Systemic Breakdown: Deregulation, Unemployment, and the Devaluation of Labor
A strong trade union movement cannot exist without a stable and transparent labor relations system. Unfortunately, Ukraine’s system is in crisis.
Following the Russian full-scale invasion, the government pursued deregulation of labor laws, ostensibly to ensure flexibility during the emergency. In practice, these measures narrowed workers’ rights and weakened collective protections.
In its October 2024 enlargement report, the European Commission noted Ukraine’s critical situation in the field of labor rights. Among EU candidate states, Ukraine ranked last—scoring just 1 point in the comparative evaluation. Key problems included weak labor protections, limited labor inspection powers, and legal gaps vis-à-vis the Acquis Communautaire.
As of 2023, labor force participation was 56.7%, with unemployment at 19.2%. The decline in formal employment and the rise of precarious work signal a shrinking formal labor sector. Government programs like Reskilling Ukraine and Own Business have yet to reach a critical mass or effectively combat systemic unemployment.