Despite the sharp drop in the activity of employers, in June the labor market saw an increase in the number of offers. True, the market has not yet approached the pre-war level both in terms of the number of vacancies and the level of salaries.
In Ukraine, the number of vacancies in the labor market in June is from 22% to 40% of the pre-war level, while a general trend towards an increase in the number of offers is noticeable. The number of vacancies is growing at a rate of 3-6% from week to week. But in general, the dynamics are rather slow and, most likely, there will be no cardinal changes in the next three months, says Anna Mazur, founder of the Happy Monday career platform.
Ruslana Berezovskaya, head of the expert-analytical center of the personnel portal grc.ua, is inclined to a more negative assessment of the situation. According to her, now there are 4.5 times fewer vacancies than before the start of a full-scale war. Ruslana Berezovskaya noted that against the backdrop of a small number of vacancies in general, competition for a job has grown.
“In Kyiv, there has always been the highest competition, but now it’s not like that – 9.5 people apply for one job. In Kharkov and the region there are 14 or more candidates for one job. But, for example, in the western region, where enterprises where the consequences of the military aggression of the Russian Federation were less felt, from 1 to 4 people per job. There is one applicant in Lviv,” Berezovskaya said Focus.
Unemployment and chaos: what is happening in the labor market in Ukraine
Since the beginning of March, 227 thousand people have officially registered as unemployed in Ukraine, it was reported Focus in the State Employment Service. As a result, as of June 20, 321 thousand people were registered as unemployed.
For comparison, last year in March, April and May, 194.6 thousand people received the status of unemployed, and in the “coronavirus” 2020 – 283.6 thousand people.
Some Civil Service still manages to find a job. For example, since March, 99,000 people have found new jobs, of which 85,000 are registered unemployed. Another 6,000 officially unemployed recovered for military service after being drafted.
Happy Monday analyzed the situation on the labor market and identified several characteristic trends.
Key Labor Market Trends — Summer 2022
- the number of applicants exceeds the number of open vacancies three times,
- there are more and more remote vacancies (it is predicted that this will continue in the future),
- the number of vacancies with work experience up to a year decreased by 67%,
- In addition to the shortage of vacancies, there is also a gender imbalance in the market: most of the offers are designed for men, and women are primarily looking for work.
According to the Happy Monday portal, applicants are interested in such remote positions as an accountant, call center operator, designer, SMM specialist, lawyer, content manager, marketer, English translator, copywriter, software tester.
Although lawyers now have very little chance of finding a job, says Ruslana Berezovskaya: “There are some office areas where there are almost no vacancies – for example, lawyers. For them, now 0.6% of vacancies from all active ones today.”
Accept little by little: how large companies-employers behave
Big business in wartime is looking for people to fill a number of vacancies. The loss of specialists by companies is associated with two important factors: conscription into the ranks of the Armed Forces of Ukraine and migration to other regions of the country or abroad.
Telecommunications company Kyivstar is now looking for up to 20 employees, although about 90-100 vacancies were opened before the start of a full-scale war. Basically, they are looking for specialists in the areas of retail business, marketing, IT and digital, as well as for the technical department, said Svetlana Konchanina, head of the department for attracting and developing talents.
Agro-industrial holding “Astarta-Kyiv” is now looking for people to replace the mobilized workers, so for the company it is more likely not about opening new vacancies, but about replacing employees, emphasized HR Director Svetlana Mozgovaya. According to her, the company now mainly needs specialists from the elevator industry, commercial activities, agronomists and livestock specialists.
ArcelorMittal Kryvyi Rih Metallurgical Plant is ready to hire people from Mariupol, Kherson, Melitopol and other regions affected by the war – now the company has opened about 250 vacancies in production divisions and 19 in office divisions, including vacancies for specialists and managers in various departments of the enterprise : logistics, internal audit, labor protection, department of strategic projects. She told about it Focus Director of the Human Resources Department Yulia Zabolotnaya.
All the mentioned companies say that they continue to register new employees in accordance with Ukrainian legislation. Kyivstar noted that some specialists are more difficult to find, while others are easier. But, for example, now there is a greater response to the previously most difficult vacancies in the field of IT and digital.
Even before the war, it was difficult for the agricultural holding to find workers with the required level of qualification, according to Astarta, now the situation has definitely not improved, partly because many are looking for remote work. “And it is important for us that people are here,” Mozgovaya said.
ArcelorMittal Kryviy Rih spends from several weeks to two months looking for the right employees. They say that they feel the outflow of qualified personnel abroad.
Not too high income: how salaries change in Ukraine
The grc has calculated that the average median salary is now 10% lower than before the outbreak of full-scale war. But there are professions where the salaries of employees were cut more severely.
No salary or experience. How leave at your own expense affects the length of service of employees
“For example, we calculated that in the field of extraction of raw materials, wages decreased by 58%. In the field of installation and maintenance, the drop in wages was 56%, in security – 49%. The largest drop in wages occurred in May,” said Ruslana Berezovskaya. That is, as soon as residents of the cities began to return home, and this is May, employers hurried to reduce the level of salary offers. This is not surprising in a situation where the labor market has become an employer’s market, not a job seeker’s market.
It is clear that employers are not too willing to talk about wage cuts. Kyivstar told how they supported employees: they paid the annual bonus for 2021 in advance, as well as the salary for February, allocated a one-time assistance in the amount of over UAH 30,000 to each employee, assigned a monthly assistance for six months, plus a relocation payment and money to rent housing for migrants. At the same time, the company admitted that the load on some specialists has decreased, in such cases it was necessary to switch to the use of accumulated leave.
ArcelorMittal Kryvyi Rih says that, in general, the level of salaries has not changed: the base rate has not been reduced, but the schedules have changed, there were individual decisions on holidays, downtime, full or part-time employment, so the actual payments still changed. Those who have retired receive two-thirds of their salary.
In 2022, companies did not raise salaries for employees, and there was no annual revision to the inflation index.
Astarta only noted that this year it did not conduct the traditional annual salary review. In other words, if earlier companies revised salaries and raised them by the inflation index, then in 2022, few people have bothered with this issue.
It is also important that many companies are hiring “without labor”, but in this case, compensation to employees is offered 30-50% less than at the beginning of February 2022. Sometimes employers also keep a job for an employee, but do not pay wages – he goes on vacation at his own expense. Lawyers warn: in this case, the seniority of employees is not counted.
“With unpaid leave (at your own expense), you need to be extremely careful, especially for an employee, because the amount of the employee’s wages and the monthly payment of insurance premiums affect the employee’s insurance experience, which is important when assigning a pension. Insurance experience is counted only when insurance premiums are paid “, recalled Valeria Gudiy, lawyer, adviser to Ilyashev & Partners Law Firm.