In Ukraine, rising wages and the labour market: the need of the builders and accountants

In March, the continued recovery of the labor market, which began in February after the January lull. So, in the last month of winter compared with January, the number of CVS increased by 10%, and vacancies by 15%, according to a study by the International HR portal

“The most dynamic professional fields according to the number summary are headings “Administrative staff”, “staff work”, “Automobile business”, “Government service”, “early career”, — says the head of expert-analytical center of the portal Catherine Mashchenko. — The greatest number of jobs in February, employers are placed in such professional areas as “Production”, “Accounting”, “Automobile business” and “Construction”. The most active employers were in Kyiv, Chernihiv, Khmelnytskyi and Ivano-Frankivsk.

Competition in the labor market, measured by the hh Index (the ratio of the resume to number of vacancies) has decreased from 3.2 to 3. This means that the average for Ukraine by three specialists applying for one vacant position.

“Substantial competition among the candidates is observed in the extraction of raw materials: for every vacant position there are applying to 12-13 people, — says Mashchenko. One of the reasons — the placement of a significant number of enterprises on extraction of fuel-energy raw materials in non-government controlled areas. Equally important is the competition among top management. Traditionally difficult to find work for students and specialists without experience. Below all competition in the insurance, consulting, sales, medicine: low salaries in government hospitals are forcing health care workers to retrain and find another job”.


According to a survey conducted by the portal, raising the minimum wage (RS 3200) did not significantly affect the salary policy of most companies. Changes in the payments stated only 60% of Ukrainians. At the same time the increase as reported around 40% of respondents, while 20% of respondents stated reducing the size of payments due to reallocation of salaries among all employees of the company.


Meanwhile, the Cabinet sees the first positive results of their actions and the future development of employment. So, according to Prime Minister Vladimir Groisman for the fourth quarter of 2016, Ukraine’s GDP showed an increase of 4.7%. And this increase in the number of vacancies, reduction in unemployment, say analysts at the state employment service.

“I am very concerned about the employment system. It’s time to rebuild the system to stimulate the creation of jobs and actual employment. The increase in GDP and the associated growth in jobs is only the beginning,” — said Vladimir Groisman at a recent Board meeting of the Ministry of social policy.

“GDP growth is largely the effect of incorrect calculation of the deflator of the civil service statistics”, — said economist Alexander Okhrimenko. According to him, in fact we have a drop in GDP of 4% by the end of 2016. “Real GDP is calculated on the basis of nominal GDP, which is the sum of all goods, works and services at current prices. It is clear that if prices are rising, it is rising sharply and nominal GDP, although in reality the goods may be less, he explains. In 2016 we have just prices were rising rapidly (although SSS is “not noticed”). Consequently, the GDP growth is rising prices, not business.” Accordingly, a significant increase in the number of vacancies is still open to question.