ILO and Switzerland Launch New Programme for Ukraine’s SMEs

The International Labour Organization (ILO) and Switzerland have launched a new five-year initiative designed to strengthen productivity, improve working conditions and support the recovery of small and medium-sized enterprises (SMEs) across Ukraine.

Known as Productivity Ecosystems for Decent Work, the programme forms part of Switzerland's broader Competitiveness for Recovery Ukraine 2026–2030 Programme, which focuses on supporting the country's economic transformation during reconstruction and recovery.

Funded by Switzerland through the Swiss State Secretariat for Economic Affairs (SECO), the wider programme is being implemented by the Helvetas–NIRAS consortium, with the ILO leading the labour market and productivity component.

The initiative aims to help businesses remain competitive while creating better employment opportunities and improving workplace conditions in a country still facing significant economic disruptions caused by the war.

Focus on Skills, Safety and Workplace Cooperation

The ILO's Productivity Ecosystems for Decent Work approach has already been applied successfully in several countries and industries, including manufacturing, agro-processing, automotive production, furniture making and machinery sectors.

In Ukraine, the project will support stronger sector policies, workforce training, reskilling programmes and improvements in occupational safety and health standards. It will also encourage closer cooperation between government agencies, employers' organisations and trade unions.

Labour shortages and workforce pressures have become major challenges for Ukrainian businesses, making productivity gains increasingly important. The programme seeks to help companies improve efficiency without increasing workloads for employees, while also promoting fair and decent working conditions.

The ILO believes that stronger labour protections, workplace dialogue and skills development can play a direct role in increasing productivity and business performance.

Supporting Recovery Through Inclusive Growth

A key element of the initiative is expanding opportunities for groups that often face barriers to employment, including women and military veterans. The programme aims to ensure economic recovery efforts create benefits that are broadly shared across society.

Aida Lindmeier, Director of the ILO Country Office for Ukraine, said productivity should be viewed as more than investment and technology alone. She noted that skills development, social dialogue and decent work are equally important foundations for building stronger businesses and a more resilient economy.

Through its tripartite model involving government, employers and workers, the project is expected to help create a more competitive business environment while supporting Ukraine's wider recovery, reconstruction and European integration ambitions.

The initiative reflects the long-standing cooperation between the ILO and Switzerland and their shared commitment to promoting productive enterprises, quality employment and sustainable economic growth as Ukraine continues rebuilding its economy.