This document discusses rural-urban migration trends in Ukraine. It notes that Ukraine's rural population declined from 53% in 1960 to 32% in 2010 as more people moved to urban areas. Agriculture's contribution to Ukraine's GDP and the percentage of the labor force in agriculture have both declined significantly. Rural incomes in Ukraine have risen as well, with the proportion of income spent on food declining from 74% in 1999 to 60% in 2005. Rural-urban migration is often temporary and rational, seeking higher wages, and helps link rural and urban economic development through increased demand and job creation in both areas.

1. Rural-urban migration and the movement
of labour out of agriculture
Threat or opportunity?
Nick Maddock
UNDP Regional Centre for Europe and the CIS

2. Ukraine population
1960: 53% rural
2010: 32% rural

3. Agricultural labour force as % of Agriculture’s % contribution to
total labour force GDP
Ukraine 16 8
Poland 17 4
Lithuania 14 4
Hungary 5 4
Slovakia 3 4
Canada 2 2
UK 1 1
Netherlands 1 2

4. Rising rural incomes in Ukraine
Proportion of rural income spent on food:
Ukraine
1999: 74%
2005: 60%

5. Rural-urban labour flows
• Usually first move is to secondary town or city: not to the capital
• Movement in response to available job or strong expectation of a job (first
move to friends or relatives)
• Rational (i.e. in receipt or expectation of higher wage rates)
• Daily commuting common
• Temporary or temporal relocation more common than permanent
relocation of the entire family

6. Dynamic effects: linked rural-urban
development
Increased demand from urban Rural households earn higher Increases demand for consumer
areas incomes from production of goods from rural areas (from
household goods higher earnings and remittances)
Creation of non-farm jobs
employment diversification
(especially in small towns close to agricultural production areas)
Absorbs rural surplus labour raises demand for agricultural boosts agricultural productivity
produce and rural incomes