Financial Impact of Macroeconomic Indicators on the Unemployment Level in Ukraine

Abstract

Unemployment is an economic phenomenon that is inherent in the economy of each country. The negative aspects of this phenomenon are manifested when the unemployment rate in the country exceeds the natural level, the latter is defined within 3-5%. Exceeding the allowable value causes the loss of potential GDP, which has a negative impact on all financial and economic processes, their development is slower. Since Ukraine's independence, the unemployment rate has always exceeded the norm. The article provides a detailed analysis of the financial impact of macro-level indicators on the unemployment rate in Ukraine during 2010-2021. The dynamics of the unemployment rate is analyzed, a number of factors and events that caused the growth of unemployment in specific periods are identified. The article studies in detail the dynamics of real GDP and the consumer price index, as well as their impact on the level of the studied indicator. The dynamics of the minimum wage was compared with the dynamics of the unemployment rate and their interdependence was analyzed. Since Ukraine is quite a large country and its regions differ significantly in socio- economic development, it is very important for the study to compare the average wage and unemployment in different areas. It was found that the lowest average wage over the past decade is typical for the Ternopil region, and the largest value of this indicator are industrial giants, that is Kyiv and Dnipropetrovsk regions. Unemployment is also affected by the number of businesses, as they create jobs and are able to ensure the development of the economy as a whole. As a result, measures were proposed that can positively affect the level of unemployment in Ukraine, that is reduce it, and contribute to the development of the national economy in the coming periods.