The issue of low labor productivity in Ukraine is once again under discussion in the media, sparked by statements from MPs Hetmantsev and Hurin. Hetmantsev highlighted that Ukrainian productivity significantly lags behind European levels, attributing this gap to outdated technologies and inefficient management. Hurin focused on worker qualifications, putting emphasis on individual responsibility, which fueled further debate.
Experts, however, argue that the main reason lies not with workers themselves, but in the conditions in which they work. Ukrainians, having a high work ethic and the ability to save, often perform much better abroad. Within Ukraine, suboptimal capital allocation, monopolies, distorted market mechanisms, inefficient regulations, and expensive resources hinder results.
The unreformed fiscal system and excessive reporting burden are particularly impactful. Capital fails to flow where needed due to low competition, lack of transparency, ineffective subsidies, and monopolies. In addition, the full-scale war has undermined trust in the financial system, the currency, and investment climate.
Labor productivity will inevitably grow after regulatory reforms, the implementation of market mechanisms, increased investment, and the creation of conditions for capital accumulation and accessibility. Without changes, the economy will continue to lag behind European indicators, and wages will remain lower than in the West. Experts recommend working to create natural market signals, support modernization, and invest in education and entrepreneurship.
The article concludes by encouraging Ukrainians to invest in their own prosperity, education, and the modernization of the country and society.
