National Bank downgrades unemployment outlook

The National Bank of Ukraine expects that the unemployment rate in 2020 will reach 10%, instead of 9.5% predicted in April.

That's according to the central bank's inflation report for July.

"Weakening of quarantine in May led to the resumption of labor supply, which the weekly CV applications data for June says returned to pre-quarantine level," the report reads.

"Interest in finding a job has resumed not only in the domestic labor market, but also abroad, which was facilitated by the partial reopening of state borders for those seeking employment abroad," the statement said.

Read alsoUkraine's National Bank predicts acceleration of inflation by year's end

For 2021, the NBU forecasts the unemployment rate at 9% (instead of 8.6% noted in the previous forecast), and for 2022 – at 8.8% (against 8.6%).

Timeline

• Since the announcement of the national quarantine to tackle the COVID-19 spread, the number of officially registered unemployed Ukrainians has exceeded 500,000.
• The Cabinet of Ministers announced a program to create 500,000 new jobs.
• As of June 11, 2020, the official number of unemployed individuals exceeded 514,000.
• The National Bank of Ukraine forecast the unemployment peak for the second quarter – up to 11.5%, after which in the second half of the year, the figure was set to decline. For the entire year, the general unemployment rate will be higher than in 2019, while remaining below 10%.
• The Ministry for Development of Economy, Trade, and Agriculture predicted that the unemployment for 2020 would grow to 9.4%.
• As of July 10, 2020, 512,000 jobseekers were registered at employment centers.