According to the National Bank of Ukraine, almost no new vacancies are appearing on the labor market. At the same time, employers are focusing on retaining existing jobs.
The deputy head of the National Bank Kateryna Rozhkova announced this in her video message.
This reflects the unemployment statistics reported by the Ukrainian Chamber of Commerce and Industry. Up to 1,300,000 Ukrainians have lost their jobs in the last four weeks of the coronavirus-induced quarantine. This takes the total number of jobless on the Ukrainian market to around 2.5-2.8 million or 13.7-15.4% of the labor force, which is the highest in 15 years, according to the head of the Chamber, Gennadiy Chyzhykov.
“Unfortunately, the number of new vacancies has vanished, it is almost non-existent. Despite the fact that entrepreneurs and business owners are trying to keep jobs and not lay off workers, a very large number of people have unfortunately temporarily lost their income,” Rozhkova said.
She noted that in order to help the business, the central bank has introduced credit breaks and took steps not to worsen the terms of business loans.
Negative projections for the further development of the world and Ukrainian economies affect the reduction of labor demand, according to the National Bank. Under such circumstances, the business expects to reduce profits and, accordingly, does not recruit new workers or makes existing employees redundant.
The International Monetary Fund recently announced that it expects Ukraine's economy to fall by 7.7% in 2020. In order to reduce unemployment, the government has decided to lend to small businesses at 0% per annum to refinance their loans with banks.