# Nearly 5 million jobs lost in Ukraine as war pummels economy – ILO
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-11
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Ukraine Job Losses Soar Amid Russian Invasion, ILO Study
Meta Description: Learn how Ukraine has lost 4.8 million jobs due to the conflict, with potential for 7 million more. Discover impact on neighbouring countries and global economy.
URL: https://financedigest.com/nearly-5-million-jobs-lost-in-ukraine-as-war-pummels-economy-ilohtml

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LONDON (Reuters) – Around 4.8 million jobs have been lost in Ukraine since the start of the Russian invasion in February, as the conflict shut down businesses, strangled exports and drove millions to flee, the International Labour Organisation (ILO) said on Wednesday.

The job losses, which account for around 30% of Ukraine’s workforce before the invasion, could climb to 7 million if hostilities continue, the ILO said in a study, adding that 3.4 million jobs could return rapidly in the event of a ceasefire.

The war could also drive up unemployment in neighbouring countries hosting millions of refugees and hit Central Asian economies 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](https://www.financedigest.com/euro-zone-economy-sentiment-rises-in-dec-first-time-since-start-of-ukraine-war.html "Euro zone economy sentiment rises in Dec, first time since start of Ukraine war") 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](https://www.financedigest.com/flood-most-damaging-peril-of-2016-causing-nearly-one-third-of-210bn-global-economic-losses-according-to-aon-catastrophe-report.html "Flood most damaging peril of 2016, causing nearly one-third of 0bn global economic losses – according to Aon catastrophe report") 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](https://www.financedigest.com/top-10-fastest-bikes-in-the-world.html "Top 10 fastest bikes in the world") War,” it said.

Neighbouring countries such as Poland and Romania have absorbed the bulk of the refugees, an [estimated 1.2 million](https://www.financedigest.com/spotifys-monthly-active-users-top-500-million-beat-estimate.html "Spotify’s monthly active users top 500 million, beat estimate") of whom were working prior to the invasion.

A protracted conflict will put sustained pressure on [labour markets](https://www.financedigest.com/spains-labour-market-resilient-as-unemployment-drops-in-nov.html "Spain’s labour market resilient as unemployment drops in Nov") and welfare systems in those countries, likely driving up unemployment, the study said.

As a hypothetical exercise, adding these refugees to the number of unemployed would raise the [unemployment rate](https://www.financedigest.com/u-s-job-growth-powers-ahead-unemployment-rate-at-3-4.html "U.S. job growth powers ahead; unemployment rate at 3.4%") in Poland from 3 per cent to 5.3 per cent,” it said.

The [war could also have a spillover effect on countries in Central Asia that are heavily dependent on remittances sent by migrants working in Russia](https://www.financedigest.com/analysis-action-wanes-at-u-n-to-isolate-russia-almost-six-months-into-ukraine-war.html "Analysis: Action wanes at U.N. to isolate Russia almost six months into Ukraine war").

An economic downtown in Russia, squeezed by Western sanctions and the costs of the war, could lead to migrant [workers losing](https://www.financedigest.com/amazon-loses-bid-to-throw-out-case-by-uk-drivers-seeking-worker-rights.html "Amazon loses bid to throw out case by UK drivers seeking worker rights") their jobs and returning home, the study said.

Globally, the war in Ukraine is exacerbating rising food and energy prices, threatening jobs and real wage growth particularly in low and middle [income countries that are still recovering from the coronavirus pandemic](https://www.financedigest.com/uk-income-inequality-widens-after-pandemic-dip.html "UK income inequality widens after pandemic dip"), it said.

(Reporting by Matthias Williams; Editing by Hugh Lawson)


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