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Economy

Single Labor Market: How Ukraine and the EU Can Transform Competition for People into Partnership

Single Labor Market: How Ukraine and the EU Can Transform Competition for People into Partnership

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

For many years, labor migration from Ukraine to Poland was quite high, but often temporary in nature. After the start of the full-scale war, it became a more significant factor. The tension of interest intensifies, as Ukraine is interested in the return of Ukrainians home, while Poland (and generally many other EU states that granted temporary protection to many Ukrainians fleeing the war) would prefer to retain skilled workers and young people.

At the same time, new trends and challenges can be viewed as a preparation for the future single European market. Searching for and discussing approaches to resolve the conflict of interest to deliver benefits for all parties is important for ensuring mutually beneficial development of the economies of EU members and Ukraine. This article focuses on Poland, as it is based on discussions that IER conducted together with Polish colleagues from WEI.

Economic Foundation and New Roles of Ukrainians for EU Member States’ Economies

Today, over 850,000 Ukrainians work in Poland. They already constitute about 5% of the country’s workforce and generate added value for the economy. However, the nature of Ukrainian presence is transforming. If Ukrainians were previously perceived as “cheap labor” for seasonal work, they are now becoming a strategic resource in critical sectors, including construction, logistics, manufacturing, and healthcare. Many migrants are transitioning to long-term strategies, putting down roots, and investing in professional development. Ukrainians are establishing their own businesses in Poland across a wide range of sectors, with 150,000 sole proprietorships and thousands of companies already registered.

What Does Labor Market European Integration Offer?

EU integration would extend the principle of free movement of workers to Ukraine. Implementing changes in labor regulation is also important for the return of Ukrainians who worked in EU countries and their active integration into Ukraine’s labor market. This requires certain regulatory changes.

This includes, in particular, alignment of qualification systems. Ukraine is already working on creating qualification centers that will allow confirmation of skills acquired in the EU. For this, Ukraine needs to ensure full alignment of the National Qualifications Framework with the European Qualifications Framework, as well as adopt professional standards. Further discussion is needed regarding regulated professions, as well as areas where access to employment will be eased not only for Ukrainians returning from abroad, but also for workers from EU countries. The latter will be a consequence of introducing free movement of workers, provided for by our commitments as part of aligning with the EU acquis.

It is important to realize that EU membership means the possibility of human capital circulation. Instead of irreversible emigration (“brain drain”), integration allows creating a model where experience gained in Poland or Germany will later support Ukraine’s recovery. Therefore, a critically important task for the government will be creating a favorable business climate and improving the quality of life for people in Ukraine. This includes, among other things, accessibility of quality medical and educational services.

A favorable business climate will mean that Ukrainians who have now created businesses in Poland will also be able to create companies and work in Ukraine. Poland has essentially become a platform where Ukrainian business learns to work according to European rules, to then scale across many other countries.

Tension of Interest: Competition for Labor Force is High

Despite common goals, there are objective lines of tension between Ukraine and Poland, which already exist and will remain relevant for relations with other EU countries.

  1. Competition for workers/talents. Poland faces a deep demographic crisis and is estimated to need another 2.5 million workers by the end of 2025. At the same time, Ukraine critically needs these same specialists (construction workers, engineers, medical workers) for its own recovery. Both countries are essentially competing for the same human resources.
  2. Outdated legal framework. The bilateral agreement on employment between Poland and Ukraine was concluded back in 1995. It does not account for either the realities of full-scale war, the status of temporary protection, or Ukraine’s future EU membership. This problem can be solved by updating the agreement now or after Ukraine’s accession to the EU and the actual creation of a common labor market.
  3. Loss of qualifications. A significant portion of Ukrainians in Poland (and generally in other states) work in jobs that do not correspond to their education, due to complex diploma recognition procedures and language barriers. This is a waste potential that does not bring full benefits to either side. Therefore, there is a need for steps to recognize qualifications and simplify recognition procedures both in Ukraine and in Poland.

Can Conflicts Be Overcome and Interests Balanced?

To build a harmonious labor market, it is necessary to shift from emotional narratives to pragmatic dialogue. It is important that new legal frameworks allow legal mobility of workers and satisfy the needs of both economies. This could include, in particular, creating shared vacancy databases and professional standards, so that information about opportunities in Ukraine is accessible to those currently abroad. Poland already uses the Occupation Barometer (Barometr zawodów), through which labor market fund resources are directed to training specialists in deficit sectors. Similar experience should be implemented in Ukraine.

It is important that both states work on more actively engaging economically inactive groups in the labor market. This will somewhat reduce the importance of attracting migrants.

Business should pay attention to groups that were previously ignored. This includes the group sometimes called ‘silver economy’: people aged 50+. This is a colossal resource of experienced specialists. Their retraining is a strategic priority.

Another important group is labor market inclusion of persons with disabilities, who in Ukraine are often veterans. Businesses must become socially oriented, create conditions for people with impairments and health conditions (e.g., visual/hearing impairments, PTSD), and help them adapt to civilian employment. It is important to ensure flexible work schedules and workplace accessibility. The importance of an adult education system, which is still underdeveloped in Ukraine, and recognition of qualifications is also growing.

Attracting women to various professions, including those traditionally considered “male,” is becoming important in Ukraine. Before the full-scale war, and most likely now as well, women’s participation in the labor force was quite low. To attract women, employers must implement flexible schedules, children’s rooms, and maternity support programs. At the same time, accessibility of preschool education (kindergartens) is also important.

Another group for which the unemployment rate is often higher than for others is youth. Sometimes this is a consequence of a skills mismatch. That is why businesses should start working more actively with vocational education institutions, as well as higher educational institutions. Direct communication of labor market needs will allow adjusting curricula. Access to housing for youth, including dormitories or rental support from employers, will allow better competition for the labor force.

Ukraine has traditionally been characterized by low productivity, which creates a need for technological breakthroughs. When there is a shortage of workers, the solution becomes automation, the adoption of robotics, and the use of artificial intelligence. Experience shows that reviewing business processes allows attracting fewer workers, making work more efficient and intellectual. This is the path to increasing labor productivity, which is critical for European competitiveness. This also requires favorable regulation, not bureaucratic processes, and here it is not so much about Ukraine as about the EU as a whole.

The return of Ukrainians cannot be forced. It will only happen with guarantees of security, access to quality education, medicine, and housing. Poland already understands that without access to quality educational, medical, and social services, migrants will not stay in the country, but will move further. Ukraine must learn this lesson for its repatriation policy: competition is very high not only with Poland, but also with other EU states.

To Sum Up…

European integration is not a zero-sum game where one side must necessarily lose. It is a path to creating an ecosystem where EU members, including Ukraine and Poland in the future, can be partners. We need to lower the temperature of the debate, which is often fueled by politicians, and focus on people’s real needs.

Ukraine must become so attractive and safe that people return not out of duty, but because of opportunities. At the same time, we must be prepared for the fact that in the future, Polish specialists will also want to work in Ukrainian companies on large-scale recovery projects. Of course, for this we first need stable peace and clear security guarantees from international partners. However, it is already urgently necessary to implement changes in labor market legislation, business regulation, and other areas. EU membership means not only opportunities, but also intensified competition – for capital and people.


The article was prepared based on a discussion that took place within the project “Common Future. Poland and Ukraine in the Single European Market” on November 20, 2025. The discussion was conducted with support from the International Renaissance Foundation and is available at https://www.youtube.com/watch?v=Wrb_MGOFgfo 


The article was originally published in Ukrainian at European Truth: https://www.eurointegration.com.ua/articles/2026/01/5/7228252/ 


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