The Cabinet saw a positive effect from the increase of the minimal wage

Raising the minimum wage in January had a positive impact on the economy. About it reports a press-service of the Cabinet following the meeting of Prime Minister of Ukraine Volodymyr Groysman with the head of the Ministry Andrey Reva, Finance Minister Alexander Danyluk and head of the State fiscal service (GFS) Roman Nasirov.

“We spent the first month of 2017. On all counts we have today is a trend of increase the quantity, quality jobs and higher wages for people of working age,” – said the Prime Minister.

The Cabinet noted that in January the country was established 28 thousand new businesses and 16% decrease in the number of unemployed and deregulating the economy.

“February and March will clearly show that we have an increasing number of entrepreneurs, increasing the minimum wage, the average wage for Ukrainians, despite the fact that prices will remain within seasonal fluctuations without any other additional inflationary processes,” – said Groisman.

“What we talk about mass layoffs, I can tell you: he was warned about the dismissal of 29 thousand persons in January 2017. For comparison with January 2016 the number of those who were warned, or 26% less,” – said in turn, Reva.

Danyluk said that the economic data also shows that after the increase doubled the minimum wage is deregulating the economy and wages come out of the shadows. “The money directly form the resource, we get rhythmically as planned. Therefore, from the point of view of the budget, no risk”, – said danyluk.

We will remind, earlier the National Bank of Ukraine (NBU) has recognized that raising the minimum wage will accelerate inflation in Ukraine. At the same time, according to estimates of NBU the growth of the minimal wage also will accelerate the recovery of GDP.