Yuliya Svyridenko, First Deputy Prime Minister and Minister of Economy of Ukraine, recently identified the lack of labour as one of the most critical challenges.
The main factors contributing to the personnel shortage are mobilisation and migration due to military operations in Ukraine.
Before Russia’s invasion, 59 percent of those surveyed by the Ministry of Economy of Ukraine reported no shortage of qualified workers. However, 43 percent of respondents had difficulties filling vacancies last month.
“Due to the departure of Ukrainians abroad and internal migration resulting from the war, there is a shortage of personnel and structural unemployment in Ukraine. In 2021, the official labour market had 11.5 million workers, but by 2023, this number had decreased to 9 million,” the Ministry of Economy noted.
According to preliminary calculations, to ensure annual GDP growth of 7 percent by 2030, an additional 4.5 million workers are needed, said Tetyana Berezhna, Deputy Minister of Economy of Ukraine.
Currently, according to the Work.ua portal, there are more vacancies than applicants. While six months before the war there were 6,600 vacancies for 8,300 CVs, today the ratio is 7,100 vacancies to 5,300 CVs.
Aware of the problem, the government is working on a project to modernise labour legislation. Among other things, training programs are being launched to improve prospective applicants’ qualifications and allow them to move into in-demand professions.
Wages on the rise
Increased competition in the labour market has forced employers to raise wages. According to the State Statistics Service of Ukraine, in the first quarter of 2024, the average salary in the country increased by 22.5 percent, amounting to UAH 18,903.
According to a study by the European Business Association, 72 percent of Ukrainian companies reported their intention to pay 11-15 percent more this year. Additionally, 28 percent reported salary increases of 6-10 percent. Around 13 percent indicated a 16-20 percent increase, and only 2 percent expected an increase of 21 percent.
According to the Work.ua portal, employees in the transport industry are offered salaries ranging from UAH 16,000 to UAH 56,000. International drivers and service station directors earn the most, about UAH 50,000. Drivers, on average, receive about UAH 27,500.
Logisticians are offered an average of UAH 25,000 (ranging from UAH 15,000 to UAH 50,000). Positions in remote areas and those in Kyiv and Lviv offer the highest salaries.
Forwarders are offered salaries from UAH 15,000 to UAH 36,000, averaging UAH 22,500. Similar to logisticians, remote work offers the highest earnings, with the highest salaries found in Lviv and Kyiv.
Employers are willing to pay well even to employees without work experience. For example, in Cherkasy, a forwarder driver can earn up to UAH 30,000, depending on the amount of work performed.
According to forecasts by the National Bank of Ukraine, real wages next year will be higher than before Russia’s invasion, and competition for workers in the labour market will continue to support the growth of nominal wages in Ukraine.
Looking forward, the Ministry of Economy has slightly adjusted its forecast. An average salary of UAH 21,809 and an 8.5 percent increase in growth had been expected, but the latest forecast predicts an average monthly salary of UAH 20,581 and growth adjusted for inflation of 12 percent.
Salaries in Poland
After Russia’s invasion, the transport and logistics industry, among others, felt a decrease in the number of workers from Ukraine. The shortage of personnel is especially noticeable in positions traditionally considered male-dominated. Salaries available in other European countries are also said to be a factor here, so what about salaries in the transport and logistics industry in neighboring Poland?
In the first four months of 2024, nearly half of Polish enterprises in the transport and logistics industry increased wages for employees, according to a study by the Polish Economic Institute.
Logisticians in Poland are offered salaries ranging from PLN 4,300 for a junior specialist to PLN 10,000-13,000 for a logistics manager, according to the portal znajdzprace.plus.
An assistant freight forwarder is offered PLN 4,300, while a senior freight forwarder earns PLN 7,360. A forwarding manager or coordinator can expect to earn PLN 8,200 gross, according to Star sp. z o.o. The highest earnings for freight forwarders are in the aviation industry.
Professional drivers in Poland earn an average of PLN 5,139, according to the report “Salary of Professional Drivers in Poland 2023″ by the Polish Institute of Road Transport (PITD). Almost 70 percent of surveyed drivers earn more than PLN 7,000 net. Salaries of international drivers range from PLN 8,500 to PLN 11,000 net. A quarter of Polish truckers earn five-figure sums.
Nurturing talent
Most employers have realised that it is much easier to develop a specialist internally than to attract one from outside. Therefore, international companies cooperate with educational institutions, offering students internships at their enterprises, with the best performers offered employment.
For example, TRANS.EU UKRAINE LLC allows students, starting from their third year, to work on a private transport exchange used by more than 41,000 companies across Europe.
“Through the private exchange, students will simulate situations, build routes, plan loads, create and confirm applications, and track shipment statuses,” said Maksym Golovenko, executive director of TRANS.EU UKRAINE LLC. “In a controlled environment, they can replicate the cargo transportation process from the need for transportation to its completion. They will then analyse reports to evaluate the success of the transports, learning to perform tasks they will encounter daily in the future.”
In an interview with Trans.INFO, Deputy Director of DB Schenker Ukraine, Daria Senchenko, revealed that she had an internship at the company during her master’s degree. Over 16 years, she advanced to the position of department head and deputy director.
The key role of women
Due to the mobilisation of many men, women are also stepping into roles traditionally considered male-dominated.
“The mobilisation of specialists to the Armed Forces has challenged the Ukrainian economy. We must focus on retraining programs for Ukrainians remaining behind, particularly women, to meet the demand for critical professions,” Yuliya Svyridenko said at a meeting with EBRD President Odile Renault-Basso in early June.
Female long-distance drivers are no longer surprising, especially in Europe. To avoid a shortage of long-distance drivers, the transport industry actively recruits women.
Sweden funded the “Reskilling Ukraine” project, helping women become truck drivers. Out of 200 applicants, 24 women were selected, all with at least three years of driving experience, excellent traffic rule knowledge, and strong motivation.
When driving schools lacked trucks, Scania Ukraine provided new trucks for training. The project plans to train over 300 women as truck drivers.
Women are also taking on logistics roles traditionally held by men in warehouses and other sectors.
Solving the puzzle
Approximately 1.3-1.5 million Ukrainians are currently unemployed, according to the M. V. Ptukh Institute of Demography and Social Research. Attracting these individuals to the labour market could alleviate the personnel shortage.
Attracting foreign workers nonetheless remains challenging due to security concerns and legislative norms. Foreigners need to be brought in on contracts for specific periods, leaving after their contract ends, suggests Oleksandr Gladun, deputy director of the Institute of Demography and Social Research of the National Academy of Sciences of Ukraine.
Additionally, job seekers from third countries often use Ukraine as a transit point to Europe.
The state is actively developing projects to integrate people with special needs into the labour market.
“Ukraine has 2.7 million people with disabilities, 2.56 million of whom are of working age. However, only 430,000 are employed, resulting in an 85 percent unemployment rate in this group, compared to 15 percent on average nationwide,” noted Oleksiy Miroshnychenko, President of the Confederation of Employers of Ukraine. “The state must fight for every workplace and every employee. We see great potential in employing at least 1 million able-bodied people with disabilities to aid in Ukraine’s economic recovery.”
Attracting 1 million able-bodied individuals with special needs to the labour market could accelerate GDP growth by 2.5-3.0 percent annually, emphasised Miroshnychenko.
Ageism, previously prevalent in the Ukrainian labour market, is diminishing. In the transport and logistics industry, people over 50 and pensioners, who are not affected by mobilization and can travel abroad, are being hired.
Retraining specialists and employing veterans are the main challenges for the government in the labour market, outlined Yuliya Svyridenko.
The exact number of Ukrainian citizens currently in the Armed Forces is classified, but estimates suggest about 1 million people will return to their workplaces after the war ends.
Automation and robotization of the industry will also help reduce the worker shortage.