Ukraine | Understanding the Economic Landscape of War-Affected Ukraine
17 June 2024
In the wake of ongoing war, understanding the economic dynamics of Ukraine is imperative for effective humanitarian response and sustainable recovery efforts. Our recent two outputs: Calibration Report and Economic Situation overview delves into key insights, shedding light on humanitarian needs, income disparities, coping strategies, and employment challenges facing households across the country.
Income Disparities and Vulnerable Groups
The Report reveals income disparities among households directly affected by war. Vulnerable groups, including those with disabilities and female-headed households, face income levels below the national median. The median income per capita for households with disabilities is 4,000 UAH compared to the national median of 5,633 UAH. In addition, the number of households reporting relying on Government social benefits increased to 30% nationwide and ranked top-third among reported income sources after regular employment and pensions.
Coping Strategies in Response to Economic Strain
With diminished incomes and unstable employment opportunities, households resort to coping strategies to meet their basic needs. Almost 30% of households employ crisis coping strategies, such as reducing health expenses, taking on a second job, borrowing or eating cheaper food, while 18% report receiving humanitarian assistance in the three months prior to data collection.
Barriers to Employment and Economic Participation
The Situation Overview emphasizes that employment barriers, particularly for displaced individuals and women, exacerbate economic challenges. 34% of those displaced households reported facing challenges generating income due to a lack of work opportunities. Women aged 26-50, impacted by gender roles, report higher rates of housework and childcare responsibilities, limiting their workforce participation.
Agricultural Activity and Food Security
83% of the households who own land for agricultural use (51%) use it for their own consumption/livelihood. The war carries concerning implications for agricultural activity, particularly in areas retaken by the Government of Ukraine. Landmines and Explosive Remnants of War (ERW) are a notable safety concern for agricultural activity, with most civilian landmine and ERW casualties having occurred during agricultural work.
Final Thoughts
While some households demonstrate resilience, stress and crisis coping strategies remain prevalent. The economic landscape of war-affected Ukraine presents multifaceted challenges, but also opportunities for targeted interventions and sustainable recovery. By leveraging data-driven insights and collaborative efforts, we inform the humanitarian response and early recovery actors for their decision-making.
Access the full Calibration report and Situation Overview for comprehensive insights and recommendations:
