Unemployment in Ukraine remains at 1.6% in August.

By bne IntelliNews September 16, 2014

In August, the official unemployment rate remained at the level 1.6%, same as in July, the State Statistics Service said. As of Sep 1, 2014 the State Employment Service had registered 426,100 unemployed people. The number of unemployed people, who received state aid in July, was 333,300; the average unemployment benefit was UAH 1,185 per head that month.

The international labor organization states that the real figures are at least three times as high as the official ones. We believe that the main reason behind the understated statistics, is large shadow economy that exists in the country, which in turn leads to salaries being paid in "envelopes". In addition, while firms in the country face a shortage of skilled workers, many university graduates can’t find employment or end up in jobs that do not use their skills due to skills mismatch.

The government forecasts the ILO unemployment level will reach 8.2% in 2014. Labor productivity in Ukraine in 2014 will decrease by 1.7 % y/y, the government believes.

Related Articles

Siemens fumes as worst suspicions on Crimea turbines confirmed

German technology major Siemens said on July 21 it has "credible evidence" that all four gas turbines supplied for a power plant in the south of Russia were locally modified and illegally supplied ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Ukraine injects another €760mn into nationalised PrivatBank

The Ukrainian authorities have issued domestic government bonds in the amount of UAH22.5bn (€759mn) in exchange for the bank’s shares as part of the additional capitalisation of nationalised ... more