Abstract
<jats:p>This article focuses on conceptualising economic instruments for reintegrating combatants into the labour market, and justifies the need for their institutional systematisation. The study's relevance is determined by the need to ensure sustainable socio-economic development and the effective exploitation of veterans' human capital. The work aims to determine the structural and hierarchical position of economic instruments within the reintegration mechanism, and to formulate proposals to increase their synergistic effectiveness. The mechanism for reintegrating combatants has been identified as a system of interconnected methods, principles and management tools that focus on ensuring decent employment and promoting veterans' self-realisation in entrepreneurship. The mechanism's strategic imperative is to reconcile the socio-economic interests of the state with the personal interests of combatants in employment. The dual focus of economic instruments has been substantiated: supporting hired personnel and stimulating entrepreneurial activity. Two key categories of economic instrument have been identified. 1. Instruments for investing in human capital, such as short-term, free-of-charge vocational training through the State Employment Service, and support for degree and certification programmes at higher education institutions. 2. Tools to stimulate employers and veteran businesses: compensation payments to employers for hiring veterans; compensation for adapting workplaces for people with disabilities; grant support for businesses; targeted financing; tax preferences for veteran sole proprietors. The key competitive advantages of combatants have been established as leadership, crisis management and technological competencies, creating high potential for employment in IT, cybersecurity and logistics. To form an inclusive employment culture, it is necessary to synchronise economic instruments with organisational measures (recruiting, job fairs) and legal support. It has been determined that overcoming the current low level of veteran entrepreneurship requires the implementation of start-up capital instruments and entrepreneurial skill training. The practical implication is the recommendation to institutionalise social veteran businesses by adopting a specialised regulatory act that would define their specifics and support mechanisms. The effectiveness of reintegration depends on tools for developing competencies and motivating the business environment functioning in parallel and in a coordinated manner.</jats:p>