Unemployment rate in Ukraine will reach 30% this year, the real salaries will decrease by a quarter – the NBU
Despite this, the situation on the labor market has stabilised, the regulatory authority assures
What happened? The unemployment rate will reach 30% by the end of this year.
Source. The inflation report of the National Bank of Ukraine (NBU).
Details. “The unemployment rate will reach almost 30% this year. The recovery of the economy in the coming years will contribute to revival of the demand for labor and reduction of the unemployment rate. However, it will remain higher than its usual level due to economic losses and deepening of disparities due to the war,” the message reads.
At the same time, nominal salaries will be reduced by 12–13% this year, and in real terms (adjusted for inflation) by a quarter. This is a consequence of a deterioration of financial stability of enterprises and significant competition among job applicants, the NBU explains.
The report assures, however, that the situation on the labor market has stabilised, but “remains difficult”. “The number of job applications per vacancy has decreased, but is still significantly higher than last year's figures,” the regulatory authority adds.
The National Bank of Ukraine states that due to the continued shortage of skilled labor in certain sectors and significant disparities in the labor market, nominal wages in 2023 “will increase by almost a third and exceed the pre-war level, and in 2024 – by another 28%.” Nevertheless, the increase in salaries in real terms will be “rather slow, given the high inflation rate and productivity, which is lower than pre-war one,” the NBU emphasised.
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