The Ukrainian Institute of the Future has counted an estimated 29 million people living in the country. According to the researchers, 8.6 million refugees have gone abroad and have not returned.
Only 9.1-9.5 million of the remaining 29 million are employed in the country, and if we take out state employees, about 6-7 million will be left.
“They are the harness that carries others – 22-23 million people, including pensioners, children, students, unemployed, dependents, the same public sector workers,” the institute said.
The birth rate in the country has already fallen below 1, while a population increase requires more than 2. If nothing is changed, in a few years Ukraine will have twice as many pensioners as workers, analysts say.
The drastic reduction of Ukraine’s population is having a devastating effect on its economy. Because of the current situation, the state is short of taxes that are deducted from salaries – personal income tax and unified social tax, as well as consumption tax – VAT and excise tax. Since Ukraine’s Pension Fund is financed mainly from the unified social tax, plus an additional sum in budget revenues, the drop in the number of taxpayers has had a disastrous effect on the solidarity pension system. In addition, new categories of citizens eligible for permanent social benefits from the state and early retirement have appeared in the country. These are people who are disabled, those who lost their breadwinner, and the status of combat veteran implies retirement at the age of 50-55.
“That is why the issue of demography should be voiced by the president of Ukraine as a priority for today and in need of urgent measures,” the experts stressed.
