The Kharkiv City Organization of the Trade Union of Entrepreneurs started the initiative implementation “Chronicle of Russia’s war against Ukraine: what is Happening in the Ukrainian Labor Market in the SME Sector” within the project “Supporting the activities of the Ukrainian National Platform of the EaP CSF in 2021-2023” that is carried out by the Institute for Economic Research and Policy Consulting (IER) with the financial support of the European Union.
Name of the initiative: Chronicle of Russia’s war against Ukraine: what is Happening in the Ukrainian Labor Market in the SME Sector
Organisations: Kharkiv City Organization of the Trade Union of Entrepreneurs (WG5 UNP)
Duration of the project: 11.07-10.12.2022)
The goal: to analyze the impact of the war in Ukraine on the labor market in the SME sector and develop recommendations for its stabilization and overcoming the negative consequences.
The initiative is being implemented jointly with the Federation of Trade Unions of Small and Medium-sized Enterprises of Ukraine, the All-Ukrainian Alliance of Trade Unions, the NGO “Center for Social Security and Regional Initiatives”, the Trade Union Organization of Small and Medium Business Workers and Yednanya Shipyard of Dnipropetrovsk Oblast.
Valery Repin, Kharkiv City Organization of the Trade Union of Entrepreneurs:
Ukraine has been at war with the Russian Federation for more than a hundred days. Ukraine’s losses from Russian aggression, taking into account both the destruction already caused to the infrastructure and the economy, and the future losses in the following years, are predicted to be from 0.5 to 1 trillion dollars. The war caused new trends in the labor market and changes in the behavior of both employers and employees. Business is forced to reduce and optimize its activities, some companies have ceased to exist. Currently, there are data that about 5 million people lost their jobs due to the war. Ukrainian specialists who have lost their jobs due to moving to other cities or due to downsizing or layoffs are actively looking for work, but the demand here significantly exceeds the supply. The negative consequences of the crisis on the labor market are more felt by employees than by employers. Companies optimize costs, cut wages and bonuses, or even lay off employees. Consequently, competition among job seekers is growing. Employers, in turn, have a greater choice of specialists for their vacancies, the labor market turns into an “employer’s market”.
The current crisis in the labor market is the strongest in the last 10 years. According to experts, the labor market of the SME sector is the largest. Surveys among employees and the self-employed indicate that the war has already destroyed approximately half of the labor market in Ukraine. The absolute majority of this indicator falls on the SME sector. The outlook for reskilling is currently uncertain, and job growth is expected in only a few industries. The capacity of SMEs is the key to providing jobs to a significant number of workers and reducing the unemployment rate.
The analysis of the impact of the war on the labor market in the SME sector will allow to objectively assess the situation and potential of micro, small and medium-sized businesses in Ukraine and develop recommendations on the algorithm of actions for their stabilization and preservation of jobs.
As part of the implementation of the initiative, it is planned to prepare an analytical report “Chronicle of Russia’s war against Ukraine: what is happening in the Ukrainian labor market in the SME sector”, in particular data collection, analysis and consultations with stakeholders; publication preparation; informing stakeholders and the general audience about the results of the research.
The initiative is implemented within the framework of the project “Support to the activities of the UNP EaP CSF in 2021-2023”, funded by the European Union, the Eastern Partnership Civil Society Forum and implemented by the Institute for Economic Research and Policy Consulting