Mass labor migration from Ukraine reached the scale of a national disaster in recent years. It is gaining momentum in the conditions of the failed economic policy of the authorities, who use it to lower the degree of social tension and reduce unemployment rates. Nobody is systematically addressing the problem of labor migration, but the other day a group of MPs registered a bill, with the help of which they hope to resolve a number of problems related to the phenomenon.

However, even if it is accepted, it will not help globally to improve the situation, experts say. According to them, if the solution to labor migration is not considered systematically, the consequences will be serious and irreversible.



MPs recognized guest workers



After a long absence of initiatives and attempts by the authorities to regulate the phenomenon of labor migration from Ukraine, on May 6, a group of MPs from different political forces registered in the Parliament the draft law “On Amendments to Certain Legislative Acts Regarding Overcoming and Preventing the Negative Effects of Mass Labor Migration of Ukrainians abroad.” The document prohibits taking a fee from a potential job seeker for employment abroad. It also assumes the simplification of conditions for the employment of foreigners in Ukraine by abolishing the requirement for the size of their minimum wage. As explained by Vasyl Voskoboinyk, the head of the All-Ukrainian Association of International Employment Companies, this is a discriminatory norm that obliges domestic employers to pay foreigners no less than 10 minimum wages (that is, about 42 000 UAH / 1527 USD per month).

Scale of disaster

According to the World Bank, Ukraine is in the group of leading countries in the dynamics of labor migration, said economist Oleksiy Kushch. According to the conclusions of leading Ukrainian experts in the field of demography and economics, Ukraine today is facing a critical situation in the loss of labor: “This threat was formed as a result of many factors, in particular, the difference in economic development between Ukraine and its neighbors, political instability in the country, the introduction of new migration policies in many EU countries that have simplified the involvement of Ukrainians in the production process in their territory. " The size of both the minimum and the average salary in Ukraine is significantly lower compared to all EU countries, including Eastern Europe. Companies in former East Germany pay an average of 2,700 euros to employees, and 3,300 euros is paid in Western Germany. The minimum wage in Germany is 1600 euros. In Poland, the average salary is 1,150 euros, and the minimum is about 550 euros. In Ukraine, as of January 1, 2019, the minimum wage is UAH 4,170, or about $ 150, and the average salary is around UAH 9 000 (327 USD).

More disadvantages than profits



It should be noted that this phenomenon has much more negative consequences than positive ones, Ustenko notes. When it comes to the benefits of labor migration, its supporters traditionally name two aspects: foreign currencies transfers to Ukraine and 0.5% of GDP growth due to these revenues. In particular, Olexandr Okhrimenko speaks about this: GDP growth in Ukraine in 2018 at 3.4% is largely due to the money of guest workers, who, taking into account the transfer of cash, invested about $ 20 billion in Ukraine’s economy in 2018.

What happens if we leave migration issue as it is



If steps to improve the economic situation inside the country are not taken in the short term, creating conditions for motivating people not to leave Ukraine, the consequences for the state may be the most serious and irreversible, experts warn. "Labor migration forms medium and long-term risks to slow down the economy, not to mention strengthening the fiscal burden on the rest, when those who work in Ukraine must provide pensions for the parents of those who have temporarily left and maintained the country's social infrastructure (medicine, education), and also finance the payment of subsidies and other expenses of the budget, "says Olexiy Kushch.



The growth of the fiscal burden on citizens who have not left the country is a serious problem, Oleg Ustenko agrees: "In particular, the acute question of financing the Pension Fund, which is already experiencing serious problems with filling. And this happens against the background of the deteriorating demographic situation and the aging population."