UN: Ukraine loses over two million jobs due to war

Besides the terrible humanitarian problems, the war in Ukraine has had a dramatic negative impact on the country's economy and labour market.

According to the International Labour Organisation (ILO), employment in 2022 will be 15.5 per cent (2.4 million jobs) less than in 2021, RBC-Ukraine reports citing the report of the ILO (a UN specialised agency).

This forecast is not as low level as the ILO estimate in April 2022, shortly after the outbreak of the war, which predicted 4.8 million job losses.

The positive change is the result of a decrease in the number of Ukrainian territories under occupation or in which there are intensive hostilities. However, this partial recovery of the labour market is modest and very fragile, the ILO notes.

According to the report, the problems are exacerbated because numerous internally displaced people (IDPs) and refugees are seeking work in Ukraine and other countries and this may lead to lower salaries.

The ILO estimates that 10.4 per cent of the country's entire pre-war workforce are now refugees in other countries. This group consisting of 1.6 million includes predominantly women, most of whom previously worked in education, health care and welfare sectors.

A recent survey showed that to date, 28 per cent of surveyed Ukrainian refugees have been hired or are self-employed in the host countries.

“The consequences of the conflict are felt in the labour markets of neighbouring countries, which can lead to political destabilisation and destabilisation of the labour market in these countries. It is obvious in higher and more volatile prices, rising food insecurity and poverty in Central Asia and around the world,” the report says.