Strengthening currency helps reduce labor migration

Source : 112 Ukraine

Ukrainians send less money from other countries, which means they leave Ukraine less to earn money
16:27, 20 December 2019

Open source

The number of people leaving Ukraine in search of a job significantly decreased in 2019.  This contributes to the strengthening of the hryvnia. Bloomberg reports.

Due to the lack of reliable demographic data, one can judge one’s departure from the country for work by sending money home from abroad.  Throughout 2019, this figure has decreased.

"The appreciation of the hryvnia this year, as well as the rapid increase in nominal wages of Ukrainians over the past few years, is a strong driving force that slows down labor migration," - Oleh Churiy, deputy head of the National Bank of Ukraine, noted.

Related: Nigerian example for Ukraine: How labor migration can become driver of economic growth?

According to the National Bank of Ukraine, the difference between the salary in Ukraine and Poland has decreased.  In 2016, we paid 4.5 times less, today - 2.7.

According to the Ministry of Social Policy, 3.2 million Ukrainians traveled abroad at the end of 2018.  They sent about 11 billion dollars to Ukraine.

Related: New data on Ukrainian labor migration to Poland in 2019

Speaking about these companies providing official employment, we can say that during 2018 they sent 19 thousand people to Cyprus, 12.5 thousand to Poland, 10 thousand to Germany and almost 8 thousand to the UK.

As we reported, Ministry of economic development, trade and agriculture of Ukraine expects the volume of remittances from migrant workers to Ukraine may reach 12 billion dollars this year.

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