While hundreds of thousands of Ukrainians are defending the country on the battlefield, businesses are facing a severe labor shortage. Some companies are betting on technological solutions, aiming to replace manual labor with automated systems as much as possible. Others are taking initial steps to attract migrant workers from poorer countries.
Will colleagues from Asia and Africa really appear in Ukrainian teams, and will this impact salary levels? And why might attracting such workers be a beneficial solution not only for the labor market but even for the front?
To discuss this, "Telegraph" asked Doctor of Economic Sciences and expert on migration policy and financial programs for migrants and the diaspora Andrei Haidutsky.
The subsidiary of "Lamella" from Tyachiv in Transcarpathia has become one of the first to openly declare plans to fill its vacancies with foreigners. The furniture manufacturing company is already in negotiations with the Ministry of Foreign Affairs to employ 160 workers from Bangladesh. A hotel has already been purchased and renovated for their accommodation.
The commercial director of the enterprise, Yaroslav Shcherban, admits: Ukrainians are reluctant to work, since they must register with the military enlistment office. The company provides reservations, but this can only be done for 50% of men. Some workers have already been mobilized and are serving. Among them are those who have been injured and have undergone demobilization.
Some tasks are performed by women, but physically demanding jobs, such as placing a tabletop on a finishing machine, are beyond their capabilities.
In search of resilient workers, the enterprise reached out to an international recruiting agency and decided to open its doors to workers from South Asia.
This, however, is far from the first and certainly not the last case for Ukraine. Rather, it marks the beginning of a new trend in the labor market. At the same time, the figure of 8 million economically inactive citizens, which is often cited when discussing unused internal potential, is quite a conditional statistic.
As "Telegraph" is told by migration policy expert and financial programs specialist for migrants and the diaspora Andrei Haidutsky, this is a post-Soviet term that should be abandoned.
— Many individuals are not working due to savings or other circumstances. For instance, this category includes pregnant women, prisoners, and people with severe illnesses, — he states.
According to him, the experience of developed countries shows that even if a million vacancies are created for one hundred thousand people, not all vacancies will be filled.
It is clear that Ukrainian companies, in the context of a prolonged war, are facing a shortage of personnel. Our businesses currently lack 3 million workers, which is 32% of the workforce. Inviting workers from other countries who would readily agree to work for Ukrainian salaries could be a blessing.
Moreover, such a model, despite all its challenges, could be economically advantageous.
— Typically, businesses do not hire workers directly; they use recruiters. Recruiters are paid for their services, which cost from one to three months' salaries depending on the category of the worker. Subsequently, the business pays salaries — conditionally speaking, Ukrainian or 20-30% below the Ukrainian rate, — shares Andrei Haidutsky.
Although companies invest funds initially, for example, in accommodating such a group of people, they gain long-term advantages.
As Haidutsky points out, all developed countries have a high proportion of migrants in their population structure and an even higher proportion of migrants in the workforce.
Thus, if Ukraine aims to become a developed country, we must follow this path.
Secondly, the experience of developed countries such as the United Arab Emirates, Qatar, Bahrain, Luxembourg, Norway, and Finland shows that migrants can be safe for a country or region only with proper management of this safety.
— As we see in the example of the United States, Donald Trump partly won due to anti-migration rhetoric. This is because the US had overly liberal conditions for attracting foreigners and their illegal stay in the country. As a result, these people remained there for years and began to pose a danger to society, — he states.
According to him, the USA has the highest number of migrants in the world, with a significant share being illegal migrants — over 25%. At one point, there were 13 million illegal immigrants, and now there are about 10-11 million.
The first thing to focus on is security. Best practices in this aspect are demonstrated by the UAE and Qatar, where employers are responsible for attracting workers from abroad.
Ukrainians must also take responsibility for the invited workers. Accordingly, a system of fines for non-compliance with regulations should be established. Additionally, the responsibility of the migrants themselves should be clearly defined, notes Haidutsky.
— Inadequate behavior of foreigners in a foreign country, their attitude toward local residents and employers should be penalized in two ways: through a system of fines and a system of deportation, — the expert believes.
It is preferable for the deportation system to be as swift as that implemented in the UAE. For example, in Dubai, there is a separate terminal at the airport for deportation. Up to three hundred individuals can be deported daily [the figure varies depending on the time of year and economic cycle].
After deportation, an individual may return to the country by paying a fine, but this depends on the severity of the offense.
Furthermore, according to Andrei Haidutsky, the local population must also be held accountable for inadequate treatment of foreigners coming to work or vacation.
— There should be no manifestations of racism. This applies to both individuals and legal entities. For instance, a situation where entry to a supermarket is allowed only for Ukrainians is unacceptable and is a manifestation of racism. For some reason, society currently believes that jobs, economic resources, and opportunities should be exclusively reserved for Ukrainian citizens and not foreigners, — he argues.
However, considering the two negative trends in the demographic situation — mortality exceeding birth rates and emigration surpassing immigration or return — we are forced to act.
— Otherwise, Ukraine may find itself in a situation where fewer and fewer people enter the "supermarket" called Ukraine. Ultimately, we may simply close this "supermarket," as only two categories of people will remain: those who will die or leave — the migration policy specialist is convinced.
It is worth noting that after the collapse of the Soviet Union, our country suddenly faced global migration. Ukrainian universities increasingly began to see students from Africa and Asia, as well as labor migrants in factories.
But even today, in comments on news about migrants, one can often encounter a wave of hate – they are accused of uncleanliness, laziness, audacity, cunning, and even unwillingness to pay fines.
As Haidutsky notes in a conversation with "Telegraph," such perceptions of Ukrainians do not always match reality.
— Experience shows that, as a rule, the best 10-20% leave each profession segment from their countries. For example, if plumbers are leaving, they will be the best plumbers seeking to change their lives for the better. They have learned the language, filled out applications, and obtained visas — more than 90% of the population in their countries has done this, — the expert believes.
Ukrainian employers should not question whether to hire Ukrainians or foreigners. Their priority should be profit, tax payments, business development, and creating added value.
— If you post a job ad on work.ua or robota.ua requiring "Ukrainian," no recruiting agency will accept such a request, as this is the first sign of racism, — reminds the migration policy and financial programs specialist for migrants and diaspora.
The choice of workers specifically from Asia has a straightforward economic explanation. The average salary in Bangladesh is about 200 dollars. In Ukraine, this amount is approximately 538.81 dollars (22,500 UAH as of January 2025 – Ed). For people from poorer countries, the salary difference being several times is a significant incentive.
At the same time, specialists from neighboring countries — Romania, Moldova, or Poland — find such amounts uninteresting. Workers there travel deeper into Europe to earn a little more.
— In Ukraine, salaries are higher than in 125 countries worldwide. That is,