doi: 10.56294/sctconf2024.1130

 

Category: Finance, Business, Management, Economics and Accounting

 

ORIGINAL

 

Current labor market in the EU and Ukraine: trends, problems, forecasting and solutions

 

Mercado laboral actual en la UE y Ucrania: tendencias, problemas, previsiones y soluciones

 

Oleg M. Yaroshenko1, Hanna V. Anisimova2, Andrey M. Sliusar1, Ivan P. Zhygalkin3, Liubov V. Kotova4

 

1Department of Labor Law, Yaroslav Mudryi National Law University, 61024, 77 Pushkinska Str., Kharkiv, Ukraine.

2Department of Environmental Law, Yaroslav Mudryi National Law University, 61024, 77 Pushkinskaya Str., Kharkiv, Ukraine.

3Department of Сіvil Law No. 1, Yaroslav Mudryi National Law University, 61024, 77 Pushkinska Str., Kharkiv, Ukraine.

4Department of Law Science, Volodymyr Dahl East Ukrainian National University, 93400, 59A Tsentralny Ave., Severodonetsk, Ukraine.

 

Cite as: Yaroshenko OM, Anisimova HV, Sliusar AM, Zhygalkin IP, Kotova LV. Current labor market in the EU and Ukraine: trends, problems, forecasting and solutions. Salud, Ciencia y Tecnología - Serie de Conferencias. 2024; 3:.1130. https://doi.org/10.56294/sctconf2024.1130

 

Submitted: 08-02-2024                   Revised: 17-05-2024                   Accepted: 29-08-2024                 Published: 30-08-2024

 

Editor: Dr. William Castillo-González

 

ABSTRACT

 

The labor market is one of the economy changing components, it is quite similar to the market for goods and services, but instead of the demand and supply of goods, there is a demand and supply of labor, knowledge, skills and abilities that are supplied by the employee. The EU, in turn, is known for its openness to immigrants and the employment of third-country nationals. This creates new opportunities and challenges for workers and employers. Labor market research helps to understand the impact of immigration on labor markets. Covid-19 has actually become that springboard on the way to changes in the economies and labor markets of countries around the world. Transformations and changes that were just emerging until 2020 (this may safely include digitalization, automation, the spread of remote employment, etc.) will further intensify under the influence of the Covid-19 pandemic and the Russian-Ukrainian war and lead to a significant redistribution of workers between sectors. In general, labor market research in the EU and Ukraine helps countries to understand and respond to various challenges and opportunities related to employment, labor migration, economic development and social policy. The purpose of our work is to identify trends and problems that exist at the present stage of development of the labor market, as well as to forecast the further development of the labor market at the level of the European Union and Ukraine.

 

Keywords: Labor Market; Economy Changes; European Union; Unemployment; Labor Migration.

 

RESUMEN

 

El mercado de trabajo es uno de los componentes cambiantes de la economía, es bastante similar al mercado de bienes y servicios, pero en lugar de la demanda y oferta de bienes, existe una demanda y oferta de mano de obra, conocimientos, destrezas y habilidades que suministra el empleado. A su vez, la UE es conocida por su apertura a los inmigrantes y al empleo de nacionales de terceros países. Esto crea nuevas oportunidades y retos para trabajadores y empresarios. La investigación del mercado laboral ayuda a comprender el impacto de la inmigración en los mercados de trabajo. Covid-19 se ha convertido de hecho en ese trampolín en el camino hacia cambios en las economías y los mercados laborales de países de todo el mundo. Las transformaciones y los cambios que apenas estaban surgiendo hasta 2020 (entre los que pueden incluirse con seguridad la digitalización, la automatización, la extensión del empleo a distancia, etc.) se intensificarán aún más bajo la influencia de la pandemia de Covid-19 y la guerra ruso-ucraniana y darán lugar a una importante redistribución de los trabajadores entre sectores. En general, la investigación del mercado laboral en la UE y Ucrania ayuda a los países a comprender y responder a diversos retos y oportunidades relacionados con el empleo, la migración laboral, el desarrollo económico y la política social. El objetivo de nuestro trabajo es identificar las tendencias y los problemas que existen en la fase actual de desarrollo del mercado laboral, así como prever el futuro desarrollo del mercado laboral a nivel de la Unión Europea y Ucrania.

 

Palabras clave: Mercado Laboral; Cambios Económicos; Unión Europea; Desempleo; Migración Laboral.

 

 

 

INTRODUCTION

The modern world is quite disturbing, fragile and incomprehensible to people. The labor market is a complex system of social relations for the purchase and sale of a specific type of product, that is, work. However, the work contains not only an economic and technical component, but also includes political, social and cultural issues in various volumes (Markova et al., 2019). It should be noted that the labor market is similar to the market for goods and services and there is also supply and demand, but this applies primarily to the supply and demand of labor, skills and services that can be supplied by the employee. In this case, for the performance by the employee of certain tasks, the employer offers a monetary reward, that is, directly wages. In modern conditions, wages have become the main source of income that affects the material standard of living of the population.

The most ingenious component of the modern economy is the labor market. Its condition depends on many factors, which include the general state of the economy, the political situation, the development of entrepreneurial activity and others. The labor market combines not only the needs of employers and employees, it also reflects the demographic, political and economic processes taking place in the state. The latest research on the global labor market indicates that more than 3 billion people work or are looking for work in the labor market (Sun, 2021; Yaroshenko et al., 2020). However, the coronavirus pandemic has not only caused significant damage to the life and health of the entire population of the planet, but also caused a new economic stagnation with enormous damage to the labor market. It is worth noting that the rapid spread of Covid-19 and the economic crisis associated with this disease only exacerbated and exposed the already existing problems in the labor market, as well as pointed out gaps in the provisions on social protection (Mossberger et al., 2022; Natili & Negri, 2022; Yaroshenko & Tomashevski, 2021).

The level of employment is considered one of the main indicators of economic growth, that is, if economic growth slows down, then the percentage of the working population decreases. Covid-19 is a striking example of this, as the pandemic has significantly affected economic growth, trade and employment development. Due to the rapid spread of coronavirus infection, a significant part of employers was forced not only to transfer their employees to remote employment, but also to reduce staff, which in turn led to an increase in the number of unemployed (Khrystova & Uvarova, 2022; Küfeoğlu, 2022; Yaroshenko et al., 2021; Kiselyova & Kordunian, 2020).

The first stages of development of the labor market of the EU and Ukraine before February 24, 2022 provided for a long-term improvement and recovery from the coronavirus pandemic, but Russia’s invasion of Ukraine posed new challenges for Ukraine and its partners. Mass unemployment today is one of the main economic problems of Ukraine caused by the war. Changes that have taken place in the Ukrainian and European labor markets are inevitable. After all, it is Russia’s armed aggression against Ukraine that radically changes the paradigms and principles by which the labor market previously functioned.

 

METHOD

The research goal of this work is to identify trends and problems at the present stage of development of the labor market and predict further development at the level of the European Union and Ukraine. To collect primary data, a qualitative method was used. This method is really effective, because with its help a more integrated approach to in-depth analysis of labor markets was carried out. After using the qualitative method, an analysis method was used, the purpose of which is to convert the collected data into its own results and conclusions. We also used the analysis to reveal the relationship between the quantitative features of the economic processes that are currently taking place and affect the functioning of the Labor Market of Ukraine and the EU.

The next method used by the authors of the article is the comparative method. This method allows for a parallel analysis and reasoned conclusions based on the results of the comparison. Based on the application of this method, the authors compared the percentage of unemployment recorded in Ukraine in the period 2000-2023 and the impact of external factors on it. In addition, the authors compare the number of people who left for the EU before and after the war and emphasize that Russia’s armed aggression has had a significant impact on Ukrainian labor migration. Using the comparative method, it was found out that the labor markets of the EU and Ukraine are at different stages of development, the labor market of the European Union is more adapted to modern realities and more adapted to negative phenomena, while Ukrainian the labor market is at the stage of forming more flexible relations.

At the same time, the statistical method of scientific research was used. The use of the statistical method of scientific research in the article allowed the author to analyze and interpret the data to identify statistically significant trends and relationships. Statistics on unemployment, the number of labor migrants and the number of Ukrainian refugees. These are presented in the article. This was used as a basis for further analysis and comparison, which ensured that the results presented in the article were reliable.

The method of analysis and synthesis is used to identify the factors that affect the unemployment rate. In particular, based on the study of statistical data, the author emphasizes that the war in Ukraine and COVID-19 have had a negative impact on the labor market in Ukraine and provoked an increase in unemployment. At the same time, such events provoked a large number of migrants to move to the EU, thereby creating challenges for the EU labor market.

To determine the main trends and problems of labor markets, the following specific research methods were used: selective method, meod of extensive and intensive analysis, method of statistical groupings and method of spotting. In order to generalize the theoretical foundations of the formation of labor markets of the EU and Ukraine, component analysis and synthesis were also used.

The application of system-structural and complex methods in our work is quite important, because the system-structural method takes into account the interrelationships between individual aspects, mechanisms of the labor market and their elements and consists in the development of quantitative goals, determining the ways of their achievement, while the complex method consists in taking into account the organization-economic, socio-psychological, legal, technical, and other aspects in their totality and interconnection in the dominating roles of social and economic aspects. All of the above methods were used to build a single conceptual system with which a more holistic reflection of trends and problems of labor markets can be achieved.

The theoretical basis for writing this article was scientific articles and research on the European and Ukrainian labor markets, the study of the impact of Covid-19 and the Russian-Ukrainian war on economic development and employment. Analysis of information obtained from various studies will allow using a more accurate approach to assessing existing problems and trends in the labor markets, as well as to form your own forecasts for this problem. Despite the large number of scientific works devoted to the analysis of labor markets, wage inequalities, unemployment, etc. most of them are aimed at empirical analysis of the processes occurring in the labor markets. There is a lack of systematic analysis of the development of processes occurring in the European and Ukrainian labor markets.

 

RESULTS

Trends in recent decades show us the transition from an industrial type of economy to a knowledge economy. This transition and development of knowledge-intensive sectors of the economy contributes to the development of innovations, technological changes, which leads to economic growth. It should be noted that no crisis stops the trends observed immediately before its beginning, but only accelerates them. That is, we can say that by investigating trends, we can predict the further development of the labor market. This means that on the one hand there are problems provoked by the crisis, while on the other hand all the trends that began to develop before the crisis are more pronounced.

Covid-19 has actually become that springboard on the way to changes in the economies and labor markets of countries around the world. Transformations and changes that were just emerging until 2020 (this may safely include digitalization, automation, the spread of remote employment, etc.) will further intensify under the influence of the coronavirus pandemic and the Russian-Ukrainian war and lead to a significant redistribution of workers between sectors. One of the key trends that can be traced in the labor market is the growth of employment variability, that is, time-based employment, home-based work, remote employment and freelancing are increasingly being added to the traditional form of employment that is already familiar to us.

Another trend that can be traced in the European and Ukrainian labor markets is constant training, advanced training, as well as retraining. There is already an increase in demand for soft skills, such as critical thinking, creativity, adaptability and rapid adaptation to new conditions that are changing quite quickly. Flexibility of both the employee and the employer becomes a prerequisite for successful functioning in the future. After all, given the rapid change of many factors and factors affecting the economy, it is important to make quick decisions and be able to adapt to new conditions, effectively implement organizational changes, apply new types of employment and retrain during your career path.

The development of technologies leads to automation and robotization of enterprises and organizations, which in turn reduces the demand for low-skilled specialists, but on the other hand, the need for specialists who create and train specialists in the maintenance of such equipment is growing. That is, the labor market is actually being reorganized and the vector of demand for professions is changing. Workers are increasingly experiencing the benefits of automation and robotization, increasingly preferring machine labor over human labor. That is why the demand for specialists who are able to perform work that cannot be automated is increasing. The demand for specialists with creative, innovative and design abilities is increasing.

If we look at the historical retrospective of the unemployment rate (Table 1) in Ukraine during 2000-2021 (before the full-scale invasion), we can see that the highest level was observed in 2000 - 12,4 %. In 2001, it already declined and was at 11,7 %. After that, we see a downward trend. For clarity, we show a table based on the data of the Ministry of Finance of Ukraine (Unemployment rate in Ukraine in 2021, 2022):

 

Table 1. Unemployment rate in Ukraine during 2000 to 2021

Unemployment rate in Ukraine from 2000 to 2021

Year

Unemployment rate (%)

2000

12,4 %

2001

11,7 %

2002

10,3 %

2003

9,7 %

2004

9,2 %

2005

7,8 %

2006

7,4 %

2007

6,9 %

2008

6,9 %

2009

9,6 %

2010

8,8 %

2011

8,6 %

2012

8,1 %

2013

7,7 %

2014

9,7 %

2015

9,5 %

2016

9,7 %

2017

9,9 %

2018

9,1 %

2019

8,6 %

2020

9,9 %

2021

10,3 %

2022

35 %

 

It is worth noting that a new wave of growth in basic employment was recorded in 2014, after Russia annexed Crimea and started hostilities in Luhansk and Donetsk regions. This resulted in a large number of internally displaced persons who left the area for other regions of Ukraine. And this gives us reason to believe that the hostilities are having a negative impact on the employment market. In 2019, the level slightly decreased, but in 2020-2021, the ‘covid years’ again show an increase in the unemployed population. It is also worth taking into account the figures for 2022, after the start of Russia’s full-scale invasion. According to the July 2022 National Bank of Ukraine Inflation Report, the number of unemployed people reached a record 35 % after the start of the full-scale invasion. According to the National Bank of Ukraine, Ukrainians’ migration abroad and mobilization have kept the unemployment rate from rising. By the end of the year, the unemployment rate will decline from its peak due to economic recovery and increased demand for labor. However, as in other countries (e.g., the former Yugoslavia), even after the end of active hostilities, unemployment will decline slowly and remain at higher levels than before due to the long-term effects of the war (Inflation report, 2022). Based on this, we can state that any strong global or national shocks affect the situation on the labor market.

It is worth noting that the war in Ukraine has also created challenges for the EU labor market, as many Ukrainians were forced to leave their homes and emigrate to the territory of member states because of the war. Accordingly, they are now looking for work there. It is worth noting that even before the war began, Ukrainians were quite active in immigrating abroad for employment. According to the Governor of the National Bank of Ukraine, in 2019, the total number of Ukrainian migrant workers was approximately 3,2 million. In 2020, their number was approximately 3 million. During the year, 400-500 thousand people returned to the country, but mainly due to the coronavirus pandemic. In 2021, according to the Institute of Demography and Social Studies, the number of labor migrants is estimated at 2,5-3 million (Labor migration: how many Ukrainians worked abroad in 2019-2021, 2021). But it is important to note that this number is representative of the total number of labor migrants from Ukraine.

 

Table 2. Number of Ukrainian migrant workers abroad

2019

2020

2021

3,2 million

3 million

2,5-3 million

 

After 2022, the situation has changed dramatically. Currently, according to the United Nations High Commissioner for Refugees, a total of 6 201 600 Ukrainian refugees are registered in the world, of which 5 832 400 are in European countries. The largest number of Ukrainian refugees arrived in Poland – 1 639 725 (Ukraine Refugee Situation, 2023).

Another, but no less significant problem is the outflow of personnel abroad, which is closely intertwined with migration and the aging population. Increasing life expectancy and increasing the retirement age contributes to a longer working life of a person. Longer stay of the elderly in the labor market is a problem for the employment of the younger generation. All this contributes to labor migration in search of a better life and new career opportunities. In connection with the war, these problems only became deeper, because the able-bodied population was practically divided into 3 groups: those who defended their country; those who were forced to flee from Russia’s armed aggression (mainly women and children); and those who continue to work to support the country’s economy.

However, it is worth noting that all these problems create a shortage of workers, which will only increase over time. Also, the impact on the functioning of the labor market is carried out by the field of education. It should be noted that despite the educational reforms carried out in Ukraine, there is still an outdated material and technical base, which in turn creates a lack of practical training among students. In addition, the Covid-19 pandemic also has a significant impact on the lack of practical skills among modern graduates, because due to its rapid spread and threat to human life and health, all educational institutions were forced to change the form of education to distance learning, which in no way contributes to the acquisition of practical skills.

It should be noted that comparing the labor markets of Ukraine and the European Union, we noticed that there is a trend of early employment in Ukraine. That is, the proportion of young people who begin to work with the onset of adulthood increases. In the European Union, there is another trend: young people are often not actively involved in the labor market. It is worth noting that the impact of the Covid-19 pandemic on labor markets is quite significant. This is due to many factors. With the rapid introduction of quarantine restrictions, many enterprises not only began to lose profits, but generally ceased to exist. Some employers for the functioning of their enterprises and organizations were forced to reduce the staff. Such measures, in turn, led to an increase in the number of unemployed, which changed trends in the labor market for the worse. Employers who remained afloat were forced to transfer their employees to remote employment in order to ensure the functioning of the enterprise. The effects of the pandemic are already visible in labor markets in all regions of the world, but significant differences in recovery patterns can be traced.

However, it is also worth considering that a significant number of refugees from Syria and Afghanistan have arrived in Europe and continue to arrive, which creates a number of problems, including economic, political and social ones. The programs developed by the European Union are primarily aimed at social protection of such a category of the population as refugees. In our opinion, in addition to social protection, it is necessary to ensure the integration of refugees into European society. This can be done through employment and education. We believe that it is worth developing educational programs at the national level of states aimed at quality education with further employment, based on the previous professional activities of refugees, because now there are problems with the employment of this category of the population in accordance with their past labor and educational past.

Predicting the short term, it is necessary to take into account the fact that the EU labor market is more powerful and sustainable compared to the Ukrainian one. Also back in 2021, the European Union began work on restoring its economy. The employment rate is growing, the unemployment rate is decreasing, new jobs are constantly being created. It is quite risky to make a forecast for the long-term development of the labor market in the EU and Ukraine. First, it is directly related to the development of the war and the duration of hostilities. Secondly, a significant factor is the scale of the damage caused, which at this stage is almost impossible to predict, because the numbers are growing exponentially for each. Thirdly, we should not forget about the existence of coronavirus disease and its negative impact on the economy. Fourth, there is the question of the emergence of a new pandemic of monkey pox, which is also spreading around the world, but there is not enough information about the sources of infection and ways of its spread.

However, speaking of the short term, it is possible to predict an increase in the demand for professions aimed at rebuilding and restoring infrastructure. Already during this period, the need for psychologists and psychotherapists specializing directly in working with the military is growing, because at the end of the war it is necessary to carry out painless integration of the military into society. It is worth noting that the work of psychologists will also be needed not only for the military, but for all citizens, because the war affected everyone and left a mark on the psyche of each person. We believe that both in the EU and in Ukraine the need for specialists in the development and design of weapons and military equipment will increase. In addition, the need to build strong armies will increase, so it is possible to predict the interest of states in qualified military. Note that the prestige of the military profession will increase significantly.

 

DISCUSSION

The Great Recession in the EU not only provoked a deep external debt crisis, but also created a unique opportunity for national governments and the European Commission to radically reform the labor market (Alvarez et al., 2022). At the same time, the severity of quarantine restrictions caused by Covid-19 has a negative impact on employment and participation in the labor market, especially for young people, as the chance of their employment has decreased significantly (Hlasny & AlAzzawi, 2022). The labor market is quite sensitive to the level of GDP, that is, if the demand for goods and services decreases, the demand for labor decreases accordingly (Kamar et al., 2019; Dei, 2023).

Although automation is a positive trend in the labor market, it is also one of the main sources of economic concern for European and Ukrainian citizens, most of whom believe that automation means job loss (European Commission, 2017). As of today, there is already a significant amount of research aimed at finding out the impact of automation and technology on the labor market, but their opinions differ. One part believes that the impact of technology on jobs is zero (except in cases of low-skilled employment, because it is negative there), as well as the introduction of technology and robotization has a positive impact on wages in developed countries (Graetz & Michaels, 2018). The latter adhere to the theory that robotization and automation of the European economy negatively affect both employment and wages (Chiacchio et al., 2018). The third group is formed by scientists, in whose studies it turns out that technology has a positive impact on job creation. Studies show that the creation of new jobs prevails in the labor market than their reduction due to automation and rotation (Domini et al., 2021; Koch et al., 2021; Antón et al., 2022).

Previously, the researchers analyzed the impact of robot use on changes in demand for labor and income and found that each new robot added is on average capable of replacing 3,3 workers, as well as reducing wages by 0,4 % (Acemoglu & Restrepo, 2019). The use of robots has already begun to lead to a reduction in the incomes of workers who bypass middle and low qualifications, which only exacerbates income inequality (Abdurakhmanova et al., 2020). However, in our opinion, such studies are not unambiguous, because when talking about the European labor market as a whole, researchers forget about geographical and regional fragmentation, and the level of aging of the population in each individual country is different. Therefore, taking into account the above factors, it is worth noting that in the EU countries with a more resistant to sudden changes economy, such an impact is negligible, and in countries with less stress-resistant economies, the development of technology, on the contrary, will help reduce the number of people employed among certain groups of the population.

In the labor market of the Member States of the European Union, the main problem can be traced: employers do not comply with the law. Quite often, entrepreneurs and developing companies find a way to avoid the implementation of certain rules (this trend is quite easy to trace on the example of migrant workers who work without a contract, respectively, the settlement of their working conditions does not apply) (Pkhakadze, 2022). In addition, the introduction of measures aimed at the use of atypical contracts, in particular those concluded indefinitely or part-time, worsen the working conditions of certain categories of people (such categories are women, young and low-skilled workers) and lead to the creation of low-paid jobs, which in turn increases the instability of the labor market (Emmenegger et al., 2012; Lewis & Plomien, 2009; Giesselmann, 2014; Amuedo-Dorantes & Serrano-Padial, 2010)

As for the problem of population migration, the outflow of personnel in Ukraine causes significant problems for the country’s economy. At the same time, labor migrants from Eastern Europe, in particular from Ukraine, increase the economic development of the European Union (during the economic crisis of 2009, a significant part of the population of Poland migrated to richer Western economies, but since 2011 it is possible to trace an increase in migration flow to Poland, which became one of the factors for GDP growth) (Orczyk & Woźniak, 2022).

In support of our theory about the importance of integrating refugees not only into the labor market, but also into society as a whole, it is worth noting that at this stage the lack of knowledge of the language complicates refugees’ access to the labor market and social integration, which are necessary for full integration into European society (Rivna & Gress, 2022). It is worth noting that immigration will contribute to raising the level of the economy only in the case of a sufficiently open labor market for immigrants and refugees (Hajighasemi & Oghazi, 2022).

It is worth paying attention to the fact that European institutions propose to apply the flexibility of the labor market in order to counteract asymmetric shocks, as well as to increase the level of resilience during the negative phases of economic development (Canale et al., 2022). In support of this theory, we cite the opinion of another researcher that rigid labor markets create obstacles to the rapid adaptation of real wages to changes (Zemanek, 2010). After analyzing the research of other scientists, it is worth noting that the unemployment rate in the EU, which was returning in the pre-pandemic period, in April this level was 6,6 % (the highest unemployment rate decreased in Italy, Lithuania and Spain, but at the same time in countries such as Austria, Belgium and Portugal unemployment increased the most) (Masterson, 2022).

Improving the labor market in the European Union may require a wide range of measures and policy reforms, among others:

1.   education and training: investing in quality education and training for young people and adults will help to improve the skills and competitiveness of the workforce;

2.   active employment policy: developing active employment programs, such as on-the-job training, internships, and apprenticeships, can help facilitate easier access to jobs;

3.   support for small and medium-sized enterprises: policies aimed at supporting SMEs can stimulate economic development and job creation;

4.   promote flexible forms of labor: the introduction of flexible work schedules, teleworking, and other alternative forms of work can lead to greater employment and a better work-life balance;

5.   active labor market relations policy: facilitating social dialogue between employers and employees, as well as supporting collective bargaining, can help resolve problems and improve working conditions:

6.   regional development: investments in less developed regions can help to distribute jobs and reduce regional inequalities;

7.   migration policy: managing labor migration can be useful to fill vacancies in industries with labor shortages;

8.   preventing discrimination: measures to prevent discrimination in the workplace and promote equal opportunities for all workers;

9.   financial support for the unemployed: providing adequate social benefits for the unemployed and reducing poverty;

10.creation of innovative jobs: investments in science, technology and innovation contribute to the creation of new jobs in high-tech industries;

11.promoting women in the labor market: policies aimed at supporting women in the labor market, including maternity leave and childcare, can increase women’s participation in the economy;

12.green employment: developing green and sustainable jobs in line with the requirements of sustainable development.

These are only general areas of action. Specific measures to improve the labor market in the EU are largely determined by the national governments of each member state, as labor market regulation is the responsibility of each individual state. The EU can provide framework directives and recommendations, but specific policy and legislative decisions are made by national authorities. This makes the EU labor market very diverse, with different rules, policies and challenges in each country. Member states have to take into account their specific needs and circumstances, such as unemployment rates, demographic trends, economic situation and other factors, when designing and implementing their employment and labor market policies.

Therefore, when considering measures to improve the labor market in the EU, it is important to take into account the context of each individual member state and the differences in approaches that may exist between them. Flexibility and adaptation to specific conditions are key components of labor market improvement in different EU countries.

 

CONCLUSIONS

To the problems existing on the labor market of Ukraine, we can safely stop the work of a significant part of enterprises or their complete destruction caused by Russia’s military aggression. This caused a sharp decrease in activity in the labor market, the outflow of personnel abroad. Although labor migration before the war was one of the problems of the Ukrainian labor market, a significant part of the population migrated to European countries in search of a better life and working conditions. One of the problems that can be clearly seen in the labor market of Ukraine is the insufficient level of education, despite the reforms carried out at a rather low level, the material and technical base and the lack of practical skills of students continue to remain, which will further create obstacles to effective integration into labor activity.

The impact of Covid-19 on both labor markets is significant. The loss of profits by enterprises caused by the introduction of quarantine regulations led to bankruptcy and loss of profits. All this has led to an increase in the share of irreplaceables in the labor markets of Europe and Ukraine. However, taking into account the fact that the EU labor market is more stable in comparison with the Ukrainian one, it began to recover much faster and practically achieved pre-pandemic data. It should be noted that the main problem of the European Union is the integration of refugees from the South Asian region into labor markets and into society. Also, the problems include the late involvement of young people in the labor market.

Taking into account all the existing trends and problems imposed not only in the labor markets, but also in the economic and political dimensions, a forecast of the development of labor markets in the short term was made. Undoubtedly, Ukrainian the labor market has suffered quite a lot and it will take much more time to restore it than to restore the European one, but now there is a clear demand among narrowly qualified specialists in the development and design of weapons and equipment both in Ukraine and in the European Union, because this in the first year provides a higher level of security for the state and its citizens. As for Ukraine, in the post-war period it can be predicted that the economy will be aimed at reconstruction, in particular infrastructure, and the demand for such specialists will increase accordingly. In addition, the need for highly qualified psychologists for the population of Ukraine is already growing. We believe that in order to ensure a stable recovery of the labor market, states should focus on the principles of decent work, which also includes health and safety, improvement of social protection and the principle of decent wages.

The authors identified the following general measures to improve the EU labor market: education and training; employment policy; support for small and medium-sized enterprises; active labor market relations policy: regional development; migration policy; preventing discrimination; financial support for the unemployed; creation of innovative jobs; promoting women in the labor market; green employment.

 

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FINANCING

The authors did not receive funding for the development of this research.

 

CONFLICT OF INTEREST

The authors declare that there is no conflict of interest.

 

AUTHORSHIP CONTRIBUTION

Conceptualization: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Data curation: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Formal analysis: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Research: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Methodology: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Project administration: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Resources: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Software: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Supervision: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Validation: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Visualization: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Writing - original draft: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.

Writing - revision and editing: Oleg M. Yaroshenko, Hanna V. Anisimova, Andrey M. Sliusar, Ivan P. Zhygalkin, Liubov V. Kotova.