Oleg Ustenko, an economist and advisor to the president from 2019 to 2024, has raised concerns about the accuracy of Ukraine’s official unemployment statistics, claiming they significantly underreport the actual figures. During a recent broadcast on “Novyny. LIVE,” Ustenko stated that the official count of unemployed individuals is drastically lower than reality.
According to Ustenko, the reported unemployment rate suggests only about 95,000 people are jobless in a country with a population of approximately 30 million. He pointed out that international labor statistics indicate a much higher unemployment rate of around 11-12% among the working-age population, translating to approximately 1.1 million unemployed individuals.
Ustenko emphasized that the official numbers are around eleven times lower than the true extent of unemployment, describing the labor market as “100% distorted.” He noted that such discrepancies are unprecedented in his experience analyzing labor markets, even in high-informal economies in Latin America. This situation signals a critical shortage of skilled workers, as employers report difficulties in filling job vacancies.
Employers have indicated that about 70% of job applications submitted through platforms like wok.ua go unanswered due to a lack of suitable candidates. Ustenko remarked that when there is a labor shortage, companies are compelled to offer higher salaries to attract talent.
Labor Market Challenges in Ukraine
In early May, mayors from Cherkasy and Ivano-Frankivsk noted an influx of foreign workers in response to the labor shortage, particularly in road construction and other infrastructure projects. Experts have suggested that the hiring of foreign laborers will not displace Ukrainian workers, as migrants typically fill roles that remain unoccupied.
Demographer Ella Libanova explained that foreign workers often take on jobs that local populations are unwilling to accept, such as waste collection and janitorial positions. This trend highlights the complex dynamics of the labor market in Ukraine, where the demand for workers continues to rise amid a challenging economic landscape.
Oleg Ustenko has criticized Ukraine's official unemployment statistics, claiming they underreport the true number of jobless individuals by a significant margin. He highlights a critical labor shortage, with employers struggling to find suitable candidates, leading to increased wages.