As the Ukrainian military tries to hold the front line, the Ukrainian economy, which has lost a quarter of its production since the beginning of the invasion, risks further weakening due to personnel cuts, the publication writes.
The lack of personnel in Ukraine, which is already felt in Ukraine, will have a domino effect: first, businesses will reduce production, the tax base will decrease, which will ultimately damage the entire economy, including military purposes. This forecast was announced by Bloomberg.
“Staff shortages became a big problem for business because finding work required more and more energy from managers. During the war, wages exceeded the level before the Russian invasion in February 2022. The mobilization law, enacted last month, aims to replace the ranks of the Ukrainian army with hundreds of thousands of military personnel, however, the shortage of able-bodied men and women is a blow to businesses large and small, which is the basis of the wartime economy,” the publication wrote.
Bloomberg predicts that the problem will only get worse as Russia’s aggression continues.
“As the Ukrainian military tries to hold the front line, the Ukrainian economy, which has lost a quarter of its production since the beginning of the invasion, risks further weakening due to personnel cuts According to the Deputy Head of NBU Sergei Nikolaevchuk, the decrease in economic production compared to 2021, associated with personnel cuts, will be about 27% of the pre-war level In addition to more than 6 million people who fled the war, the the situation is complicated by men who have disappeared into the economy and avoid mobilization,” the publication said.
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Bloomberg in its material gives an example of a group Metinvest, which is trying to fill 4,000 vacancies, but faces the problem of finding workers at the Zaporozhye plant’s open-hearth production. In particular, according to the director of sustainable development and communication with the group’s personnel Metinvest Tatiana Petruk, finding 89 workers took three months of intensive work. In peacetime, it would take at least three times less time.
“The recruitment process is complicated because male employees are reluctant to work in large companies where military recruiters target “Military registration and enlistment offices at one point issued notices in recruitment at the entrances even among our candidates,” said Petruk. According to him, about 15% workers Metinvest mobilized in the army,” Bloomberg wrote, citing concerns that the company would be forced to “stop some processes or production facilities if the draft continues at this rate.”
We remind you that earlier Kiev Metro announced that it is changing train schedules on all lines due to an acute shortage of personnel.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.