The labor shortage in Ukraine is already threatening the economy, and the situation will only get worse after the war. Find out about the reasons, possible solutions and experts' forecasts on how to attract migrants and increase labor productivity

Legal assistance on entry and stay in Ukraine for foreign citizens

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The labor shortage in Ukraine is already noticeable, and this problem could become catastrophic after the war ends. According to Ella Libanova, director of the Mykhailo Ptukha Institute for Demography and Social Studies, a large number of working-age people have gone abroad, making it impossible to fully compensate for losses in the labor market. In a commentary to the Espresso TV channel during the Ukraine-Poland forum, she emphasized that if Ukraine is unable to provide itself with labor, it will have to invite migrants from other countries, mainly from less developed countries.

Read this article to find out how many foreigners lived in Ukraine before the war and what the migration situation is now.

Possible solutions to the labor shortage in Ukraine

Experts of the study "Future of Work: Development of Human Capital in Ukraine" by EasyBusiness think tank have estimated that in order to achieve annual GDP growth of 7% by 2032, Ukraine will need up to 4.5 million additional employees. At the same time, about 2 million people will leave the labor market over the next six years due to aging and migration. 

To solve this problem, it is necessary to implement comprehensive measures aimed at stimulating the return of Ukrainians and attracting foreign labor. The two main ways are to change the migration policy towards foreigners and to increase labor productivity.

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Inviting migrants

If Ukraine creates attractive starting conditions, it is possible to attract labor not only from less developed countries, but also from Poland, the Baltic States, and Central and Western Europe. Libanova believes that this could be one way to compensate for the shortage of labor.

However, creating such conditions requires a comprehensive approach and significant steps from the state. This includes updating and expanding the list of bilateral agreements that will help attract labor migrants, as well as changing approaches to the integration of foreigners in Ukraine.

How foreigners can get a job in Ukraine: All the rules and necessary documents are described here. Read more about how to obtain a residence permit in Ukraine on the basis of employment in this article.

Increasing labor productivity

Kyrylo Kryvolap, executive director of the Center for Economic Recovery, notes that the labor shortage can be overcome in two ways: by hiring millions of new workers or by increasing labor productivity, reducing the need for the number of specialists. Kryvolap believes that the government should encourage Ukrainians to return from abroad and change migration policy.

Read here how many foreigners received Ukrainian citizenship in 2023.

We remind you! The full-scale invasion did not prevent foreign investors from developing their business in Ukraine. This demonstrates not only the interest of foreign businessmen in the development of the Ukrainian market, but also their confidence in the potential of the country's economy even during the period of military operations. Read more about the most active foreigners in the business market in our previous article.

Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.

Ihor Usyk is the Head of Legal Department at Visit Ukraine

Before you travel to Ukraine or while you are already in the country, seek legal advice. Our team will help you feel safe and confident during your trip, business trip or relocation.