The Ukrainian economy may face serious difficulties due to the labor force drain related to the so-called mobilization law. The new regulations have intensified policies towards conscripts, and potential staff shortages could significantly limit the efficiency of many companies. Entities whose activities genuinely support Ukraine’s defense forces are in a particular situation. The labor shortages are increasingly filled by women, who also perform typically male-dominated jobs.
Labor shortages hit the economy
As reported by the Kiev Institute for Economic Research and Policy Consulting (IER), a lack of workers in Ukrainian enterprises is the second issue after rising costs. Labour shortages weaken work productivity and cause a visible decrease in the country’s economic production. According to Serhiy Nikolaychuk, Deputy Chairman of the National Bank of Ukraine, there is a probable drop of nearly 30% compared to 2021 by the end of this year. The entrepreneurs also see the risks.
“The company must first complete the team before it can start restoring the production capabilities that suffered as a result of the war. Not raw materials, not equipment or machines – the most important question is: who will work, and are we able to find these people – said Tetiana Petruk, Director for Sustainable Development at Metinvest Group.
According to the mobilization law, men aged 18 to 60 had to regulate their relations with the army within 60 days from the law’s implementation, counted from May 18. In practice, every Ukrainian must carry a military book whenever he leaves the house. Otherwise, he may be immediately sent to the recruitment command and, after appropriate training, to the front. According to Volodymyr Landy, senior economist from the Kyiv Economic Strategy Center, the Ukrainian government should pay attention to business needs even when strengthening the army.
Business needs complimentary to defense forces needs
The mobilization has greatly affected industry workers who produce for the military. One such company, the largest Ukrainian manufacturer of steel products, iron ore, and coking coal, operates under extremely challenging conditions since the outbreak of full-scale war. Currently, over 8,000 Metinvest employees and its joint ventures and collaborators serve in Ukraine’s defense forces. The company, currently operating at 65-70% capacity, employs nearly 60,000 people.
Many companies in Ukraine create their staff reserves by training current employees or hiring students. Women are employed in positions previously reserved for men, including mining. Over a thousand workers have returned from war at Metinvest, including veterans of the anti-terrorist operation. The group is developing a comprehensive ecosystem to support them in returning to work and reintegrating with the environment. The program includes all stages of interaction with veterans, including physical and psychological convalescence, support in retraining, and re-employment.
Ukrainian women take over male positions
The Ukrainian economy is kept in check thanks in part to the determination and motivation of many women who have decided to work in sectors previously dominated by men, such as mining, transport or construction. To enable women to work underground, the Ukrainian government has even abolished the law that previously prohibited them from working in “harmful or dangerous conditions”. In Pokrovsk, Metinvest also hired women to operate mining machines or measure methane levels.
“So far, about 30 women have undertaken work underground, while some have begun working in traditionally male-dominated roles in logistics and transport,” said Serhiy Stepanenko, head of the HR department at Metinvest’s mine in Pokrovsk.
Simultaneously, Stepanenko stressed that many of the most physically demanding roles will remain closed to women. Moreover, even their employment would not fully compensate for staff shortages.
Source: https://managerplus.pl/ukrainska-gospodarka-potrzebuje-rak-do-pracy-22692
