Mobilization reduced the labor force in Ukraine by 27%

Since the beginning of Russia's large-scale aggression, mobilization has seriously affected the Ukrainian economy, causing a significant reduction in the labor force. The number of available workers decreased by 27%.

Labor shortages are becoming one of the key challenges for businesses, and companies' efforts to recruit new employees have increased significantly.

Kyiv is trying to compensate for the losses caused by millions of people fleeing or joining the army, as well as the loss of life. Part of the male population moved to the shadow sector, avoiding mobilization, which only deepens the personnel shortage.

According to the report of the National Bank of Ukraine, in 2023 the labor force decreased by almost a quarter compared to 2021. The main losses are related to emigration and demographic factors, including occupation and transition of part of the population to the status of economically inactive persons.

The legislation allows key businesses to reserve up to 50% of their male employees who could potentially be mobilized, but this does not fully address the problem. According to representatives of the Ministry of Social Policy, this situation will inevitably affect pension payments in the future, which indicates the need for citizens to independently accumulate funds for old age.

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