Quarantine and its implications for the labor market in Ukraine as of October 2020

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Greetings, Habr! Today we will talk about the state of the labor market in Ukraine for October 2020. What are the dynamics and what happened during the six months of quarantine. We will talk about both the applicant and the employer. Make yourself comfortable, let's go.



How it all began



In March 2020, quarantine was announced in Ukraine. 90% of companies (both state institutions and private enterprises - switched to “remote work.” Many were laid off, and the rest were cut wages. The lucky ones who continued to receive 100% payment were few and they were IT people and people from the digital sphere.



At first, for Our Slavic brother, everything was effective. People sat at home, wore masks in public places and adhered to basic hygiene rules. This did not last long, two or three weeks. Then the people began to riot, citing lack of finance and loss of work. Starting from mid-April 2020 years, people gradually left home in search of a new job / part-time job or returned to the office.



The panic intensified as jobs were declining exponentially. Nobody bought matches and salt, but speculation in the labor market increased decently. Wages fell by 20-30%, and a lot of low-paid jobs appeared. The demand for it has increased.



Second phase



By the beginning of May, the situation had escalated to the limit. People rushed in panic to any part-time jobs, but there was also a positive trend. Private businesses began to return their employees to the office. According to statistics, by mid-May, 80% of those who were remotely returned to the office.



From the side of fear of the virus, people have become more indifferent. Despite the pressure from the media, people trusted more word of mouth, where the news was less shocking. Warming also played a role. Everyone rushed into nature.



By the end of May, people were "killed" on the ongoing quarantine at the state level.



Two-faced employer



As is customary for our employer, if there is a crisis or emergency, then it lasts as long as possible. It is beneficial for the employer to escalate and prolong these situations in order to pay lower wages. This was the case in 2008-2009 and in 2013.



But our man is tenacious, you can't argue here. Entrepreneurship and the ability to spin, allowed 99.9% of the Ukrainian population to go to the seas in the summer. Yes, the majority occupied the territory of Ukraine, but our "businessmen" have inflated prices at the level of abroad. This did not prevent the "unemployed" complaining of a hard life to relax at the resorts.

It was funny to watch during the quarantine period, when Kiev was in traffic jams. Still, they sit at home. Where were all these people going?
The repression did not affect the IT market as much as everyone else. Engineers, managers, line specialists all have their tail between their legs. And what are you going to do? Within the confines of one country and city you will not go too far.



Many of my acquaintances, with rich experience and long work experience, were forced to lower the bar. Yes, most of them played hack-work, only this allowed them to reach the plus / minus tolerable level.



Summer time



As I said earlier, with the arrival of summer and the partial opening of borders, everyone rushed to rest. In parallel with this process, the salary fork thawed a little. The cut rates were returned to many, but there were still deprived ones.



Ukrainian resorts were overcrowded in 2020. Somewhere 70-80% traveled around Ukraine, and about 20% flew abroad.



Nobody reacted to the prohibitions and recommendations of the Ministry of Health. I don’t know where the truth is, but the statistics didn’t scare anyone.

I am a common sense supporter. During the entire quarantine period, I adhere to basic security measures.


Summing up the results of the summer, everyone arrived tanned and rested.



Do not count your chickens before they are hatched



Starting from the second half of August, HRs (those who survived the period of March-April layoffs) rushed to find new employees.



And what do you think? Many have adapted to new realities, mastered remote activities. I’ll tell you more, a decent proportion of employers have adopted the “remote work” model. Yes, this is not applicable in all spheres of activity, but wherever possible, the most appropriate. Savings on rent, communal flat. Remote motivation and KPIs are much simpler and more transparent.



At the moment (October 2020), the labor market in Ukraine is in limbo. The employer seems to be ready to recruit staff, but the applicant no longer runs, as in March-April, headlong. Many have mastered freelancing and understood its advantages.



Pluses of "remote":



  • residents of megalopolises do not need to stand in traffic jams;
  • saving money for travel, clothing;
  • it is comfortable to work at home in sweatpants and have snacks when it is convenient for you; - more time for family and freedom for walks.


The disadvantages are:



  • weakening of team spirit and teamwork;
  • hypercommunicative is difficult within 4 walls (although, in our time, every 2nd is a sociopath);
  • decreased immunity.


This is how I see it.



Outcome



In the bottom line, we have a situation in which the score is 1-1.



In the spring, the employer was wringing his hands, but now the applicant has adapted. It turns out that the applicant again regains the market, as it was 5-7 years ago in Ukraine.



How are things with you, in Russia and the former CIS countries? I will be glad to hear cool and not very stories.



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