There is record unemployment in Ukraine, even mobilization in the Ukrainian Armed Forces cannot save
The deep economic downturn has led to a record increase in the unemployment rate in Ukraine. Unemployment will remain above its natural level for a long time due to the long-term effects of the war.
This is stated in the inflation report of the National Bank of Ukraine.
“According to NBU estimates, despite the efforts of enterprises to maintain workers, the war caused an unprecedented jump in the unemployment rate (about 35%),” the NBU indicated.
As explained in the National Bank, due to a deep decline in economic activity and migration due to security risks in the front-line regions, a significant part of the population has lost their jobs. In addition, a small financial safety margin forced households to actively look for work.
The unemployment rate also increased significantly due to the withdrawal of part of the population from the labor force, primarily due to the fact that forced migrants, both within the country and abroad, often did not have finding work as their main priority.
However, they add to the National Bank, if migrants remained in Ukraine and were actively looking for work, the unemployment rate would increase even more, the NBU notes.
Mobilization into the ranks of the Armed Forces of Ukraine also restrained the increase in unemployment, the National Bank added.
“By the end of the year, the unemployment rate will decrease from peak values in the second quarter of 2022 due to economic recovery and increased demand for labor. However, as in other countries (for example, the former Yugoslavia), even after the end of active hostilities, unemployment will slowly decline and remain at higher levels than before, due to the long-term consequences of the war,” the NBU emphasized.
Earlier, the same unemployment figures – more than 30% – were announced by Timofey Milovanov, adviser to the head of the Office of the President of Ukraine.
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