Against the backdrop of a persistent labor shortage and systemic economic transformations, the Ukrainian labor market faces a new challenge: a financial gap between the expectations of job seekers and the capabilities of employers.
Rising living costs compel job seekers to maintain their income levels, while businesses remain constrained by the current economic climate. Recent statistical data indicate that financial issues have become the primary barrier to employment, with both parties increasingly struggling to reach a compromise regarding the value of labor.
According to a survey by GRC.UA, 48.1% of job seekers identified the inability to find a position with decent pay as the most frequently cited obstacle to employment. This suggests that nearly one in two job seekers faces a scarcity of vacancies that meet their basic financial needs.
Despite the difficulties in finding work, candidates maintain a firm stance regarding the value of their labor:
65.9% of job seekers are unwilling to lower their salary expectations.
For comparison, this figure stood at 70% in 2024 and 61.8% in 2023.
Meanwhile, employers find themselves caught in the grip of economic realities, where the growth of the total wage bill is outpacing their financial performance. Key HR challenges identified by companies include:
A mismatch between candidates’ salary expectations and what companies can offer — 40.7% (compared to 42.7% in 2024).
The consistently high percentage seen over the last few years confirms that this “salary impasse” has evolved into a systemic labor market issue: businesses lack the resources to pay more, while job seekers cannot afford to accept less.
The situation is further complicated by systematic Russian strikes on energy and critical infrastructure, as well as on civilian business facilities. The loss of production capacity, the destruction of warehouses, and the ongoing costs of maintaining autonomous power supply systems are forcing many employers to streamline their operations and resort to staff reductions. This creates a paradox: on one hand, enterprises are laying off employees due to a lack of resources to retain them; on the other, these displaced professionals enter the job market with high financial expectations—expectations that companies, amidst constant shelling and crisis, simply cannot meet.
“We are witnessing a profound imbalance between the actual cost of living and the financial capacity of businesses. Ukrainian job seekers are no longer willing to ‘lower their price,’ as inflation and daily living expenses necessitate a stable income. At the same time, employers have exhausted their capacity for rapid salary increases.” “The way out of this impasse lies in flexibility from both sides: developing a system of non-financial benefits, revising candidate requirements, and showing a willingness to invest in training young professionals,” notes Maryna Makovyi, CEO of GRC.UA.
The data were obtained through a sociological study involving 6,160 job seekers. Respondents from all parts of Ukraine—Kyiv, as well as the Western, Central, Southern, and Eastern regions—took part in the survey. The study covered various categories of citizens to determine the proportion of students and their intentions regarding future residence and employment, whether in Ukraine or abroad.
