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It is becoming a conundrum for the government to find a balance between replenishing the Armed Forces and ensuring that the shortage of people does not harm the country’s economy.
Metinvest Group, which employs nearly 60,000 people and is seeking to fill 4,000 vacancies, has faced the problem of finding workers for the open-hearth production of Zaporizhstal.
The process is also complicated by the fact that men are reluctant to work for large companies that are targeted by the Territorial center for recruitment and social support. The shortage of staff results in a sharp increase in wartime salaries. Employers are raising payments to retain their employees. Despite inflation falling to 3%, down from 27% at its post-invasion peak, the NBU noted this phenomenon in its report, predicting that price-adjusted wages will exceed pre-war levels next year.
The law on mobilization gives businesses critical to the economy the opportunity to keep their teams together by allowing them to reserve up to 50% of their employees from being drafted. But Ukrainians are already experiencing problems.
As GMK Center reported earlier, according to an April study by the European Business Association in partnership with Tetyana Pashkina, a labor market analyst, almost three quarters (74%) of employers in the country are experiencing a shortage of staff.
Europe is interested in Ukrainian refugees returning home and it will reduce their access to housing benefits as well as pay for their return to their homeland. The Committee of the Parliamentary Assembly of the Council of Europe on migration agreed on the decision to pay money to Ukrainians returning to the Motherland. It is noted that funds will be paid to citizens who decide to return to Ukraine after the end of hostilities. However, it is currently unknown what amount will be provided. Also, a significant number of centers that provide housing for refugees from Ukraine will soon close in Ireland. As a result, many hotels and public facilities that have been used as refugee housing will again be available for commercial use. This results from a new policy that limits housing for people with temporary protection to 90 days. Also, the conditions for providing state humanitarian housing have changed in the Czech Republic since September 1. All refugees, including vulnerable persons, must leave free accommodation in the Czech Republic or arrange to make payment if they have reached the 90-day deadline as of that date.
The labour force in Ukraine has decreased by 27% due to mobilization.
According to Bloomberg, personnel shortages are reducing productivity and could impact the country's defence capabilities. This issue is expected to worsen, as the economy struggles to compensate for the loss of millions who have gone to the front lines, died in battle, or fled abroad. "This is a political problem that cannot be resolved with the help of allies. Labour shortages provide Russia with a strategic advantage," concludes a Bloomberg expert.
The Council of the EU has unchanged the temporary protection for Ukrainian refugees until March 4, 2026. The Directive on Temporary Protection gives Ukrainians the right to residence, access to the labor market, housing, social, medical, and other assistance.
62 UKRAINE Country Report July 2024 www.intellinews.com