Home Business Insights & Advice Impacts of the Ukrainian crisis on employment in the global market

Impacts of the Ukrainian crisis on employment in the global market

by John Saunders
11th Jul 22 2:33 pm

The war in Ukraine is one of the greatest tragedies of the 21st century. Unprovoked, the Russian Federation attacked Ukraine, starting a violent and unreasonable conflict. The consequences of the conflict are devastating, and they touched each aspect of life not only in Ukraine but all over the world also.

The job market is one of the areas that suffered from the war in Ukraine. Inflation, growing prices, and high competition make job searching difficult. Job seekers must apply for professional and affordable resume writing services with certified specialists. A high-quality resume is a requirement for hiring firms that use automated applicant tracking systems.

Energy crisis

An energy crisis is a significant component of the world’s disturbance related to the war in Ukraine. Russia has provided cheap fossil resources to the Western market for twenty years, and these relations have created significant dependence on European and American economies on these resources.

With the beginning of the war, the collective West had to ban Russian energy resources from the global market. However, such an abrupt shift caused consequences. The first is mass inflation. The world’s GDP is reduced by 1,5%, and global inflation increases by 1,3%.

It is massive stress for the economy that only started to recover from the pandemic limitations. Once again, logistic chains broke due to the increased prices for gas. In the US, the price reached a record $5 per gallon.

These factors impact the employment rate directly. Employers must cut salaries and fire their employees to ensure their businesses survive. A former professional must go through hiring firms to get more interviews and land a job suitable for their qualification.

ATS bots create additional tension during the job search process. An ATS system is a type of resume scanning software that analyzes applicants’ resumes automatically and searches for keywords, work experience, and accomplishments. Therefore, an applicant needs to read the job description and correct resume carefully before applying for a job.

The best way to create a bot-beating resume is to get professional help from a career advice expert. Many career resources help job seekers to land more interviews and get hired eventually due to the qualitative work with their resumes.

Job positions shortage

Similar to the pandemic period, many enterprises will have to cut positions to save the losses. The online segment will remain intact but must deal with more significant loading. However, energy resources are only a part of the more extensive sanctions packages.

Another part of the sanctions is prohibiting trading relations with Russia. Dozens of companies and brands leave Russia due to imposed sanctions. The companies include but are not limited to:

  • Hardware manufacturers
  • Grocery companies
  • Software developers
  • Media creators.
  • Famous clothing brands.

All these companies left the market to reduce Russia’s financial resources. On the one hand, it creates massive shortages of job positions. The contracts are broken, and people involved in the partnership with Russia must look for new job positions.

On the contrary, the quick exit from the Russian market will create new opportunities for other countries. The companies will look for alternative markets, such as CIS countries, which will create more job positions in every segment of the job market.

Job immigrants

The war has caused destruction and numerous deaths. Many more people tried to escape the war and flee overseas. The majority of these people are refugees who seek shelter and aim to return home when they have a possibility. However, some people plan to stay in other countries and find a job there.

Ukraine lost approximately five million job places due to the war. Many of these people will try to find jobs overseas. Besides, not all Russians support the autocratic policy of their country and try to escape. All these people are potential working immigrants.

The language barrier is the primary obstacle for job immigrants. Therefore, even qualified employees will be making an inquiry for low-cost jobs. This tendency will contribute to the social tension and overall unemployment rate.

Most Russians who escaped their country are IT specialists. Therefore, we may expect a new wave of affordable IT solutions soon. However, the negative perception of Russians worldwide and intense rivalry in the field are not beneficial conditions for starting a new business.

However, IT specialists will occupy even non-profitable positions, pushing out the qualified locals. The online work field follows the same rules as the traditional job market, and the companies will try to minimise their costs while developers must compete for any job opportunity.

Restoration of Ukraine

Even though the war has not ended yet, the world’s community raises the question of Ukraine’s restoration. Damaged living buildings, schools, and hospitals require help from all countries.

This project may serve as one of the job crisis mitigations. Building contracts, materials delivery, and actual building sites will create many work positions within and outside Ukraine.

Bottom line

The war in Ukraine brings harsh conditions for the entire world. The energy crisis and refugees create massive shortages of job positions. Besides, the mass exit of companies and brands from the Russian market contributes to the job market tension.

On the other hand, the modern job market will rebalance itself due to the new international connections. Besides, world leaders have already started to discuss Ukraine’s restoration that will mitigate the job position shortage in the future.

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