Abstract
The purpose of this research is to conduct an in-depth analysis of the monetary policy influence during the period of martial law on the state of the labor market and welfare of the population in Ukraine. The article examines the effects of military actions on the workforce, employment sectors, and briefly outlines the key actions taken by the National Bank of Ukraine (NBU) to stabilize the macroeconomic situation in the country, mitigate inflationary pressure, and counter capital outflows.Based on available statistical data and expert assessments of the labor market in Ukraine following the full-scale invasion, the effectiveness of monetary mechanisms, including the temporary shift from inflation targeting to exchange rate fixing, was analyzed. The conducted analysis confirmed that despite timely adaptive changes in monetary policy by the regulator, the effectiveness of the monetary transmission mechanism during wartime remains low. The decline in real production, reduced confidence in the national currency, and the initiation of government spending financed through monetary emission resulted in an excess liquidity situation in the economy, leading to diminished effectiveness of the monetary transmission mechanism. As a result, controlling inflation levels and inflation expectations during the period of martial law cannot be fully ensured by the National Bank of Ukraine.Moreover, the analysis of forced emigration dynamics during the Russian invasion also revealed that high uncertainty levels deter refugees from returning to Ukraine and incentivize them to spend earned income in host countries. Despite the unprecedented wave of emigration, the increase in private remittances from abroad remains marginal. Thus, a priority task for the government should be to develop strategies of financial and social incentives to encourage the return of the working population and facilitate Ukraine’s post-war reconstruction.
 JEL classіfіcatіon: E58, F24, G28, J21
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