Macroeconomic changes in the labor market caused by military actions on the territory of Ukraine

Rostislav Tulchinsky, Svitlana Tulchynska and Sergiy Kyrychenko
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Rostislav Tulchinsky: Higher Educational Institution "Academician Yuriy Bugay International Scientific and Technical University"
Svitlana Tulchynska: National Technical University of Ukraine "Igor Sikorsky Kyiv polytechnic institute"
Sergiy Kyrychenko: National Technical University of Ukraine "Igor Sikorsky Kyiv polytechnic institute"

Economic Synergy, 2022, issue 3, 6-16

Abstract: The article examines the labor market in Ukraine in the modern conditions of macroeconomic instability caused by military actions on the territory of Ukraine. It is substantiated that the labor market acts as a kind of indicator of the state of the entire economic system, it reflects the level of social development, demand and supply in the labor market demonstrate the state of destabilization or stability and sustainability of the country’s economy as a whole. The trends in the production sphere, consumption, and investment processes can be characterized by the state of the labor market. The conducted analysis makes it possible to note that during the period of hostilities, many production facilities and enterprises in various spheres of economic activity suffered devastating losses, approximately one-third of enterprises ceased their activities at the beginning of hostilities in Ukraine, and at the same time, such a situation had a negative impact on workplaces and the labor market in total, about half of all workers lost their jobs and incomes. One of the biggest losses for Ukraine is the large flow of refugees to the nearest European countries. Such a trend as relocation of employees’ families to mainly western regions of Ukraine and other countries was revealed. One of the negative changes in the labor market after the start of hostilities in Ukraine is an increase in unemployment and an increase in the demand for jobs, the demand for one job on average in Ukraine is twelve people. The smallest number of candidates for one workplace is observed in the western regions, and the largest number of applicants for one workplace is in the Kharkiv, Zaporizhzhia, Odesa regions, which is explained by the relocation of business to the central and western regions, and the termination of the activities of enterprises as a result of military actions on the territory of Ukraine. Military actions on the territory of Ukraine directly affected the social development of the country, including the labor market. It is substantiated that in connection with the continuation of hostilities, the situation on the labor market worsens, new problems appear, which are associated with the delay in the payment of wages, a decrease in its level and the continuation of a general reduction in employment. Employment in the conditions of macroeconomic instability caused by military actions on the territory of Ukraine is important, since the increase in employment will relieve a certain burden on the state budget and special extra-budgetary funds.

Keywords: labor market; military operations; labor market demand; supply; employment; unemployment; modern macroeconomic challenges; instability (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:bja:isteus:y:2022:i:3:p:6-16

DOI: 10.53920/ES-2022-3-1

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