EU and ILO Launch New Initiative to Support Ukraine’s Labour Market Transformation

The European Union (EU) and the International Labour Organization (ILO) signed a landmark partnership deal, equating to EUR 3.8 million, to support the modernisation of Ukraine’s labour market, strengthening social dialogue, and advancing youth employment through the preparations for the implementation of the Youth Guarantee initiative.

The project, titled "Promoting Inclusive Labour Market Governance Reform in Support of Ukraine's Reconstruction and EU Accession," will run for 36 months from October 15, 2025, to October 14, 2028, with a total budget of EUR 3.8 million and EU contribution of EUR 3.5 million.

Building Foundations for Recovery and EU Integration

"The European Union stands firmly with Ukraine as it advances on its path toward EU accession and post-war recovery," said Katarína Mathernová, Ambassador of the EU to Ukraine. "Through this project, we are supporting the creation of a more inclusive and resilient labour market—one that empowers workers, strengthens institutions, and upholds European and international labour standards. By promoting effective social dialogue and ensuring that women, youth, displaced persons, people with disabilities, and veterans can fully participate in Ukraine's reconstruction, we are helping to build a future rooted in dignity, fairness, and opportunity for all Ukrainians."

Aida Lindmeier, Director of the ILO Office in Ukraine, emphasized the critical timing of this initiative: "As Ukraine pursues its ambitious reform agenda alongside reconstruction efforts, effective tripartite consultation and institutional capacity building are essential. This project will help address structural labour market challenges while fostering collective ownership of the recovery process."

Addressing Ukraine's Labour Market Challenges

ILO estimates indicate that Ukraine's reconstruction efforts will require an additional 8.7 million workers to the labour market. The project addresses this challenge through a comprehensive strategy focused on:

• Strengthening Social Dialogue: Revitalizing the National Tripartite Social and Economic Council to enable constructive dialogue among government, employers, and workers
• Labour Law Reform: Supporting the development of a new Labour Code aligned with EU acquis and international labour standards
• Institutional Capacity Building: Enhancing the capabilities of key institutions including the State Employment Services, State Labour Service, and National Conciliation and Mediation Service
• Strategic Policy Development: Assisting  the creation and implementation of a new National Employment Strategy
• Youth Guarantee Implementation: Advancing Ukraine's Youth Guarantee Plan to improve youth employability and inclusion

Key Project Outcomes

Over the three-year implementation period, the project will deliver:

1. Enhanced tripartite social dialogue enabling national authorities and social partners to effectively address key reform and recovery priorities
2. Strengthened labour market institutions with improved capacity to promote compliance with national labour laws and policies
3. Alignment with international labour standards and relevant EU acquis, particularly under EU accession Chapters 2 (Free Movement of Workers) and 19 (Social Policy and Employment)
4. Inclusive employment policies that support the integration of women, youth, internally displaced persons, persons with disabilities, and war veterans

Wide-Ranging Impact

The project’s operations will include direct cooperation with the Ministry of Economy, State Employment Services, Ministry of Youth and Sports, trade unions, and employers' organizations. Target beneficiaries include the active population, with a special focus on women, youth, internally displaced persons, returnees, persons with disabilities, and veterans.

By aligning labour market reforms with EU acquis and international labour standards, the project aims to reduce inequalities and negative labour market outcomes, giving rise to a more resilient, inclusive, fair, and dynamic labour market better suited to support Ukraine's growth, reconstruction, and social development goals.

For media inquiries

The European Union Delegation to Ukraine: delegation-ukraine@eeas.europa.eu 
International Labour Organisation Office in Ukraine: korotka@ilo.org