Ukraine war destroys economy as 5 million job losses

According to the International Labor Organization (ILO), 4.8 million jobs have been lost in Ukraine since the beginning of the Russian invasion in February, as the fighting has shut down enterprises, stifled exports, and forced millions to flee.

According to an ILO analysis, employment losses, which accounted for almost 30 percent of Ukraine’s workforce before the invasion, might rise to 7 million if hostilities persist, with 3.4 million jobs returning quickly in the case of a cease-fire.

The battle may also increase unemployment in neighboring nations hosting millions of migrants, as migrant workers in Russia lose their jobs and return home.

Russian forces have pounded Ukrainian cities in a war that has killed thousands, forced more than 5 million people — mainly women, children, and older people — to flee, and could cause Ukraine’s economy to contract by at least one-third in 2022.

“Economic disruptions, combined with heavy internal displacement and flows of refugees, are causing large-scale losses in terms of employment and incomes,” the study said.

“The Russian aggression in Ukraine has resulted in a devastating humanitarian crisis, triggering the fastest forced population movement since the Second World War,” it said.

The majority of the migrants, an estimated 1.2 million of whom were working previous to the invasion, have been absorbed by neighboring nations like Poland and Romania.

According to the report, a protracted conflict will place continuous pressure on labor markets and welfare systems in those nations, presumably increasing unemployment.

“As a hypothetical exercise, adding these refugees to the number of unemployed would raise the unemployment rate in Poland from 3 percent to 5.3 percent,” it said.

The battle might also have an impact on Central Asian nations that rely significantly on remittances supplied by migrants working in Russia.

According to the report, an economic downturn in Russia caused by Western sanctions and the expenses of the conflict might result in migrant workers losing their employment and returning home.

According to the report, the war in Ukraine is compounding increasing food and energy costs, endangering jobs and real wage growth, particularly in low and middle-income nations still recovering from the coronavirus outbreak.

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