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Millions are unemployed, yet there's a labor shortage. An economist explains the reasons behind this discrepancy in the job market.

In Ukraine, there are many lawyers and economists who are in low demand, while there is a shortage of skilled workers.
Millions are unemployed, yet there's a labor shortage. An economist explains the reasons behind this discrepancy in the job market.

A paradoxical situation has developed in the labor market of Ukraine. Officially, there are over two million unemployed individuals registered in the country, yet there is a tremendous shortage of workers in the job market.

This was stated by economist and member of the Economic Discussion Club Oleg Pendzin during a broadcast on the "KIEV24" TV channel. According to him, this paradox is a result of structural distortions in Ukraine's labor market.

"In certain sectors, we have an extremely high demand for personnel. This concerns skilled trades and individuals working in logistics. At the same time, when we talk about economic specialties, law, and journalism, there are quite a few people searching for jobs who cannot find them," he said.

Pendzin added that this indicates significant structural distortions in the labor market. The root cause is the issue of providing vocational education to Ukrainians. Specifically, there are few individuals in the country willing to pursue training in skilled trades. Furthermore, due to the war and mobilization, there is a sharp shortage of workers in traditionally male professions. It has reached the point where logistics companies, for example, are forced to offer courses for women to train them in managing freight transport.

It is worth noting that being unemployed in Ukraine is currently dangerous. In November 2024, Prime Minister Denys Shmyhal announced the priority of mobilizing unemployed Ukrainians who do not pay taxes. Meanwhile, the Armed Forces of Ukraine assert that there is no segregation based on official employment status.

Overall, throughout 2024, the labor market in Ukraine has shown an increase in demand for qualified specialists while simultaneously facing a shortage of personnel. There are five main vacancies that were in high demand during this period, as well as five that were the hardest to fill.