The labor market continues to experience a shortage of workers: NBU names reasons and consequences
Kyiv • UNN
Demand for labor continues to grow, while supply remains constrained by migration, leading to labor shortages and wage growth, and household incomes are supported by budget transfers, pension indexation, and minimum wage increases.
Demand for labor in Ukraine continues to grow, while supply remains limited, including due to migration and mobilization. This leads to a shortage of personnel and, accordingly, to an increase in wages. This was reported by the NBU in its macroeconomic and monetary review for April, UNN reports.
Details
According to the NBU, the growth in the number of new job postings on job search sites indicates a steady demand for labor in early 2024. At the same time, according to business surveys, more and more companies are facing difficulties in finding both skilled and unskilled personnel.
"The number of job seekers, measured by the number of resumes on job search sites, continued to decline. This may be a result of both the recovery in employment and the limited supply of labor, including due to mobilization and further migration," the NBU said.
According to the UN, the number of migrants outside Ukraine since the beginning of 2024, as of March 14, has increased by almost 150 thousand (or 2%) to 6.5 million people, the NBU added.
"Due to the mismatch between labor supply and demand, there is increasing pressure to raise wages from both job seekers and employers. The increase in the minimum wage at the beginning of the year had an additional impact," the NBU said.
The report notes that rising wages, significant budget expenditures on military personnel, pension indexation (starting in March), and increased payments tied to the minimum wage have contributed to an increase in household income, which in turn supports consumer demand.
