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Impact of Deindustrialization on the Structure of the Economy and Labour Market: the Case of Ukraine

Author

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  • Oleksandr Pidchosa
  • Oleksandr Rogach

Abstract

Article discusses the process of deindustrialization of Ukrainian economy since 1991 and its impact on the economy structure and labour market. The authors propose periodization of the deindustrialization process which includes 4 main periods: 1991-2000 - Dramatic downsizing; 2001-2008 - Rapid growth; 2009-2013 - Cyclical period of economic recovery after the shock of the global financial crisis; and 2014-2019 - Restoration of stability. Their factors, features and influence are investigated in this study. The paper also assesses the link between deindustrialization and structural changes of the labour market during these periods of development. As a result of the study, it is concluded that the deindustrialization in periods of long-lasting transformation crisis in Ukraine has led to the waste of skillful workforce and rise of informal employment, whereas financialization has not resulted in increase of investments much-needed for modernization of the industrial sector and creation of highly productive jobs. The structure of employment has changed in favour of services.

Suggested Citation

  • Oleksandr Pidchosa & Oleksandr Rogach, 2021. "Impact of Deindustrialization on the Structure of the Economy and Labour Market: the Case of Ukraine," Journal Transition Studies Review, Transition Academia Press, vol. 28(1), pages 3-18.
    • Handle: RePEc:ase:jtsrta:v:28:y:2021:i:1:p:3-18:id:339
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