The COVID-19 crisis and the imposed quarantine and lockdown caused a reduction in output, household spending and trade in Ukraine. The economic contraction resulted in decreased employment and and increase in returning migrants, which reduced incomes and inflows of remittances. As in many countries, the quarantine restrictions have overwhelmingly affected urban MSMEs and those owned by women. MSMEs provide about 60% of employment and 20% of GDP in Ukraine. The effect was significant as high informal unemployment means there has been hardly any protection of labor rights for this demographic and has been a barrier for the affected population to access government support. There is also a large share of low skilled workers (up to 20%) who have not been able to telecommute, as reported by two thirds of rural and half of urban businesses. Finally, the National Social Security system was under pressure due to rising unemployment coupled with generally low savings across the population, resulting in limited sound coping strategies.
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The COVID-19 Data Futures Platform is a project of the United Nations Development Programme (UNDP). UNDP works to eradicate poverty while protecting the planet. We help countries develop strong policies, skills, partnerships and institutions so they can sustain their progress.


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