In 2022, the unemployment rate in Ukraine increased from 9.8% to 25.8%. This was the result of the destruction of enterprises and a decrease in the economic activity of businesses in the face of high risks and the forced migration of millions of Ukrainians. At the same time, unemployment in Ukraine will remain high in 2023. At the same time, wage cuts by part of the business and high inflation led to a drop in real incomes of Ukrainians.
This was reported to the NBU. They noted that, despite active hostilities, at the end of 2022, the labor market began to recover, but this process was slowed down by large-scale attacks by the Russian Federation on the energy infrastructure of Ukraine.
Unemployment will remain high
However, the regulator noted that in 2023, unemployment in Ukraine will remain high. In addition, the number of applicants will exceed the number of vacancies.
However, it is noted that “business will try to retain the existing staff.” They will do this, according to forecasts, by raising salaries.
When the unemployment rate starts to fall
According to the forecasts of the National Bank, the situation on the labor market will improve when two factors come into play. They are:
- reducing security risks;
- economic recovery.
“The recovery of Ukraine will require attracting more workers. Therefore, the NBU expects that from 2024 the unemployment rate will begin to decline, and the growth of real incomes of Ukrainians will accelerate,” the regulator noted.
In addition, they emphasized that the incomes of the population will also increase due to the maintenance of a high level of budget support, in particular, social spending. “True, the consequences of the war will still be acutely felt in the labor market, in particular due to the strengthening of qualification and regional disparities,” the NBU acknowledged.
As GLOBAL HAPPENINGS reported, according to Opendatabot, in February 2023, there were more open vacancies in Ukraine than resumes. In addition, compared with January, the number of vacancies increased by 11%. More often, Ukrainians aged 16-24 are looking for work – there are almost twice as many of them as applicants in the age category 25-35.
Source: Obozrevatel
I am a journalist who writes about economics and business. I have worked in the news industry for over 5 years, most recently as an author at Global Happenings. My work has focused on covering the economy news, and I have written extensively on topics such as unemployment rates, housing prices, and the financial crisis. I am also an avid reader and have been known to write about books that interest me.
