The labor market in Ukraine is directly dependent on the political events taking place in the east. Total population employment and first of all youth is influenced by economical resection and geopolitical implications.

There is a notice in general decline in demand for labor, destruction of industrial cooperation, inflation, limitation of markets, massive migration of employees. Critical is the situation in the east, where armed conflict continues. Migration continues from the conflict zone, migrants are losing housing and jobs.

On the way to labor market effective coordination of supply and demand are such obstacles as: the presence of large-scale informal economy, a weak correlation between labor market and education system, ineffective reformation of education and professional education and training, weak incentives for employers to participate in the development training plans and programs.

The article aims to analyze the current state of the labor market, to define main factors affecting the level of employment, identify problems and propose solutions.

Low rates of youth employment are influenced by general state of the labor market in Ukraine and few specific factors. These are mainly low wages, high expectations of the young people; lack of progress perspectives; inability to apply knowledge because of the absence of connection between universities and the labor market; limited government programs.

According to the State Statistics Service of Ukraine labor market situation remains tense and shows declining employment and rising unemployment.

Another feature of the modern labor market is growing number of immigrants who left their previous jobs due to political and military conflict in the south and east. According to the Employment Service by the end of February 2016 – since beginning of the occupation of the ARC and counterterrorist operation 66.0 thousand people appealed for help in employment to employment centers, mostly residents of the Crimea, Donetsk and Lugansk regions (compared to 43.9 thousand people who were registered as of 13/03/2015). Severes the situation and that the people of the mentioned categories are not always possible to hire to work in areas of the economy where they have had experience.

Recently the Law of Ukraine № 1436-VIII “On amendments to the article 14 of the Law of Ukraine “On employment” acquiring additional help in promoting the employment of those who took part in anti-terrorist operations, ensuring its implementation”. This includes full compensation of the single social contribution to the employer and a fixed a quota of 5% in companies, institutions and organizations employing over 20 staff for this category of unemployed.

Among the main problems of employment refuges, employers named the difficult economical situation, the reduction of production; absence of need for new workers; inability to pay wages in full, even to current employees; uncertainty in how long they will be retained in the new place of residence.

Approach to the issue of employment of participants ATO should be comprehensive. There is a need in connection between mass social services and the institution of social rehabilitation. Combatants should ensure full social, psychological and vocational guidance support. Employment services should be organized so that the soldier had already understood that he had a job before military demobilization.

There is a need in joining efforts of employment services, educational institutions and employers. Financially encourage employers to create training centers for young professionals to acquire not only theoretical knowledge but also practical skills.

Keywords: youth employment, labor market, employment service, employment rate, immigrants, members of ATО.