Main points
- The main reasons for employee layoffs in Ukraine are: salary (31%), mobilization (24%), burnout (16%), etc.
- Companies try to retain employees through salary increases (27%) and flexible work formats (6%).
Why Ukrainians are being laid off from companies en masse / Collage of Channel 24, photo Shutterstock
The Ukrainian labor market is currently in a state of constant change: businesses are gradually recovering, actively looking for new employees, but at the same time they are facing the problem of retaining them. Companies are increasingly losing employees, in particular due to salary issues and mobilization.
How has employee turnover changed and why are employees leaving?
Work.ua conducted a survey among employers and shared the results.
- The results showed that 35% of companies have seen employee turnover increase over the past year.
- In 51% it remained unchanged;
- Only 14% of businesses were able to reduce it.
This means that the problem is either worsening or remaining at a stable high level.
Among the main reasons for layoffs, salary is most often mentioned – it was mentioned by 31% of respondents. In second place is mobilization (24%), which does not depend on employers and significantly affects personnel stability, especially in companies with a large number of men of draft age.
Another 16% of employers cite burnout as a reason for layoffs. Danger due to war was a factor in 13% of cases, and relocation in 9%.
Reasons for layoffs / infographic Work.ua
At the same time, in the “other” category, employers cite a wider range of reasons:
- family circumstances;
- health problems;
- change of profession;
- desire to find a less tiring job.
Many responses related to the lack of bookings from mobilization – one of the most painful factors for businesses.
How does a business try to retain people?
In response to HR challenges, 28% of companies use several employee retention tools at once, trying to act comprehensively.
Another 27% of employers believe that the most effective way is to increase salaries. At the same time, 25% of companies admit that they do not have a systematic approach to staff retention at all. Others choose point solutions:
- 6% rely on flexible work formats;
- 7% – for training and development;
- 4% – for regular feedback with the team;
- 3% – for psychological support of employees.
What are the advantages of official employment in Ukraine?
The main innovation of the draft Labor Code is the focus on the state's interest in maximally ensuring the possibility of official employment for the population, Vasyl Voskoboynyk said in a commentary on Channel 24. In return, people will receive social protection and seniority for a future pension.
Vasyl Voskoboynyk
Head of the Migration Policy Office, President of the All-Ukrainian Association of International Employment Companies
The push for official employment should be the understanding that when a person pays taxes, he has social protection from the state, he can receive sick leave, and count on vacation pay. Everything must be done in such a way that working officially is profitable, so that it is built not just on some slogans, but on the fact that a person understands why his official work will be more useful than illegal employment.
The new Labor Code will not directly solve the problem of informal employment, as it belongs more to the sphere of taxation and concerns the vision of economic development, adds Vasyl Voskoboynyk. According to the expert, cheap labor should not be an advantage for Ukraine , instead, it should focus on creating high-paying jobs.
Labor market news in Ukraine
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Ukraine is facing a shortage of workers, especially in construction, trade, services and technical professions, but people aged 55+ are often ignored. More than half of companies in construction admit that the shortage of workers is hindering their development.
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Salaries for blue-collar jobs in Ukraine have increased by 10-40%, but there is a critical shortage of some specialists. The largest salary increases are observed for painters (+43%), assemblers (+34%), foremen (+33%) and bricklayers (+32%).
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At the beginning of 2026, over 111,000 vacancies were posted in Ukraine, but only about 35% of them were filled. The highest percentage of job openings is observed in Donetsk region (68.5%), and the average time to find an employee is 17 days.