2009-04-22
Have you heard of any available job somewhere? My employer has announced that we will run out of business in about four-five weeks
Anja is calling me. Her usual happy and enthusiastic voice is now dull. Half a year ago the future looked so bright that some "cool" Ukrainians wore sunglasses indoors. There were no limits on how much money they could make. Now, company after company closes, everything shuts down and they have to relocate.
Ukrainian employers lower wages or send their employees on unpaid vacation against their will. In this way, they hope that their employees will quit on their own. Foreign establishments cancel their new investments and some leave the country entirely.
For Anja, who belonged to Ukraine's growing middle class, the situation is unexpected. She and her peers have been accustomed to regular promotions and salary increases over the past five years, constant calls from recruiters on the job, extended benefits and more. Anja belongs to the group of people that everybody wanted to hire - well-educated, energetic and with good English skills. She has belonged to the Ukrainian group that actually begun to believe in themselves and the future of the country after all crises.
Nobody knows how big the middle class in Ukraine is and how to count it. Middle class outside Kiev can be those earning between 400-1.000 USD a month, while prices in Kiev means that the middle class rather earns between 1.000- 4.000 USD a month. But in any case, this group has increased and has meant a lot for Ukraine's development in recent years especially within services.
Last fall, we started to feel the slowdown in the Ukraine. Then, mainly unskilled workers and office staff were affected. Now the cuts also affect people with special skills as the companies actually starts to go bankrupt. This scenario has been impossible to imagine when the economic development curve has been on the rise for so long.
Many young people without savings have lent a lot of money for apartments and cars. Julia and Andrey, a young successful couple who both work in marketing, rented an apartment from someone who rented it from the landlord for many years. But the rents increased, for a while with almost ten percent a month, so finally they felt that they had to buy their own. Unfortunately, they made a business decision that will affect them. 100.000 USD for an apartment that was not in great condition and the size of 40 square meters in a suburb, just when prices were the highest in April 2008. I remember how Andrey on the move in party proudly declared: The value of this apartment will soon be doubled. It is good because in a year we will not live here anymore, then we will have gotten something bigger!
April 2009. Andrey has been sent on unpaid vacation for an indefinite future and Julia’s wage has been lowered. The whole Julias salary goes to cover the loan. A larger apartment and plans for children have to wait. Andrey is depressed and does not want to go out. His self-esteem is down and he barely wants to hang out with his friends.
The total official unemployment is estimated to 15 percent. Hidden unemployment may, however, mean that it is really the double. In some industry-regions unemployment can be up to 30 percent. Officially, Ukraine currently has half a million graduates officially unemployed.
According to a new survey, one third of all companies plan to cut the number of employees within the next month. In the same survey, it is now ten times as many applicants for each job advertised in the press and on the Internet.
I remember how Ukraine was in the middle of the 1990´s. They ate once a day and on the washing lines they hung out plastic bags inside out to dry. All families had their homes filled with cans. I remember how it was tomatoes and cucumbers in glass cans behind the sofa, TV and even under the bed. Under the sink carrots, onions and potatoes were hidden. Sometimes they could afford to buy some bananas and that was luxury.
Of course, it has been wonderful for many Ukrainians to avoid this situation for now. They are afraid that they will have to face the same situation again.
- All bring lunchboxes to work now, says Anja whose employer has given notice of the real estate business. Most colleagues have sold their cars and go by subway to work. Many are talking about getting allotments. We just have to forget to eat out as we did several times a week earlier. I am considering starting my own business, continues Anja. Maybe start selling toys or underwear from China? Cheap is good!