economic losses is so great that existing support programmes are not sufficient to fully restore employment. Many people are still unable to find work or are forced to work part-time or in the shadow economy. In addition, the implementation of government initiatives faces a number of obstacles, such as bureaucratic procedures, limited resources and insufficient coordination between agencies.
To improve the effectiveness of employment policy, additional measures are needed to stimulate job creation, infrastructure development, investment and economic activity in the affected regions. It is also important to ensure that support programmes are targeted and accessible to all categories of the population, including the most vulnerable groups. Only a comprehensive and consistent approach will help mitigate the negative effects of the war on the labour market and lay the foundations for its sustainable recovery in the future.
One of the most painful problems faced by the Ukrainian labour market as a result of the war is the acute shortage of qualified personnel. This problem has several dimensions and leads to serious imbalances between labour supply and demand.
First, the war provoked a massive outflow of professionals abroad. Many highly skilled professionals, especially in the fields of IT, medicine, education and science, were forced to leave the country due to the threat to their lives and the lack of employment prospects. According to various estimates, between 2 and 3.6 million able-bodied people, most of whom had higher education and valuable professional experience, left Ukraine. This ‘brain drain’ is creating a critical shortage of personnel in key economic and social sectors.
Second, Ukraine has suffered significant human losses as a result of the hostilities, including civilian deaths and injuries. Many of them were wounded in action and some were killed, including many skilled workers with unique knowledge and skills. In addition, the war has caused severe psychological trauma to millions of people, which negatively affects their ability to work and productivity.
As a result of these processes, a significant imbalance between the supply and demand for skilled labour has emerged in the Ukrainian labour market. On the one hand, there is a severe shortage of specialists in critical areas such as healthcare, education, transport, energy, etc. Employers complain about the inability to find workers with the necessary competencies, which hinders business and economic recovery. On the other hand, many skilled individuals who have remained in Ukraine are unable to find work in their field of expertise due to declining demand and changing employment patterns.
This situation calls for urgent measures by the state and other stakeholders to restore the balance in the labour market. It is necessary to develop a comprehensive strategy for the preservation and development of human capital, which should include:
Expanding the scope and diversifying instruments of support for entrepreneurship, including microcredit, tax benefits, and simplified regulatory procedures.
Developing targeted retraining and professional development programmes in line with labour market needs, especially in critical infrastructure and high-tech industries.
Implementing programmes to encourage the return of labour migrants, by creating attractive employment conditions and supporting reintegration.
Establishing mechanisms for the recognition and confirmation of qualifications obtained abroad or informally.
Strengthening coordination between central and local authorities, as well as cooperation with the private sector and NGOs in implementing employment programmes.
Providing targeted support to vulnerable groups, including young people, people with disabilities, and people of pre-retirement age, through active employment promotion programmes.
Improving the system for monitoring and evaluating the effectiveness of state employment support programmes, ensuring their flexibility and adaptability to changes in the labour market.
Investing in vocational education and training, focused on the needs of the labour market and taking into account the specifics of post-war recovery.
Promoting scarce professions among young people and encouraging them to choose appropriate educational paths.
Implementation of these recommendations will enhance the effectiveness of state policy in the labour market and accelerate the processes of restoring and developing Ukraine's labour potential in the context of and after the war. Otherwise, the shortage of professionals will only get worse, with devastating consequences for all spheres of public life.
To effectively address the labour market problems caused by the war, a comprehensive, systemic approach is indeed needed. Such an approach should take into account the entire range of factors that affect the functioning of the employment sector, from demographic patterns to the state of education and the economy.
First of all, it is necessary to conduct a thorough analysis of the demographic situation and its impact on the labour market. The war has led to significant human losses, forced migration and deformation of the age and gender structure of the population. These changes should be taken into account when forecasting labour supply and demand and planning social and educational policies. It is also important to develop measures to support the most vulnerable categories of the population— young people, the elderly, people with disabilities, etc.
The next critical aspect is economic recovery and modernisation. Without rebuilding destroyed businesses, creating new jobs and attracting investment, it is impossible to ensure a stable demand for labour. Therefore, the economic development strategy should be synchronised with the employment policy, taking into account the needs and specifics of local labour markets. Particular attention should be paid to supporting small and medium-sized businesses, promoting self-employment and developing promising new industries.
Education and training is another cornerstone of a systemic approach to labour market regulation. The war has caused significant damage to the educational infrastructure, resulting in a loss of human resources and a decline in the quality of education. Restoration and reform of the education system should be carried out in close cooperation with employers and taking into account the current needs of the economy. It is necessary to modernise the content and methods of education, introduce dual education, develop the adult education system and provide opportunities for retraining.
In addition, effective labour market regulation is impossible without taking into account social and institutional factors. The war has exacerbated the problems of poverty, social exclusion and inequality. Therefore, the employment recovery strategy should be accompanied by measures to increase incomes, expand access to social services, and strengthen the social protection system. It is also important to ensure effective interaction between key labour market institutions, such as the State Employment Service, employers, trade unions and educational institutions.
Finally, a systematic approach to labour market regulation should take into account regional peculiarities and imbalances. The war has had a different impact on different parts of the country, exacerbating existing imbalances in the development of the territories. Therefore, employment policy should be differentiated and adapted to the specifics of each region— including its economic structure, demographic situation and level of urbanisation. Special programmes may be needed to support depressed areas, encourage labour mobility and develop local infrastructure.
In summary, only a comprehensive view of labour market problems and a systematic approach to their solution will make it possible to overcome the consequences of the war in the field of employment effectively. This requires coordinated efforts of the state, business, education and civil society, as well as significant investments in human capital and infrastructure. Despite the complexity of this task, the restoration and development of the labour market is the key to Ukraine’s successful post-war reconstruction and the welfare of its citizens.