“On household resources”, Vasyl Yurchyshyn (Razumkov Centre, Ukraine)

With the beginning of the Russian aggression, Ukraine faced a sharp decrease in employment and an increase in both official and actual unemployment — according to various estimates, 30–40% of workers lost their jobs. As a result, salaries, being the main source of income for most households, also fell significantly.

Moreover, we should not expect a noticeable increase in salaries in the near future. A number of production factors — growth in energy and logistic costs, poor marketing possibilities, including exports — reduces the resources of enterprises, which (under other conditions) could be used to raise wages.

 A decrease in the resources and opportunities of enterprises to raise wages means not only the loss of household welfare. Opportunities for savings, being an important macroeconomic component (forming a potential investment resource), are decreasing, too.

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