Ukraine continues to face high poverty and rising inequality in the fourth year of Russia’s invasion, with a preliminary poverty rate of 36.9% in 2025, similar to 2024 levels and significantly above pre-2022 rates. Income inequality has worsened, with the Gini coefficient increasing from 0.41 in 2023 to 0.50 in 2025, driven largely by uneven declines in labor incomes and real-term reductions in pensions that have disproportionately affected poorer households.
Vulnerable groups are increasing, with about one-quarter of households including at least one internally displaced person, veteran, or person with a disability resulting from the invasion. Specifically, 9.2% of households include a disabled member due to the conflict, while 9.4% report having a veteran in the household. These dynamics underscore the heightened social and economic pressures on specific populations.
Labor market frictions and skills mismatches persist, with unemployment rising slightly to 13.1% in 2025 from 11.5% in 2023. Vulnerable groups, including women, face substantial employment barriers due to care responsibilities, social norms, and regulatory shortcomings. High-skilled sectors such as IT, finance, and defense see rising wages, while low-skilled workers and vulnerable households experience stagnant or declining incomes. Only 35% of households in the bottom 20% report labor income, compared with over 90% in the top 20%. Investments in the care economy and targeted labor programs are essential to address persistent gender gaps and support employment for vulnerable populations.
Regional and spatial inequalities are deepening, with population and economic activity shifting westward. Western oblasts and Kyiv city report higher rates of wage-earning households, while regions experiencing active hostilities face higher food insecurity and asset losses, with nearly half of households in affected areas reporting damaged homes or assets compared to just 7% in the West. Focused regional labor policies and geographic targeting are critical to address these disparities.
Social support and public services remain essential for households, particularly the poorest. In Q3 2025, 72% of households with vulnerable members received public transfers compared to 60% of other households. Disruptions in water and electricity supply persist, with 17.6% of households reporting water issues in the past month. Access to medicines and healthcare is also more difficult for vulnerable groups, with one-third paying out of pocket for services compared to one-quarter of households without vulnerable members. Targeted and adaptive social safety nets are therefore critical policy tools in the current Ukrainian context.
Public attitudes show broad support for measures that assist vulnerable groups, particularly veterans and their families, highlighting the societal recognition of the need for sustained support and protection for those most affected by the ongoing conflict.
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