EU and ILO Launch €3.8 Million Initiative to Transform Ukraine’s Labour Market

The EU and International Labour Organization (ILO) launch a large-scale initiative to modernize the Ukrainian labor market and support Ukraine's path to the EU.

The Gaze reports on it, referring to the EU Delegation to Ukraine.

The European Union and the International Labour Organization have announced the launch of a new €3.8 million strategic initiative aimed at radically transforming the Ukrainian labour market, strengthening social dialogue and creating more opportunities for young people.

This project is expected to be a powerful step towards Ukraine's post-war recovery and preparation for membership in the European Union.

The program, “Promoting Inclusive Labour Market Governance Reform in Support of Ukraine's Reconstruction and EU Accession,” will run for three years, from October 2025 to October 2028, and will be implemented in partnership with Ukrainian government agencies, trade unions, and employers. The EU is providing €3.5 million out of a total budget of €3.8 million.

“The European Union continues to support Ukraine on its path to EU accession and post-war reconstruction,” said EU Ambassador to Ukraine Katarina Mathernova.

She emphasized that through this project, the EU is promoting the creation of an inclusive and sustainable labor market that expands opportunities for workers, strengthens institutions, and meets European and international standards.

Aida Lindmeier, Director of the ILO Office in Ukraine, also noted that the initiative comes at a crucial moment.

“As Ukraine reforms its institutions and rebuilds the country, it is important to ensure effective social dialogue and tripartite cooperation. This project will help overcome structural problems in the labor market and promote shared responsibility for the recovery process,” she said.

According to ILO estimates, Ukraine needs an additional 8.7 million workers for effective economic recovery. 

Thus, the project envisages:

• the resumption of the work of the National Tripartite Social and Economic Council.
• the development of a new Labor Code, harmonized with the EU acquis.
• support for the State Employment Service, the State Labor Service, and other key structures.
• the development of a new National Employment Strategy.
• launching a program to increase youth employment.

Over three years, the initiative aims to ensure effective tripartite social dialogue, strengthen labor market institutions, align Ukrainian legislation with EU standards, and promote the creation of inclusive employment policies.

The program will be implemented in cooperation with the Ministry of Economy, the State Employment Service, the Ministry of Youth and Sports, trade unions, and employers' organizations. The main beneficiaries include women, youth, internally displaced persons, veterans, and people with disabilities.

Read more on The Gaze: (Re)Building Ukraine’s Economy as a Pillar of Regional Stability and Security