Ukrainians’ purchasing capability has dropped by 25%

In two years the purchasing capability of Ukraine’s working population has dropped by 25,4%. Ella Libanova, academician of the National Academy of Sciences of Ukraine, the President of the M.V. Ptukha Institute of Demographics and Social Studies of the National Academy of Sciences, informed thereof.

Amongst reasons, Libanova first and foremost cited a rapid increase in rates on housing and transportation services. “ The depreciation of national currency also played its part, at least when it comes to import. The fact that the price increase is quite often unfounded does not change things much in this regard ”, Libanova noted.

She emphasized that “ at the present moment, Ukrainian salaries still leave much to be desired. The salary level remains dangerously low: in 2015, average salary in the country constituted 4195 Hryvna, with a slight increase in December – up to 5230 Hryvna. But still there are air transport workers with their salaries of 18470 Hryvna, and industry workers with 4789 Hryvna salaries, and healthcare workers with 2853 Hryvna ”.

According to the academician, “ 29,3% of workers, which is 2,2 million people, that were paid for over 50% of fixed working hours in December – received less than 2500 Hryvna for December (including 69,8% of those working in postal and delivery services). This sum approximately equals the living wage, and we are not talking the wage determined legislatively: we mean the wage calculated by the specialists of the Ministry of Social Policy).

Thus, the salary of 2,2 million workers, whose employers had covered their payment for over 50% of fixed working hours in December 2015, was lower than a living wage, which already raises enough concerns in terms of its composition and measure as it is ”.

In order to assess the full picture, one should also add to this number those employees, whose employers owe them a total of 1,8 billion Hryvna ”, Libanova underscored.

 

Source: 2000

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