Ukraine plans to bring at least two million more people into labor market by 2030

One of the objectives of the labor market reform, which will begin with the adoption of a new Labor Code, is to employ at least two million Ukrainians by 2030.

Daria Marchak, Deputy Minister of Economy, Environment, and Agriculture of Ukraine, said this in an interview with Ukrinform.

At the first stage of the reform, she said, the focus will be on bringing at least 300,000 additional workers out of the "shadow" economy and into the formal labor market. The expected economic effect of this step is about UAH 43 billion per year.

"These are the most conservative estimates if we achieve only the minimum KPI [key performance indicators of the implemented measures]. Our goal is to bring at least two million people into the labor market by 2030 from among those who are currently not working for various reasons (primarily because proper conditions have not been created for this)," the official added.

This will be facilitated, among other things, by the introduction of flexible forms of employment envisaged in the draft new Labor Code of Ukraine. The main instruments include expanding the types of employment contracts and the options for concluding them between employees and employers.

"We are even talking about a kind of 'contract builder.' You may hold one position and perform the functions assigned to it, but also have the time, motivation, and skills to do additional work. In that case, it is possible to conclude an employment contract that meets both the wishes and capabilities of the employee, taking into account, for example, special needs (a single mother, a single father, a person with a disability, a student), and the needs of the employer, for instance if their activities are seasonal," Marchak said.

She noted that clearer legislative definitions of employment relationships would also help to de-shadow the labor market.

The proposed criteria include personal performance of work in a specific profession/position; performing work on assignment and under the supervision of another person; regulation of the work process by the person for whom the work is performed; performing work at a designated or agreed workplace in compliance with internal rules; provision of working conditions and means of production by the party for whom the work is performed; systematic payment of remuneration in monetary form; setting of working hours and rest periods by the party for whom the work is performed; and reimbursement of expenses related to the performance of work.

"This is also an important lever for economic development and for bringing order to the labor market. At present, there is virtually no such distinction, which is why disputes arise, for example, over when a sole proprietor (FOP) is a genuine entrepreneur providing real services and when it is in fact shadow employment in the interests of large or medium-sized businesses," she said.

As reported, a government-initiated draft Labor Code of Ukraine was registered in parliament in late January. The new document is intended to modernize and deregulate outdated legislation, regulate individual and collective labor relations on the principles of equality and decent work, and align them with international standards.