How the Ukrainian war has impacted businesses and the recruitment industry in 2022

The Ukraine war has already had a huge impact on the future of Europe. The Russian stock market has crashed, Belarus is now isolated as Russia’s only ally and the rest of Europe is more united than we’ve seen in a long time by its support of Ukraine. The lasting impacts of the war will no doubt be felt across Europe and the world for decades. In this article, we’ll explore how the Ukrainian war has impacted businesses and the recruitment industry so far and what impacts we’re expecting to see further into 2022.

How the Ukrainian war has impacted businesses and the recruitment industry so far

For businesses across Europe, the war will already have taken its toll on operations across many sectors. In recruitment, the most significant impact so far will certainly have been the loss of talented employees who have left Ukraine to seek refuge elsewhere. This has resulted in a lack of qualified workers in Ukraine, which has made it difficult for businesses to find and hire qualified executives and specialists. In EU countries willing to give Ukrainian refugees the right to live and work in their country during the course of the war, an abundance of new talent in the national workforce might lead to increased competition, particularly in unskilled jobs across Europe.

A large part of the issue here is logistics. With a huge area of Eastern Europe effectively ‘off-limits’ for transport and travel, shipping products from A to B is getting more difficult and more expensive. Even air travel is limited due to the closure of Russian airspace, which means longer flight times and fewer flights. This also leads to higher transport costs, which are inevitably passed on to the consumer in the form of higher prices – which, during a period when the cost of living is rising faster than it has in a long time, many consumers may not be willing to pay.

What further impacts can we expect to see throughout 2022?

Nobody knows just how the course of the war will proceed, but there are some consequences of the conflict that are already set in motion. The exodus of talent from Ukraine is likely to have a significant impact on the Ukrainian economy for years to come, as those who have left are likely to be some of the most skilled and experienced members of Ukraine’s workforce. Russia, too, is unlikely to be able to recover from the hit its economy has taken over the past month.

In recruitment, we can expect to see a rise in competition for skilled workers as businesses scramble to find qualified employees. This may lead to an increase in wages for skilled workers, while unskilled workers could see the opposite as an increased number of refugees settling in Europe leads to increased competition for unskilled jobs. For recruiters working with high-level roles, 2022 could be an interesting year that requires something of a balancing act to ensure that employers find high-quality candidates with the right skills while candidates secure suitable compensation for their skills in a market that favours them.

The IT and tech sectors could be particularly affected by the war. Companies who hire Ukrainian workers, such as tech companies working with remote developers and strategists, face the prospect of their employees being drafted to fight in the war. Ukraine’s IT industry grew by in 2020, and many of those young, male IT professionals will now be drafted, leaving hundreds of IT and tech companies without key members of staff. For candidates working in tech, now could be the time to search for new roles.

How will the global economy fare?

The Russia-Ukraine war has already had a significant impact on the global economy. The timing of the war, following on the heels of a devastating pandemic, has only served to multiply the impacts of the latter. Higher costs and rising inflation throughout Europe and the US means that businesses around the world are struggling to balance the books, with many companies being forced to cut back on their operations or even close down altogether.

In March 2020, global stock markets took their worst hit since the 2008 market crash, with the Dow Jones falling a record 2,352.60 points in a single day. In the two years since, the markets have recovered to reach an all-time high once again. While the world currently reverberates with the echoes of the conflict in Ukraine, just how long these impacts will last is difficult to say.

Who we are

CNA International is an elite, executive-level recruitment firm working across the world to match the best candidates to top roles. We are committed to providing a high-level service, working with our clients to identify opportunities from around the world in all sectors and levels.

If you’re interested in finding out about how we could help your business then please contact us on +44 (0) 1676 822 222 to start the conversation.

Leave a comment