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Raise of minimum wage in 2017 will not lead to growing unemployment, - Chairwoman of National Bank
12:45, 4 February 2017
Raise of minimum wage in 2017 will not lead to growing unemployment, - Chairwoman of National Bank

Hontareva noted that estimates provided in the inflation report were related to the official unemployment data, but not “resignations”

12:45, 4 February 2017

National Bank of Ukraine

The increase in the minimum wage along with introduction of structural reforms in the country will have a positive impact on employment in the long-term perspective. This was reported in a commentary of Valeriya Hontareva, the head of the National Bank of Ukraine, speaking about the influence of minimum wage increase on national employment rate.

Hontareva noted that the estimates provided in the inflation report were related to the official unemployment data, but not “resignations”. According to the National Bank experts, the quoted decrease of formal employment will happen due to closure of private entrepreneurs initiated by the amendments in the tax policy in the first place.

The Chairwoman stressed that the increase in minimum wage will stimulate domestic consumption, herewith, improve economic activity and thus enhance demand for man power and rise employment rate in future.

On top of that, the increase of minimum salary would provide incentives for people, who earlier did not look for a job because of low remuneration.

Related: Groysman: Cabinet to raise minimal salary in Ukraine to USD 125

Related: Groysman discusses minimum wage with IMF mission head

Related: Ukraine doubles the minimum wage: qui bono?

 

 

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