In Ukraine, there are professions that pay well even during the war, but there are also professions that are not in demand at all. What changes in the labor market caused by the war.
The average salary in Ukraine recovered to last year’s level and even began to grow. In addition, a record low number of unemployed was registered in November.
Salaries began to rise
The average nominal salary (the amount of money an employee receives for work performed and which includes taxes. – Ed.) in Ukraine, according to data from the European research center VoxEU/CEPR,
in autumn it recovered to the level of last year. And in October, it even showed a growth of 3% in annual terms.
The authors of the study Oleksiy Blinov, head of the analytical department of Sense Bank and Simeon Dyankov, director of the group of financial market researchers at the London School of Economics, explained the high volatility of salaries during the first months of the full-scale invasion of the Russian Federation in Ukraine by a change in the rhythm of payments in the private sector in the first days of this unprecedented crisis.
However, in the summer, the average nominal salary in Ukraine stabilized at the level of the average indicators of the year before last, and in September-October of this year it increased by 3% compared to the same period last year.
According to the results of 10 months of the current year, the growth of nominal salaries is estimated at 5%.
It is interesting that salary growth was not uniform and depended on economic sectors and chosen professions.
In the study, the authors noted that salaries were higher in the public sector than in the private sector. They also noted that wages in the productive economy were 6% lower than last year, and in the public service sector, on the contrary, wage growth exceeded 20%.
At the same time, the researchers noted that the acceleration of inflation led to a decrease in the real wages of Ukrainian workers. That is, after deducting all taxes, employees received less than last year. In general, the reduction of real salaries based on the results of 10 months of this year is estimated at 11%.
At the same time, the restoration of nominal wages contributed to a certain stabilization of the dynamics of real wages, which in recent months has averaged 18% in annual terms.
Cash and low-paid professions
Despite the war and the problems caused by it in the labor market, there are specialists in Ukraine whose work is not only in demand, but also well paid. Currently, there are areas where high salaries are maintained. According to the State Employment Service, the Top 5 vacancies with the highest salaries in Ukraine include: professional tool tender sales manager, media buyer, real estate agent, realtor, dental technician, endoscopist.
At the same time, according to the personnel portal grc.ua, the lowest salaries are offered to students and specialists without work experience, domestic staff, security guards, representatives of labor professions and salespeople.
The positive news is that according to the results of a sociological survey conducted by the Rating group, Ukrainians continue to gradually return to their workplaces.
38% of those who worked before the war returned to their regular jobs, 18% work remotely, and 7% found a new job. The survey also recorded for the first time positive trends in the return to work of citizens from the south and east of Ukraine.
Downsizing continues, the number of unemployed is decreasing
Despite the increase in salaries, the trend of reducing the number of employees continues in Ukraine.
According to the calculations of the VoxEU/CEPR study, as of September, 13% of officially employed workers lost their jobs.
Maksym Oryshchak, an analyst at the “Center of Exchange Technologies” company, says that companies and state institutions were forced to massively reduce staff or transfer people to vacation conditions at their own expense due to the war.
Unfortunately, the wave of cuts will continue.
“Almost 7% of enterprises and organizations plan to reduce staff. 14.5% of companies anticipate with a high probability of using this unpopular method of cost optimization in the near future,” says Ruslana Berezivska, head of the expert-analytical center of the HR portal grc.ua.
The massive downsizing of people due to the war led to unemployment. During nine months of active hostilities, about 5 million citizens lost their jobs.
“The hostilities continue where 10 million workers were employed. At least 5 million people lost their jobs. Hundreds of workers died in the fighting. As a result of hostilities, about 7 million people have already left the country. The level of unemployment has increased significantly,” said Tetyana Berezhna, Deputy Minister of Economy of Ukraine.
According to the preliminary forecast of the Ministry of Economy, the level of unemployment in Ukraine by the end of this year may be approximately 30%.
Tetyana Pashkina, an expert on the labor market, says that economic sectors are hindered by factors caused by the war, such as: the location of the enterprise in the territory of hostilities, disrupted logistics, lack of personnel, loss of sales markets, high purchase prices, relocation of the entire company, reorientation of production.
In his turn, M. Oryshchak notes that if in 2014 wages were cut to save staff jobs, now such an option is not always possible due to territorial difficulties, mass migration processes and the impossibility of transferring some types of activities to a remote mode. That is why sometimes employees have to be fired.
According to the survey data of the Rating group, there are more unemployed among the youngest and oldest Ukrainians, women and residents of the eastern regions.
However, there is good news. This month, Ukraine recorded a record low number of officially registered unemployed – more than 200,000.
“Such indicators have never been seen in the history of monitoring unemployment in Ukraine,” said People’s Deputy Yaroslav Zhelezniak.
But, according to him, it is too early to rejoice. Many factors influence the fall in the unemployment rate. First, going abroad – those who are there cannot register as unemployed, so the indicator falls. Secondly, unemployment benefits are now only for 90 days (it used to be much longer), so many simply do not even waste time for such a short period. Currently, only 171,600 people receive payments. The average amount of the payment is UAH 4.6 thousand. Thirdly, men must bring documents from the Military Commissariat before registering for unemployment. That is why they are currently almost not registered.
But it is worth admitting that the indicators are also influenced by a good factor – the fact that employers have begun to actively employ people.
“Since the beginning of the war, 428,000 people have acquired the status of unemployed. And 237,000 people have already found work through the Employment Centers”, – noted Ya. Zheleznyak.
The government is also trying to fight unemployment.
According to the Minister of Economy, Yulia Svyridenko, the government has launched programs for affordable business lending, relocation of enterprises from dangerous areas to relatively safe ones, grant support for the development of entrepreneurship “yeRobota”, involvement of the unemployed in socially useful works within the framework of the “Recovery Army” project, and partial unemployment assistance programs . In addition, the “Unified Vacancy Portal” has been launched in Ukraine, which allows you to find job information according to the region, industry and expected salary level.