Labor Market Organization in Ukraine: Challenges and Perspectives

Abstract

The chapter aims to analyze the Ukrainian labor market organization in the condition of military aggression against Ukraine. The Ukrainian economy encounters devastating destruction and loss of economic entities, enormous capital, and labor. Owing to the displacement of a considerable number of people from territories where fighting is taking place, the number of jobs dropped and the unemployment rate increased. Internal migrants put additional pressure on the labor market in Ukraine. The deterioration in the labor market situation was associated with a drop in living standards. Small and medium-sized enterprises (SMEs) in the service sector suffer from a reduction in the population of cities, which causes both a reduction in the demand for services and a reduction in the supply of highly qualified specialists. Small businesses feel caught between the minimum possible sale of their products and the reduced demand. The basic research questions are identifying and estimating the urgent needs of the labor market and capital. It will be directed to define sectors that can accelerate the process of rebuilding the economy. Diversifying the economy, increasing product/service sophistication, using comparative advantages, and transferring resources (both labor and capital) lead to more productive activities and a rise in well-being.