Exodus of Ukrainian workers hits Europe's emerging economies

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Exodus of Ukrainian workers hits Europe's emerging economies
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Some European companies are looking further afield to countries like Mongolia and the Philippines to address labor shortages, but many vacancies remain unfilled.

“The loss of Ukrainian workers has deepened the problems companies are facing,” Radek Spicar, vice president of the Czech Federation of Industry, told Reuters. “Companies say they can’t cover all the demand from business partners: they deliver with delays and pay penalties.”With industrial production contributing to 30% of gross domestic product, the Czech Republic ranks as the EU’s most industrialized nation. Poland follows closely behind at 25%.

“If this cannot be resolved quickly and opportunities for recruiting foreign candidates are not strengthened, it will have major implications, especially for manufacturing companies,” Hrbackova told Reuters. For Scanfil – a Finnish company specialized in electronics manufacturing, assembly, and production outsourcing – the swift loss of workers from the labor market in Poland, where it has operations, reinforced plans to boost automation.

Some companies are bumping up salary offers to attract replacement workers, seeking to lure local workers and stave off competing firms for the limited number of Ukrainians. The shortage has also forced companies to rethink how they work and look further afield to countries like Mongolia and the Philippines where language, travel, and visa issues make it difficult to quickly fill vacancies.

Companies such as construction firm Inpro in Poland are also turning to prefabricated elements to keep construction projects on time. Others are extending working hours and training women for positions traditionally occupied by men, such as operating forklifts.

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