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28 March 2024

Slovakia: Economic contributions of people displaced from Ukraine

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Since the onset of Russia's ongoing, full-scale invasion of Ukraine in February 2022, Slovakian media has frequently debated the notion of people displaced from Ukraine 'taking jobs' in Slovakia. This public discourse has conveyed mixed messages. Although Slovakia faces significant labour shortages, there has been concern that new arrivals to Slovakia from Ukraine - who have the right to work and conduct business in Slovakia - might threaten economic opportunities for Slovaks. However, the reality is quite the opposite: research finds that people displaced from Ukraine do not pose a threat to the Slovak economy and labour market; rather they have a highly positive impact on both.

According to an analysis by the SME Daily, from spring 2022 to mid-2023 2 500 people displaced from Ukraine transitioned from so-called 'temporary refuge' to 'temporary residence' for business purposes. Out of more than 3 000 commercial companies of which Ukrainians are owners or ultimate beneficial owners, almost 750 were established in the last 2 years. These countries contribute to economic development, with some reporting remarkably high turnovers and, through taxes and employment, significantly bolstering Slovakia's GDP.

Ukrainians also contribute substantially to the labour market in Slovakia. As of January 2024, nearly 40 000 employees of Ukrainian nationality were working in Slovakia, which is twice as many as before the outbreak of war in 2022. Structurally, and not necessarily in keeping with their own skill levels, Ukrainians in Slovakia often occupy lower-skilled positions in sectors facing long-term labour shortages such as industry, services, the automotive industry, and agriculture. Further, people displaced from Ukraine support the Slovak economy by purchasing goods and services.

At the same time, Slovakia continues to face some significant challenges in providing fair and meaningful access for Ukrainians. Complex and protracted procedures for recognising qualifications or applying professional credentials, compounded by inconsistent policy support for this group as refugees (with unclear future prospects regarding rules for supported housing and temporary stay stability), can hinder the full realisation of the potential of people displaced from Ukraine in the workforce and economic sector in Slovakia.

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Slovakia
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Posted by
Martina Sekulova
Country Coordinator

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