The International Labour Organisation (ILO) has launched a five-year program to create inclusive employment opportunities in Ukraine.

The new program brings together businesses, schools, employment services, the social partners and other civil society organizations to create jobs for youth, women and people in rural areas. The ILO said it is the single biggest project in South-Eastern Europe to promote jobs in Ukraine.

The program, funded by the Government of Denmark, builds on the development of local networks and partnerships since they are in the best position to address the employment challenges of their own communities.

“In Ukraine jobs are scarce, with youth, women and people living in rural areas disproportionately affected,” the ILO said. “A high percentage of Ukrainians are in informal or undeclared work: the informal economy represents 25% of the country’s GDP.” The ILO added that 1.5 million young people are considered NEET (neither in employment nor in education) and a skills mismatch is a major challenge for youth as many of them are overqualified for their work.

“About 5.8 million Ukrainians live abroad and combined with an ageing society, some sectors struggle with a severe lack of skilled labour,” the ILO said. “With USD 117 and USD 200 respectively, minimum and average monthly wages are low (affecting living conditions and standards considerably.)

Andriy Reva, Minister of Social Policy of Ukraine, said, “It is not money that the country needs in the first place but high-level expertise to improve labour market policies in Ukraine.”

Heinz Koller, ILO Assistant Director-General and Regional Director for Europe and Central Asia, said that the ILO would bring on board its institutional expertise on entrepreneurship promotion, skills development, local employment partnerships and social dialogue between government and the social partners. The project will also bring on board the Danish social partners who will make available their expertise to employer organizations and trade unions in Ukraine.