Danish Government-Funded ILO Project Delivers Significant Results in Ukraine’s Labor Market

A Danish Government-funded project to support employment and entrepreneurship in Ukraine has successfully concluded, leaving a positive impact on the country’s labor market.

The six-year project, “Inclusive Labor Markets for Job Creation in Ukraine,” aimed to bolster entrepreneurship, improve social dialogue, and provide critical support to businesses and workers affected by the ongoing conflict. Despite the challenges posed by the COVID-19 pandemic and the Russian invasion, the project achieved significant outcomes.

The project restructured the State Employment Service (SES) and introduced new services to enhance employment support, including registrars, employment and specialized employment counsellors, and employers’ counsellors. SES staff were also trained in a new case management system to provide more effective support to job seekers and the unemployed.

The project successfully implemented the ILO’s Local Employment Partnership (LEP) model in four Ukrainian regions. LEPs are coalitions of local labor market institutions, educational institutions, NGOs, and employers that work to create job opportunities aligned with local needs.

The “Start and Improve Your Business” (SIYB) program trained over 4,800 individuals, surpassing its initial target. SIYB has now been officially adopted as the national entrepreneurship development program in Ukraine.

The project digitized ten vocational curricula and upgraded four with the involvement of the business sector, aligning workforce skills with market demands.

Key achievements in strengthening social dialogue and labor relations include the development of a Green Paper on modernizing social dialogue and strengthening legal aid systems for workers’ organizations. New trade unions were established, and members of the Federation of Employers of Ukraine received occupational safety and health training services.

The project, funded by the Danish Government with DKK 54 million (approximately USD 8.3 million) and complemented by USD 1.1 million from the German development agency GIZ, has made a valuable contribution to the recovery and development of Ukraine’s labor market.