Ukraine's accelerating economic crisis is pushing many employers to lay off some of their staff. And for the newly unemployed, finding new work won't be easy.
The latest official data reveals a 9.9-percent unemployment rate as of the end of the third quarter in 2014, while Oleksandr Zholud, an economic analyst at Kyiv-based International Center for Policy Studies, expects the official unemployment rate to climb to 10 percent this year, which is a 12-year high.
The number of vacancies, meanwhile, fell by 10,200 — or 22.4 percent — in December, according to the State Employment Service. And the competition for those shrinking vacancies is fierce.
“A single vacant position attracts 30-35 candidates today,” says Social Policy Minister Pavlo Rozenko.
However, he adds: “I wouldn’t paint it all gray – forecasts on Ukraine’s grim future are groundless and are based on a criticism from opponents and those who are not interested in wide-scale reforms. Many will lose their jobs and salaries, but we don’t have any other way. Otherwise, we will lose our country.”
Rozenko says the government will try to help those who suffer the most.
Meanwhile, Zholud of the International Center for Policy Studies says many won’t be laid off, but pushed to take unpaid vacations until the economy improves.
“This year, almost all sectors of economy will experience layoffs, at a larger or smaller scale,” he emphasizes. Zholud also expects a drop in salaries.
Officially, the average salary stood at Hr 4,290 as of December, or some $225 – up by 1.6 percent month-on-month. Some of the businesses pay their employees unofficially, distributing untaxed cash, which is why there are reasons to believe the unofficial figure could be higher.
A quick look at work.ua, a job search service, shows electricians shouldn’t have a hard time finding work for Hr 10,000. Meanwhile, public companies offer Hr 1,550 for the same job. Accountants are offering Hr 5,000-8,000, while English teachers can make Hr 6,000-11,000.
Sergiy Ivanchura, an unemployed 62-year-old Kyivan, has been trying to find a job for many months. He is of retirement age, but a Hr 1,000 state pension — now $40 — doesn’t cover his needs. That’s the reason he is still on the job market.
“It’s very complicated for an old person to find a job, everyone wants young workers,” he says. “But I believe there are still some jobs available for people like me who worked all their life.”
The social support standards have been kept unchanged for two years, explains Rozenko, the social policy minister. “Right now, we’re looking for an opportunity to raise them.”
To increase the minimum wage at least by $1 a month, the state budget needs billions of more hryvnias, which it doesn’t have.
