Ukraine's unemployment falls to 7.8% in 2Q19, its lowest level in five years

Ukraine's unemployment falls to 7.8% in 2Q19, its lowest level in five years
Ukraine's unemployment fell to 7.8% in 2Q19 - its lowest level in five years
By bne IntelliNews October 29, 2019

Ukraine's unemployment started to fall more noticeably in the second quarter of this year. The unemployment level fell from 9.2% in the first quarter to 7.8% in the second.

Part of the reason for the fall is the improving economy and more job creation, but more negatively the mass emigration of the workforce to Ukraine’s neighbours that simply means there are not enough workers at home is also driving down unemployment at home.

Unemployment is an issue for the new government, which has introduced new investment and liberalised labour laws that are designed to create 1mn legal jobs and to cut the unemployment rate to 5% in the nearest future  in line with Poland, Romania and Moldova.

Due to a combination of economic growth and labour migration, Ukraine’s unemployment, as measured by the State Statistics Service, has fallen from 9.9% in 2017, to 8.8% in 2018, to 7.8% in the second quarter of this year.

According to the Ministry of Social Policy of Ukraine, the number of Ukrainians who are permanently employed abroad is 3.2mn. This is 18% of the total economically active population of the country.

Also, as noted by the Ministry of Finance, high rates of labour migration have led to an increase in wages in Ukraine. Thus, in May 2019, the wage growth rate increased by 7% (compared to May the previous year) due to the fact that Ukrainian employers are forced to compete with those elsewhere in Europe.

 

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