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Thematic Assessment of Local Enterprises and Labour Markets in Eastern Ukraine - March 2017

Methodology: 
The assessment adopted a mixed-methodology approach to collect qualitative and quantitative data: household surveys of the working-age population, local enterprise surveys, Key Informant interviews (KIIs) with labour centres and universities, and Focus Group Discussions (FGDs) with representatives of the working-age population. REACH felt this methodology would develop the broadest possible picture of eastern Ukraine’s economic situation, contextualising primary statistical data through qualitative information and triangulating findings through an extensive secondary data review. Before primary data collection began, REACH conducted a secondary data review to identify information gaps and contextualise the data collected throughout the assessment. Primary data collection was conducted in December 2016 using a mixed-methods approach. For primary data collection at the individual and business survey level, the confidence interval and margin of error for statistical significance was 90% and 7%.
Key findings: 
Key findings from the assessment included: a. Businesses are suffering from disrupted trade relationships and a lack of demand for products. Since the conflict began, 70% of assessed businesses have reported decreasing revenues, and workforces have shrunk in 24% of surveyed enterprises. b. Conflict has had a negative impact on employment security as almost one-fifth of active households lost employment since the conflict began. Additionally, 57% of households surveyed had difficulties meeting their essential needs. The impact of conflict on individuals’ employment varied between the oblasts, with Luhansk and Donetsk most impacted at the individual level. c. Businesses assessed identified a skills gap that makes recruitment difficult. There is a lack of skills development because vocational training centres are not operating at pre-conflict levels, and access to university education is difficult for some students. d. Access to credit for businesses in the eastern oblasts is low, with few banks willing to loan and interest rates consequently high. In addition, there is little foreign investment in the area. Facilities and production technologies are outdated and require significant investment to remain competitive.
Assessment Report: 
Publicly Available
Assessment Questionnaire: 
Available on Request
Assessment Data: 
Available on Request
Webspace(s): 
Assessment Date(s): 
01 Mar 2017 to 31 Mar 2017
Status: 
Report completed
Unit(s) of Measurement: 
Households
Collection Method(s): 
Mixed
Population Type(s): 
All affected population
Leading/Coordinating Organization(s): 
REACH Initiative
Participating Organization(s): 
Food Security Cluster - Ukraine
World Food Programme
People in Need
Danish Refugee Council
International Organization for Migration
United Nations Office for the Coordination of Humanitarian Affairs
Mercy Corps
Location(s): 
Dnipropetrovska Oblast
Donetska Oblast
Luhanska Oblast
Kharkivska Oblast
Other location: 
Zaporizhia