SOCIO-ECONOMIC CONDITIONS OF FORCIBLY DISPLACED PERSONS

SOCIO-ECONOMIC CONDITIONS OF FORCIBLY DISPLACED PERSONS based on the clients of Public Organization The Center for Employment of Free People who visited NGO in 2015 The translation of the research into English was performed with the support of Ukraine NGO Forum

Table of Contents Research overview Research methodology Employment and unemployment Job search strategies Experience with the Governmental Employment Service Socio-psychological conditions of respondents Socio-demographic indices of respondents Research description 2

Research Overview Unemployment rate among respondents is 21%. It is almost twice more than the same index for Ukraine at the time of the research. Unemployment rate among females is slightly higher than among males (22.6% vs 19.6%), which is in line with all-ukrainian indices. Youth unemployment (18-30 years old) is higher than among other age groups (31-40 and 41-50 years old): 24.7%, 20.0% and 18.0% respectively. Among those respondents who have an experience of job search before their displacement the unemployment rate is lower than among those for whom job search is a new life experience. It is harder to find a job for low-paid research participants than for those high-paid; the unemployment rate in the first group is almost 37%, while in the second it is 14%. Respondents living in Kyiv or oblast centers have better chances to find a job than those who live in other towns (18.2% vs 25.8%). Unemployment varies greatly from one macroeconomic region to another: in Central Ukraine it is 15.9%, in Eastern 19.3%, and in Southern 33.8%. 32% of respondents work permanently full time 5 days a week; while 28% work at temporary jobs. Employment of those respondents who work full time is stable conventionally; only 17% are working at current work place for more than a year, 35% are working from 6 to 12 months. Every second respondent had to change his or her field after displacement; moreover, every second is employed at a lower position. Only 38% of clients agree that they are employed at a similar position. 3

Taking into account the unemployment rate among respondents the most effective way to search a job is turning to job searching NGOs (unemployment rate 19.8%), reading newspapers and magazines specialized in employment (19.5%), and surfing job searching web-sites (19.0%) Generally, three strategies of job search can be distinguished. The first traditional one is a job search through specialized printed media, bulletin boards, and messages in public places. The second one is a close contact strategy, meaning a job search through close relatives and friends, applying directly to an employer, surfing special websites. A third passive strategy implies job search through the Governmental Employment Service and at a job fair. Only 52% of respondents who have visited the Governmental Employment Service got any vacancy for their consideration. Only in 21% of cases offered vacancies were adequate to respondents qualifications; in 37% of cases a lower qualification was needed. In 66% of cases vacancies offered by the Governmental Employment Service were below the level of expected income, and only in 13% cases they fitted the latter. Professional development courses and programs helping small business offered by the Governmental Employment Service are not very popular with respondents. The majority of respondents (50%) describe their life as hard; nevertheless they agree that they manage to overcome difficulties. 41% of respondents do not think that their life is normal ; they call it surviving. The way how respondents rate their life does not depend on their age, sex, education, employment or region where they live. Participants of the research see their future quite optimistically; 54% believe that the financial situation of their family will improve or significantly improve in a year. The majority of respondents are positive that corrupted politicians (31%) and executive authority (21%) are the main obstacles in the path of development of the country. War and political instability are in the third place of the list of obstacles to the effective development of the country. Decent job and housing are among the least satisfied needs of respondents, 70% and 59% respectively. Respondents put valuable leisure and recreation in the third place. 4

Research methodology Research has been conducted by method of combined phone interviewing and online survey from February 9 to 28. Parent population: 3127 clients who visited Public Organization The Center for Employment of Free People in 2015. Sample: 450 respondents. Sampling method: random non-repetitive. Sampling bias (with probability 0,95) not higher than 4,3% for indices close to 50%; 3,7% for indices close to 25%; 2,6% for indices close to 10%; 1,9% for indices close to 5%. Division into macroregions: West: Volyn, Rivne, Lviv, Ivano-Frankivsk, Ternopil, Khmelnitsky, Zakarpattya and Chernivtsi oblast; Center: Zhytomyr, Vinnytsya, Kirovohrad (Kropivnytsky), Cherkasy, Poltava, Sumy, Chernihiv, Kyiv oblast, and City of Kyiv; South: Dnipropetrovsk (Dnipro), Odesa, Mykolayiv, Kherson, Zaporizhzhya oblast; East: Kharkiv, Donetsk, and Luhansk oblast. Unemployment rate. We regarded respondents to be unemployed if at the moment of the research they did not have a temporal or stable job, were searching for a job and were ready to start it immediately. 5

Unemployment rate among chosen groups of respondents in % Employment and unemployment The unemployment rate among clients who participated in the research is 21%. The unemployment rate among women is somewhat higher than among man (22.6% vs 19.6%). Unemployment among youth (18-30 y/o) is higher than in other age groups (31-40 and 41-50 y/o): 24.7%, 20.0% and 18.0% respectively. The unemployment rate among single clients is higher than among married: 26.9% vs 19.2%. Unemployment among clients with higher education is significantly lower (19.5%) than among clients with secondary (high school) or secondary professional education (25.3%). Unemployment rate among chosen groups of respondents in % The unemployment rate among single clients of The Center for Employment of Free People is significantly higher than among married: 26.9% vs 19.2%. 6

Among those research participants who had an experience of job search before their Unemployment rate and salary expectations in % displacement the unemployment rate is lower in comparison to those for whom job search was a new life experience after their displacement: 19.0% vs 21.9%. Unemployment rate significantly varies depending on the level of expected salary: almost 37% among the low-paid and 14% among high-paid respondents. The unemployment rate among respondents who live in Kyiv and oblast centers is lower than among the inhabitants of other towns: 18.2% vs 25.8%. The unemployment rate varies greatly from one macroeconomic region to another: in Central Ukraine it is 15.9%, in Eastern 19.3%, and in Southern 33.8%. Among unemployed respondents as well as throughout Ukraine a long-term unemployment is widespread. 53% of respondents cannot find job for more than a year, 17% for more than six months. Unemployment rate among chosen groups of respondents in 7

Employment of respondents 32% of respondents work permanently full time, while 28% work occasionally. Type of respondents employment, % of the total number Only 17% participants of the survey who are employed full-time work at the current position for more than a year, while 35% six to twelve months. The highest level of the full-time employment can be noticed among respondents who are employed in banking (86%) and industry (60%). Irregular employment is typical for the workers of mass media, publishing houses and printing trade (100% respondents in this profession), law (68%) and transportation (50%). 40.7% of respondents who used to work as qualified specialists work full-time now. The situation is similar to the survey participants who were heads of the units and departments of organizations (37% of them work full-time). Duration of respondents employment, % of the type of employment 8

Situation of respondents who used to work in low-skilled positions is quite the opposite: 71% of them do not work at all. Former IT specialists, people who were employed in education (science) or industry have the highest chances to find a job after their displacement: every second has found a permanent job in the new place. Every second research participant had to change his or her field after displacement. Furthermore, every second is employed at a lower position after displacement. Only 38% of respondents agree that they are holding a similar position. Type of respondents employment, % of position types Supervisors 55. 6 1 1. 1 33., 3 Qualified specialists 57. 3 9. 3 33., 3 Technical staff 50., 0 12., 5 3 7. 5 Workers 28., 6 7. 1 64. 3 Full workweek Partial workweek Occasional employment Type of unemployment, % of all unemployed respondents 9

JOB SEARCH STRATEGIES Job search strategies Ways of job search, % of all respondents Research participants tend to search job in two main ways: through special web-sites (60% of respondents), and through relatives, friends or acquaintances (60%); the third popular way to search job is applying directly to an employer (21%). Only 12% respondents consider visit to the Governmental Employment Service to be an effective way of job search. The most effective way of job search considering the unemployment rate among respondents is a visit to job search NGOs (the unemployment rate of respondents 19.8%), reading special newspapers and magazines (19.5%), surfing special job search websites (19.0%). The unemployment rate among those respondents who consider the Governmental Employment Service to be an effective way of job search is one of the highest: 28%. The second place in the rating of ineffectiveness take notes in streets, transportation and public places (25%), the third place takes job searching through relatives, friends or acquaintances (24%). Unemployment rate, % according to job search preferences 10

Generally, three strategies of job search can be distinguished. The first traditional one is a job search through specialized printed media, bulletin boards, and messages in public places. The second one is a close contact strategy, meaning job search through close relatives and friends, applying directly to an employer, surfing special web-sites. A third passive strategy implies job search through the Governmental Employment Service and at a job fair. The ways of job search are slightly different depending on respondents age: 41-50 year olds prefer to search job through their social network, while younger persons who are in a 18-30 age group rather do in through the internet or apply directly to employers. Ways of job search, % of the age of respondents 11

EXPERIENCE WITH THE GOVERNMENTAL EMPLOYMENT SERVICE 49% of respondents visited the Governmental Employment Service; 4.1% are going to do it in the nearest future, while 43% have never had an experience of collaboration with the Employment Service. Adequacy of vacancies offered by the Governmental Employment Service to respondent s qualifications, % of respondents who were offered vacancies by GES According to research results only 52% of respondents were offered some vacancies, while 39% of those who visited the Employment Service were not offered any job; 9% visited the Employment Service for some other reasons. Only in 21% of cases vacancies offered were adequate to respondents qualifications; in 37% of cases lower and in 10% higher qualification were needed. In addition, respondents could not identify clearly the level of qualification needed for every third vacancy. In 66% of cases vacancies offered by the Governmental Employment Service were below the expected level of income and only in 13% of cases fitted the latter. Adequacy of vacancies offered by the Governmental Employment Service to the expected level of income, % of respondents who were offered vacancies by GES 12

Only 5.3% of respondents attend professional development courses offered by the Governmental Employment Service, 8.2% are going to attend them, 35% of respondents have heard about them but were not interested. 38.6% of respondents have never heard about the professional development program offered by the Governmental Employment Service. Awareness about professional development program of the Governmental Employment Service, % of all Professional development courses offered by the Governmental Employment Service are the most popular among respondents with complete secondary (high school) education (28% of the corresponding stratum). Respondents with higher education know about professional development courses the most (53% of corresponding stratum) but only 5% attend them, while 38% of respondents are not interested in the Employment Service offer. 3% of respondents take part in programs to help small business offered by the Governmental Employment Service, 9% are going to take part in this program, while 31% have heard about such programs but are not interested. 48% of research participants have never heard about such initiatives of the Governmental Employment Service. Awareness about programs of the Governmental Employment Service to support small business, % of all respondents who 13

SOCIO-PSYCHOLOGICAL CONDITIONS OF RESPONDENTS The majority of respondents (50%) describe their life as hard; nevertheless respondents agree that they manage to overcome difficulties. 41% of respondents do not think that their life is normal ; they call it surviving. Respondents general assessment of their lives, % of the total number There was no significant statistical correlation between the way how respondents characterize their life and their age, sex, education, employment or region where they live. Probably, respondents attitude towards their own life rather depends on person s psychological condition and their personal perception of the world than on any objective factor. Participants of the research see their future quite optimistically; 54% believe that the financial situation of their family will improve or significantly improve in a year. There is a slight dependence between expectations and age of respondents: young Respondents expectations for financial situation of their family in 12 months, % of the total number people (18-30 y/o) and old people (51-60 y/o) expect positive changes more often than middle aged people (31-50 y/o). Predictably, there is a significant dependence between the level of income and expectations about the future. 14

The majority of respondents are positive that corrupted politicians (31% of all respondents) and executive authority (21%) are main obstacles to development of the country. War and political instability are in the third place of the list of obstacles to the effective development of the country, they were named by every tenth respondent. Unfortunately, only 2% of respondents think that inadequate participation of citizens in governing the country hinder its development. There was found certain dependence between factors that in respondents opinion hinder the development of the country and their level of income. For instance, research participants whose monthly income is higher than 5 thousand hryvnas tend more often than low-income respondents to choose a factor of political corruption. Respondents whose income is not higher than 3 thousand hryvnas more often than other groups of respondents name a bureaucratic corruption, political instability and war in Eastern Ukraine as the factors that hinder the effective development of the country. Similar dependence can be found between factors that hinder the development of the country and respondents education. Obstacles to the effective development of the country, % of the total number 35 30 31, 4 25 20 21, 1 15 10 13, 2 10, 8 10, 1 11, 1 5 2, 3 0 Corrupted politicians Corrupted officials Lack of clear and comprehensible War on the territory of Ukraine Political instability in Inadequate participation of citizens in Other 15

In respondents opinion the most important factor that could unite the nation of Ukraine is the efficient economy (according to 53% of respondents). The second place takes social protection of all citizens by the state (40% of respondents). The third place was shared by such factors as protection of human rights, peace and reconciliation between different social groups, and strong power with almost the same number of choices (chosen by every third research participant). Such factors as freedom of speech and private property have little support among the research participants (supported by every tenth respondent). Generally, three sets of respondents values can be identified regarding factors that can unite the nation of Ukraine (they explain 52% of respondents choices). The first set of values is based on such components as the freedom of speech, efficient economy, protection of human rights, and private property. The second set of values includes the strong power, peace and reconciliation between people of different ethnic and religious groups, and social protection of all citizens by the state. The third set of values is formed around one factor: the military aggression of foreign countries. 60 50 40 30 53. 1 Factors that could unite the nation of Ukraine, % of the total number 39., 9 33. 0 32. 9 28. 5 20 15., 2 13., 3 10 8. 1 6. 5 7. 2 0 Efficient economy Social protection Human rights Peace & reconciliation Strong protection between people power between Freedom of speech Global influences Private property Foreign military aggression Other 16

Unfortunately, we noticed some sort of duality in answers of respondents. Although 40% of research participants consider social protection of all citizens by the state to be an important factor unifying the Ukrainian nation 95% of respondents believe that relations between the government and citizens should be independent. The government according to respondents is not supposed to interfere in life of people, and people, in turn, in governmental activities. Only 5% of research participants believe that relations between the government and citizens are supposed to be friendly, while the main task of a government is to create and ensure conditions for free functioning of citizens. There was no significant statistical dependence between respondents attitude towards the government and their age, sex, education, employment or region where they live. Relations between the country and its citizens, % of the total number 17

Decent job and housing are still the least satisfied needs of respondents. From a wide range of socio-economic and psychological needs 70% and 59% of respondents have chosen these two respectively. Respondents put valuable leisure and recreation in the third place. Respondents answers to the question What don t you have in life?, % of the total number Every fifth respondent lacks trusting other people and communication with others; they lack confidence in protection of their rights and new professional skills. Generally, three sets of the least satisfied needs of respondents can be identified. The first set includes such variables as confidence in one s own abilities, ability to live under new conditions, determination in protection of one s rights, initiative and independence. The second set of needs includes affording most necessary food, affording most necessary cloths, affording good housing, and valuable leisure time. The third set of needs includes trusting other people and communication with others. 18

In respondents opinion the majority of people are afraid of unemployment and escalation of military conflict at the moment. 70% of research participants have chosen these two aspects. 60% of those who took part in the survey believe that people are afraid of rapidly rising prices, while for 50% it is nonpayment of salaries and pensions. Every fifth respondent believes that people are concerned with grow of criminality, loss of state independence and mass street riots. Every tenth research participant is positive that people are afraid of possible swerving of democracy and freedom of speech. Based on research results two sets of fears spread among the Ukrainians according to respondents can be distinguished. The first set of fears consists of fear of being fired, fear of rapid price rise, nonpayment of salary or some sort of obligatory social help, and fear of witnessing the outbreak of military conflict. The second set is based on loss of state independence and swerving of democratic rights and freedoms. Respondents answers to the question What don t you have in life?, % of the total number 19

Assessing dynamics of chosen factors for the next 12 months, % of the total number Economic situation in the country 59. 9 26, 1 14, 0 Living standard of people Level of corruption Level of crime Ukraine-Russia relations Ukraine-EU relations 24, 9 40. 6 49, 5 68, 1 62. 9 50, 8 41. 6 35. 3 Will deteriorate Won t change Will improve 19. 8 31, 7 12, 1 18, 3 24, 9 14, 7 Assessing dynamics of chosen factors for the last 12 months, % of the total number Economic situation in the country Living standard of people Level of corruption Level of crime Ukraine-Russia relations Взаємовідносини України та ЄС 22., 1 55., 7 70., 0 90., 2 94., 5 93. 7 55., 8 36. 4 25. 4 21., 6 8. 5 7, 9 6. 3 Deteriorated Has not changed Imrpoved Assessing the developments of 12 months preceding the research respondents have noted some improvement of in Ukraine-EU relations: 77% survey participants think that situation in this field of foreign policy has not changed or has improved. Situation in other fields suggested by the research authors for the assessment according to respondents has deteriorated. For instance 9 out of 10 research participants believe that the level of life of people, economic situation and Ukraine-EU relations became worse. 68% of respondents do not expect any improvement of life of people in the nearest 12 months. The majority of research participants rather do not expect any positive changes in economic situation of the country, level of criminality or relations with Russia. According to the majority of the research participants we should not expect any changes in the level of corruption or relations with the EU. 20

SOCIO-DEMOGRAPHIC INDICES OF RESPONDENTS Age and sex distribution of respondents, % of the total number 45% of research participants were women, and 55% - men. 62% of respondents were people in their 40s. The biggest sex-age group of participants were men 31-40 y/o, The second group is made up of women of the same age. 56% of respondents are married, 26% were never married, 7% live in a common-law marriage, and 8% are divorced. Marital status distribution of respondents, % of the total number 60% of research participants younger than 30 are not married, 30% are married. 20% of 31-40 y/o research participants are single, while 64% are married. The biggest percentage of divorced respondents fall under the age range of 41-50: 13% of the relevant stratum. The percentage of respondents who are married (registered or not) is lower among women than men (56% vs 68%). Respectively, the level of divorces among female respondents is higher than among male respondents (11% vs 5%). 21

Education level of respondents, % of the total number 80% of respondents have received higher education before their displacement, 11% secondary (high school) professional; while 6% of respondents have never completed their studies, in some cases probably due to the forced displacement. Every third respondent lives with two other family members. An average size of their household is 2.8 persons. 43% of respondents have children under 16 y/o In 63% of cases respondents have only one child under 16, while in 30% cases - two. The majority of research participants live in Kyiv and Kyiv oblast (18% and 25% respectively), Dnipro (16%), Donetsk (14%), and Kharkiv (5%) oblasts. 60% of respondents live in Kyiv or other oblast centers of their region; generally, 87% of respondents live in towns with population higher than 50 thousand. Place of respondent s residence, % of the total number 0 5 10 15 20 25 Kyiv oblast 24. 2 Kyiv City Dnipro oblast Donetsk oblast 13. 8 17., 5 16. 4 Kharkiv oblast 5. 2 Zaporizhya oblast 5. 0 Territories not controlled by Ukrainian government Other territories 1, 5 21., 4 22

62% of research participants used to live in Donetsk oblast before their displacement, 32% in Luhansk oblast, 3% in the Autonomous Republic of Crimea, 4% in other regions. Duration of stay in a current region, % of the total number 65% of respondents have moved to the current place of residence more than a year ago. 76% of respondents do not plan to leave the current place of residence in the nearest six months; 12% research participants plan to move to another region of Ukraine (most often to a neighboring region). 7% of respondents plan to move to a different country (in 60% cases one of the countries of the European Union). Statistical correlation between plans to move and duration of stay in a current Plans to move in the next 6 months, % o the total number region was not found. 23

RESEARCH DISCRIPTION The Center for Employment of Free People was established in February of 2014. Our team gathered together to help the Maydan activists with job search and return to the peaceful life. After dramatic developments in Crimea and Donbas we realized that there are much more people who need help with social adaptation and employment. A military conflict triggered displacement of a huge number of people, according to experts the biggest since the Second World War. According to different estimates one to three million people had to leave their houses, their usual lifestyle and work. Most of them were left to their own with their problems, with no food, housing, and job at a new place. Civil society has shown itself to be really effective helping IDPs with many problems. Volunteers, initiative groups of citizens and NGOs provided IDPs with food, cloths, housing, and of course helped them with a job search. The latter was one of the hardest challenges: in the first quarter of 2015 unemployment in Ukraine reached 10% of the economically active population (according the International Labor Organization methodology). The Center for Employment of Free People has also become active in development of the new society and country. Our aim is to create an effective mechanism, a social institute that would take an effective fight against unemployment to a new level and allow making a full use of a domestic labor potential. At the certain stage of our NGO s development we realized that we lack critically data for quality decision making. Results of external research open to the public hardly touch on issues of work and unemployment of IDPs. A wide spectrum of socio-economic problems did not allow us to develop specific programs for employment and training of our clients. That is why we decided to conduct a sample research of clients who visited the Center for Employment of Free People in 2015 (subject matter of research) to describe and analyze socio-demographic, professional and labor aspects of IDPs (scope of research). We aimed to identify socio-demographic indices of our clients (such as their sex, age, education, family status etc.) and to find out professional and labor parameters of IDP (education, professional experience, duration and type of unemployment, job search experience etc.) We also wanted to learn about clients experience of cooperation with our organization, our partners and the Governmental Employment Service. In addition, we wanted to assess clients chances for employment based on their field of work and their position before the displacement, job search experience, level of education etc. We hope that received results will be beneficial to our colleagues from the civil society who work to make IDPs life easier integrating them into the local communities. 24

We are thankful to our partners from the Ukraine Confidence Building Initiative (UCBI) funded by the United States Agency for International Development (USAID) for making this research possible. 25

Serhiy Shenderovsky, Analytical coordinator of the PO Center for Employment of Free People shenderovskiy@gmail.com 26