Ukraine's Population and Labor Market Statistics
Deputy Minister of Economy, Darina Marchak, has provided a detailed breakdown of Ukraine's population within its controlled territory and the state of its labor market, identifying key groups who are not working and the barriers they face. The current population in government-controlled Ukraine is 31.1 million, yet only 10.5 million are officially employed and pay the Unified Social Contribution (USC). This low employment rate presents a significant challenge to the nation's economic recovery and stability.
The country's population includes:
- 8.4 million non-working pensioners,
- 5.1 million children,
- 750 thousand students, and
- 730 thousand individuals providing care for children or people with disabilities.
A substantial number of working-age individuals, approximately 5 million, are neither employed, seeking work, nor receiving a pension. Among them are 860 thousand internally displaced persons (IDPs) of economically active age. Ukraine also has 2.3 million people with disabilities, of whom about 800 thousand are pensioners under the age of 60.
The labor force participation rate in Ukraine is roughly 55%, which is markedly lower than the 65-72% seen in the countries Ukraine aims to emulate. Darina Marchak noted that
“we have very high barriers to entering the labor market. When a person is not working, it's often not because they don't want to, but because we haven't yet created all the necessary conditions.”
Key Barriers to Labor Market Entry
Three major categories of non-working people can be identified:
- internally displaced persons,
- people with disabilities,
- women returning from maternity leave.
Among the primary barriers to labor market entry, Marchak cited infrastructure problems, discrimination, and ageism. She further emphasized that
“in Ukraine, you are considered too young for the labor market until you are 30, and after 35 you are already too old. You have five years to build a career.”
Consequently, the issue of employment in Ukraine remains critical. To improve the situation, it is essential to overcome existing barriers and create favorable conditions for all population groups. Given the high percentage of non-working individuals, particularly among IDPs and people with disabilities, implementing policies that support their integration into the labor market and ensure access to necessary resources and training is vital. These steps would not only boost employment levels but also contribute to improving the country's overall economic situation.
As the labor market in Ukraine grapples with significant challenges, the future demographic trends are equally concerning. A recent forecast suggests a dramatic decline in the youth population, which could further exacerbate the existing employment crisis. Understanding these projections is crucial for comprehending the broader implications for the economy and workforce dynamics in the coming decades.