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Minimum Wage Increase Is Equal To an Increase In Unemployment

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The increase in unemployment over the past six months has been linked to the implementation of a new minimum wage, CASE Ukraine`s Executive Director Dmytro Boyarchuk said in a comment to the ‘From-UA’ media outlet.

‘In any economy, there are two processes: creation of jobs and its disappearance, the expert comments. Someone turns out to be uncompetitive and completes his job – there is a business, which nobody needs. Someone, on the contrary, finds his/her niche and starts. That is, there are two opposite processes. They usually occur at the same time. Therefore, someone says that ‘I see, on the contrary, that jobs are being created’ (while working in one sector), another says that ‘I see that they are disappearing’. This is normal. The aggregated statistics should show what is going on in the whole’, Boyarchuk adds.

According to the expert, if the economy is growing and developing, the process of creating jobs is much more active and faster than the process of its disappearance, and then the unemployment rate is reduced.

December 22, 2017