Due to the increase in the minimum wage without work can remain 630 thousand people.

For 2017 630 thousand Ukrainians could lose their jobs. All for raising the minimum wage twice since January 1 – up to 3,2 thousand UAH.

This forecast gives the national Bank of Ukraine in its inflation report for January.

Among the reasons for layoffs – increased costs of labor that will especially hit small and medium businesses. Also in force a new penalty for paying salaries “in envelope” – now he is 100 minimum wages, i.e. UAH 320 thousand.

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“The total number of employees in the formal sector of the economy in 2017 will be reduced by 9% compared with the year 2016. The contribution of reduction by raising the minimum wage will amount to 5.4% (or about 630 thousand people)”, – the report says.

NBU predicts the largest reductions in the small business actively will be closed for sole traders, who now have to pay twice the highest single sotsvznosa.

“However, in part this decline kompensiruet growth of informal employment. In addition, the increase in the average level of wages in the economy can stimulate return to the labour market of those desperate persons who will begin the job search, and, as a consequence, the unemployment rate may further increase. In General, according to NBU estimates, employment will be reduced by 5% compared with the year 2016, which corresponds to a 10 percent unemployment on methodology of the International labour organization”, – noted in the national Bank.

Earlier , the NBU stated that raising the minimum wage will increase inflation rate in 2017 by 1% to 9.1%.

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