The EU–Ukraine Labour Market: How Ukraine Can Turn Competition for Talent into Partnership

Ukraine’s European integration is often discussed in terms of legislative directives and macroeconomic indicators. Yet at the heart of this process lies its most vital and sensitive resource – people.

For many years, labour migration from Ukraine to Poland was significant, but it was often temporary in nature. Since the outbreak of the full-scale war, however, it has become a much more important driver of economic and social development.

This has intensified a conflict of interests: Ukraine is eager to bring its citizens back home, while Poland – like many other EU countries that have welcomed Ukrainians fleeing the war – would prefer to retain skilled workers and young people.

At the same time, these emerging trends and challenges can also be viewed as part of the preparation for a future single European market.

Finding and discussing ways to resolve this conflict of interests to the benefit of all parties is essential for ensuring the mutually beneficial development of both Ukraine’s economy and those of most EU member states. This article, however, focuses primarily on Poland, as it is based on discussions held by the Institute for Economic Research and Policy Consulting (IER) together with its Polish partner, the Warsaw Enterprise Institute (WEI).

Ukrainians’ New Economic Role

Today, more than 850,000 Ukrainians are employed in Poland. They already account for around 5% of the country’s workforce and generate significant added value for the Polish economy.

However, the nature of their presence is changing.

Whereas Ukrainians were once perceived primarily as a source of low-cost seasonal labour, they are now becoming a strategic workforce in critical sectors such as construction, logistics, manufacturing, and healthcare. Many migrants are adopting long-term strategies by putting down roots and investing in their professional development.

Ukrainians are also establishing businesses across a wide range of sectors in Poland. They have already registered around 150,000 sole proprietorships, as well as thousands of companies.

European integration will grant Ukraine one of the European Union’s fundamental freedoms – the free movement of workers. Aligning labour market regulations with EU standards will also be essential for encouraging Ukrainians working in EU countries to return home and successfully reintegrate into Ukraine’s labour market.

However, this process requires a number of regulatory changes in Ukraine.

One of the key priorities is the alignment of qualification systems. Ukraine is already working to establish qualification centres that will enable people to have skills acquired in the EU officially recognised.

To achieve this, Ukraine’s National Qualifications Framework must be fully aligned with the European Qualifications Framework, while occupational standards also need to be adopted.

Further discussions lie ahead regarding regulated professions, as well as sectors where access to employment will be facilitated not only for Ukrainians returning from abroad but also for workers from EU member states.

This will be a direct consequence of introducing the free movement of workers, as envisaged under Ukraine’s commitments to align its legislation with EU law.

It is important to recognise that EU membership means the free circulation of human capital.

Rather than resulting in irreversible emigration or a permanent “brain drain,” European integration creates a model in which experience gained in countries such as Poland or Germany can ultimately contribute to Ukraine’s recovery. This is why one of the government’s most important tasks will be to create a favourable business environment while ensuring a high quality of life for its citizens.

This includes, among other things, access to quality healthcare and education.

A favourable business climate will also encourage Ukrainians who have established businesses in Poland to launch companies and invest in Ukraine. In many respects, Poland has become a platform where Ukrainian entrepreneurs are learning to operate under European rules before expanding across the continent.

Competition for Labour

Despite their shared goals, Ukraine and Poland face objective points of tension that already exist and will remain relevant in Ukraine’s relations with other EU countries as well.

Competition for workers. Poland is facing a profound demographic crisis and, by the end of 2025, is expected to need an additional 2.5 million workers. At the same time, Ukraine critically needs these very same professionals – construction workers, engineers, and healthcare specialists – for its own recovery.

In effect, both countries are competing for the same pool of human capital.

An outdated legal framework. The bilateral agreement on mutual employment between Ukraine and Poland dates back to 1995.

It reflects neither the realities of the full-scale war, nor the temporary protection status granted to Ukrainians, nor Ukraine’s future EU membership. This issue could be addressed either by revising the existing agreement or, following Ukraine’s accession to the EU, through the establishment of a genuinely integrated European labour market.

Skills underutilisation. A significant share of Ukrainians in Poland – and in other countries as well – work in jobs that do not match their qualifications because of cumbersome diploma recognition procedures and language barriers.

This represents lost potential that benefits neither side to the fullest. Both Ukraine and Poland therefore need to take further steps towards the mutual recognition of qualifications and the simplification of diploma recognition procedures.

Can Conflicting Interests Be Reconciled?

Building a well-functioning labour market requires moving beyond emotions and engaging in a pragmatic dialogue. It is essential that the new legal framework facilitates the lawful movement of workers while meeting the needs of both economies.

One possible solution would be to establish shared vacancy databases and common occupational standards so that information about employment opportunities in Ukraine is readily available to Ukrainians currently living abroad. Poland already uses the Barometr zawodów (Occupational Barometer) to identify labour shortages and direct Labour Fund resources towards training specialists in occupations facing the greatest shortages.

Ukraine would benefit from adopting a similar approach.

It is equally important for both countries to encourage greater labour market participation among economically inactive groups. This would also reduce dependence on migrant labour.

Businesses should pay greater attention to groups that have traditionally been overlooked. One such group is the so-called “silver generation” – people aged 50 and above. They represent an enormous pool of experienced professionals, and investing in their reskilling should become a strategic priority.

Another important group consists of people with disabilities, many of whom in Ukraine are war veterans. Businesses need to become more socially inclusive by creating working environments that accommodate people with different types of disabilities and war-related injuries, including visual and hearing impairments as well as post-traumatic stress disorder (PTSD), and by helping them successfully adapt to civilian employment.

This requires flexible working arrangements, accessible workplaces, and greater investment in lifelong learning systems, which remain underdeveloped in Ukraine, as well as more effective mechanisms for recognising qualifications.

In Ukraine, it is also becoming increasingly important to encourage women to enter a broader range of professions, including those that have traditionally been considered “male” occupations. Even before the full-scale invasion — and most likely still today — women’s labour force participation remained relatively low. To attract more women to the workforce, employers should introduce flexible working arrangements, childcare facilities, and family-friendly policies. At the same time, access to early childhood education and childcare services remains equally important.

Another group that often experiences higher unemployment than the rest of the population is young people.

In many cases, this is the result of a mismatch between the skills they possess and those required by employers. That is why businesses should engage more actively with vocational education institutions as well as universities.

Direct communication about labour market needs would help educational institutions adapt their curricula accordingly. Access to affordable housing for young people — whether through student accommodation or employer-supported rental schemes — would also strengthen employers’ ability to compete for talent.

Ukraine has traditionally been characterised by low labour productivity, highlighting the need for a technological breakthrough.

As labour shortages intensify, automation, robotics, and artificial intelligence offer viable solutions.

Experience shows that rethinking business processes enables companies to achieve greater efficiency with fewer employees while making work more skilled and knowledge-intensive. This is the path towards higher labour productivity, which is essential for Europe’s long-term competitiveness.

Achieving this will require not only supportive regulation instead of overly bureaucratic procedures, but also broader regulatory reforms that concern not only Ukraine but the European Union as a whole.

The return of Ukrainians cannot be forced. It will happen only if people have confidence in their safety and have access to quality education, healthcare, and housing.

Poland has already recognised that without access to high-quality educational, healthcare, and social services, migrants are unlikely to remain in the country and may instead move elsewhere. Ukraine should draw the same lesson for its own repatriation policy: competition for people is intense — not only with Poland but with other EU member states as well.

European integration is not a zero-sum game in which one side must inevitably lose. It is a pathway towards creating an ecosystem in which EU member states — including, in the future, Ukraine and Poland — can become genuine partners.

We need to reduce the emotional tone of the debate, which is often fuelled by politicians, and focus instead on people’s real needs.

Ukraine must become attractive enough for people to return not out of obligation, but because of the opportunities it offers.

At the same time, we should be prepared for a future in which Polish professionals may also wish to work for Ukrainian companies on large-scale recovery projects.

Of course, this first requires a stable peace and credible security guarantees from Ukraine’s international partners. However, even now there is an urgent need to reform labour market legislation, improve the business regulatory environment, and modernise other related areas.

EU membership brings not only opportunities but also intense competition — for both investment and people.

This article is based on a discussion held as part of the project “A common future: Poland and Ukraine in the European single Market” on 20 November 2025. The discussion was supported by the International Renaissance Foundation and is available at the link below.

The article was published by “European Pravda”.