Ukraine: the social sectors during transition by World Bank
By World Bank
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It ranks in the group of developed countries, being the 45th in the GNP per capita in the world. However, these impressive social indicators come at great cost, almost 45 percent of GNP is spent on social programs. It is obvious that the state is unable to maintain such expenses, especially considering the current economic situation. So the great value and importance of the recommendations given in this report stem from recommendations on how to make the social sector institutions more efficient under conditions of reduced budget allocations.
8 percent of GDP in 1992, excluding the three-month severance pay that enterprises must give to redundant workers. When unemployment eventually rises, more resources will be needed. General revenues may therefore be needed for employment services, if higher payroll tax is to be avoided. 15. The illusion of full employment is beginning to disappear. A survey by the Ministry of Labor's ES asked 333 firms that employ nearly half a million people how many workers were on unpaid leave. 80). Today's hidden unemployment would become open if enterprises lose access to credit and their managers sense an irreversible collapse of demand.
The Problem of Employment 12. The command economy, based on state orders, did not force high-cost producers to cut costs to be competitive, or to respond to consumer demand by combining low price and high quality in order to win markets. With the change to production driven by consumer demand, the structure of output and the demand for labor will also change dramatically. As workers move into new productive activities, especially in the private sector, some periods of unemployment for millions of workers are almost inevitable.