External Labour Migration in Ukraine as a Factor in Socio-demographic and Economic Development

Abstract

The paper focuses on the role of labor migration in Ukrainian development, particularly its impact upon demographics and the labor market. The author evaluates the real size and composition of the resident population of Ukraine. It is demonstrated that the de facto population is almost 1.5% smaller than its official size. The impact of external labor migration on the unemployment level is studied. It is demonstrated that without labor migration the unemployment level in Ukraine would be almost twice as high as the registered level. Special attention is paid to the entrepreneurial potential of labor migrants and its possible financial effects. It is proved that the main challenge associated with labor migration policy in the country is the underestimation of the possibility of using the entrepreneurial potential of labor migrants and their relatives staying in Ukraine. The potential financial benefits from the entrepreneurial activities of migrants and their relatives exceeds 1 billion hryvnias (around 100 million euros) as of 2010. It is demonstrated that in 10-12 years Ukraine will face a workforce deficit. Ukraine will need employable-age migrants up until 2061, namely 7.9 mln. people. The need to pursue a more proactive policy of immigrant integration is justified. Based on the analysis performed, recommendations for improvements in Ukrainian state policy are developed and justified, including measures in the field of emigration regulation, as well as the attraction and integration of immigrants.