Page 37 - UKRRptApr24

mechanical engineering is the result of defense-industrial needs, there is evidence that it can be further developed along additional avenues. Construction of new hotels, complexes, and restaurants is also currently underway. In the future, the IT field remains promising. However, for an investor to be interested in Ukraine, according to the Institute of Economic Research and Political Consultations, several barriers that may stand in the way must be removed. These are issues related to customs operations, the tax system, insurance, military risks, and court reform.
Analysts have studied the state of the M&A market in Ukraine based on 2023’s results. 47 M&A deals (mergers and acquisitions) were announced last year, as the Ukrainian M&A market grew by almost 70% compared to 2022. The average value of M&A deals in Ukraine has also increased significantly. In 2022, this indicator was $26M, while in 2023, the indicator jumped to $44.6M. The value of these deals exceeds even results from 2021, before the war. NJJ Capital's $500M acquisition of Lifecell accounted for 40% of total M&A deals in 2023. Excluding this unusual deal with Lifecell, the average value would have been a less impressive $28M, falling short of the average value of $40M observed in 2021. Investors' cautious, war-induced intentions were reflected in a relatively small number of transactions worth more than $100M in 2023, with only three such examples announced.
4.5 Labour and income
4.5.1 Labour market, unemployment dynamics
How has the war transformed the labour market in Ukraine? During 2023, employers informed employment centres about 329,000 vacancies. The structure of these vacancies is as follows:
● 18% of vacancies - at processing industry enterprises ● 16% - in wholesale and retail trade
● 13% - in the field of education
● 9% - in agriculture
● 8% - in the field of health care
● 8% - in public administration and defense ● 7% - in the field of transportation
At the same time, according to the Employment Center, even though the total number of candidates exceeds the number of offers, employers feel a lack of qualified personnel. This contributes to significant competition between employers in the labor market - they are willing to pay more to qualified workers. All in all, the general forecasts by specialists regarding Ukraine’s labor market are extremely pessimistic. If the government, lawmakers, donor organizations, and partner countries do not propose serious fundamental changes and programs, there is a serious danger that post-war Ukraine will be rebuilt by migrants from other countries.
Because of the war, the shadow labour market in Ukraine has grown to four million people, and the number of new vacancies exceeds pre-war figures. Over the past year and a half, approximately 1.5 million workers have left Ukraine’s official labour market due to the required military registration, so the state needs to find a middle ground regarding mobilization, said Oleksiy
37 UKRAINE Country Report April 2024 www.intellinews.com