In Ukraine, starting from October 1, unemployment benefits may increase

In Ukraine, starting from October 1, unemployment benefits may increase

The minimum unemployment assistance in Ukraine is planned to be increased to 3,000 UAH from October 1, 2024, for those who have insurance experience, as well as for internally displaced persons. For those without experience, the amount of payments will remain at the level of 1500 UAH.

This is stated in the decree of September 19, 2024 № 74 "On the minimum amount of unemployment assistance." This decision was made by the State Employment Center, and it will come into force after registration with the Ministry of Justice.

According to the draft decree, the minimum amount of unemployment assistance will increase from 2,500 UAH to 3,000 UAH. However, this increase will be available only to those who have at least seven months of insurance experience in the last 12 months or for internally displaced persons (IDPs) who are registered in employment centers.

For persons without the necessary insurance experience, the minimum unemployment assistance will remain at the level of 1,500 UAH. This applies to those who cannot document their income or were not officially employed before registering as unemployed.

Changes in unemployment benefits have become especially relevant in wartime conditions. An important factor is that the duration of payments cannot exceed 90 calendar days for the majority of the unemployed, which was approved during the period of martial law. This decision was introduced to stimulate a quicker job search and activation of economic activity among citizens. At the same time, some categories may have the right to extend payments under special circumstances.

Despite the gradual restoration of economic activity in the country, the unemployment rate remains high. According to the State Employment Service, the number of officially registered unemployed in Ukraine halved in 2023 to 96.1 thousand people, which can be explained by the partial restoration of jobs and changes in the structure of population employment. However, the real number of unemployed, according to experts, is significantly higher.

As of August 2024, Ukraine registered 104.7 thousand unemployed persons, of which 80.6 thousand were women. At that time, 55.9 thousand people were receiving unemployment assistance. It is worth noting that the actual number of unemployed may be higher due to informal employment and difficulties in registration for some categories of the population.

Despite the current economic instability, the government of Ukraine forecasts a gradual reduction in the unemployment rate in 2025. With the improvement of economic activity, the adaptation of producers to new conditions, and the increase in jobs, the unemployment rate is expected to decrease to 17.7%. This means that around 2 million people in the country will be seeking work.