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RESEARCH CENTER FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS of Ukraine (KHARKIV, UKRAINE)

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Liburkina L. M.

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Employment Dynamics and Structural Transformations of Ukraine’s Labor Market under Wartime Challenges
Fedotova Y. V., Ivanov V. M.

Fedotova, Yuliia V., and Ivanov, Vitalii M. (2026) “Employment Dynamics and Structural Transformations of Ukraine’s Labor Market under Wartime Challenges.” Business Inform 7:932–932.

Section: Labour economics and social policy

Article is written in Ukrainian
Downloads/views: 0

UDC 331.5(477)

Abstract:
The relevance of the problem stems from the fact that russia’s full-scale armed aggression against Ukraine has caused deep structural changes in the labor market, which are manifested under the influence of forced internal and external population displacement, large-scale destruction of production and social infrastructure, mobilization processes, a narrowing labor supply, and the outflow of human capital abroad. These processes are fundamentally changing the employment structure, the professional and qualification composition of the workforce, and regional imbalances in the labor market, which requires rethinking theoretical and methodological approaches to studying employment dynamics in conditions of prolonged armed conflict and postwar economic recovery. The aim of the article is to systematize the theoretical and methodological foundations for studying the structural transformation of the labor market and to summarize empirical trends in employment dynamics in Ukraine under conditions of the ongoing full-scale armed aggression. To achieve the set aim, methods of theoretical generalization and system analysis were used to clarify the essence of the concept of structural transformation of the labor market and its key determinants, as well as statistical and comparative methods to assess the dynamics of official employment and unemployment in 2021–2026. Special attention was given to studying the mechanisms of the impact of the armed conflict on the labor supply, including the effects of additional and discouraged workers, as well as the gender dimension of employment transformation, which becomes particularly significant in the context of male mobilization. The study found a steady decline in the number of officially employed individuals – from 12.8 million in 2021 to 9.4 million in the first quarter of 2026 – alongside an unemployment rate of about 21.1%, which is one of the highest in the world. Eight key trends that define the current dynamics of employment have been systematized: a reduction in the economic activity of the population; deepening structural unemployment; a shortage of qualified personnel; growth of informal employment; outflow of human capital; spread of entrepreneurial activity; mass retraining of workers; and the development of the gig economy. It has been proved that the structural transformation of Ukraine’s labor market has a stable, long-term character and will extend beyond the period of active hostilities. Promising directions for further research have been identified, related to the development of mechanisms for adapting the labor market to postwar recovery conditions.

Keywords: labor market; structural transformation; employment; unemployment; martial law; forced displacement; gender dimension.

Fig.: 1. Bibl.: 15.

Fedotova Yuliia V. – Candidate of Sciences (Economics), Associate Professor, Deputy Director, Educational and Research Institute of International Education and Humanities, O. M. Beketov National University of Urban Economy in Kharkiv (17 Chornohlazivska Str., Kharkіv, 61002, Ukraine)
Email: [email protected]
Ivanov Vitalii M. – Postgraduate Student, Department of Economics and Marketing, O. M. Beketov National University of Urban Economy in Kharkiv (17 Chornohlazivska Str., Kharkіv, 61002, Ukraine)
Email: [email protected]

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