A Danish-funded project concludes in Ukraine, improving labor market reforms, fostering entrepreneurship, and supporting workers affected by the war.
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| The ILO and Danish Government complete a project in Ukraine, transforming employment services and strengthening social dialogue during the war. Image Courtesy: ILO |
A six-year project funded by the Danish Government has successfully concluded in Ukraine, marking a major milestone in the country’s efforts to reform its labor market and support businesses and workers affected by the ongoing conflict. The project, titled “Inclusive Labor Markets for Job Creation in Ukraine,” was launched in 2018 with the aim of fostering entrepreneurship, improving social dialogue, and providing critical support to workers during unprecedented challenges, including the COVID-19 pandemic and the Russian invasion of Ukraine.
Despite these formidable obstacles, the project achieved remarkable results. A central element was the comprehensive reform of the State Employment Service (SES), where the introduction of new services, such as registrars and employment counsellors, significantly enhanced employment support across Ukraine. SES staff were trained in a new case management system, which facilitated better collaboration with related institutions, including medical rehabilitation centers and social affairs departments. This reform was crucial in making employment services more accessible and effective for job seekers.
The project also implemented Local Employment Partnerships (LEPs) in four regions, bringing together local institutions, educational centers, NGOs, and employers to create job opportunities tailored to local labor market needs. These partnerships introduced new occupational standards and training programs, such as a training center for upholstery in Sarny, developed with Denmark’s SKIVE College, and an upgraded training center in Kherson. These initiatives addressed skills gaps in the labor market and contributed to workforce development in key industries.
In addition, the project supported entrepreneurship development through the "Start and Improve Your Business" (SIYB) program, which trained 4,804 individuals, surpassing the original target of 4,500. The SIYB program has now been officially adopted by the Ukrainian government as the national framework for entrepreneurship development, creating a new generation of entrepreneurs despite the ongoing conflict.
The project also made strides in strengthening social dialogue and labor relations. It facilitated the creation of two new trade unions—one for deminers at The Halo Trust, and another for transport workers in Kryvyi Rih. Furthermore, the project supported conflict resolution mechanisms and provided legal aid services to Ukraine’s largest workers’ organizations.
As the project concludes, the Danish Government has committed to further supporting Ukraine with a new 1.5 million USD project, launching in November 2024. This new initiative will focus on implementing LEPs in Odesa and Mykolaiv, fostering entrepreneurship among vulnerable groups such as women, war veterans, and individuals with disabilities. Additionally, it will provide training and retraining for the unemployed and internally displaced persons (IDPs), while continuing to strengthen social dialogue at both the regional and sectoral levels.
Claire Harasty, ILO Director for Central and Eastern Europe, praised the project’s resilience, stating that the reforms provide a strong foundation for future progress as Ukraine navigates its path through conflict and recovery.