Ukraine intends to reform the Cabinet of Ministers. The final concept for this government reform is not yet available, but it will most likely be implemented next year.
The planned reform of executive power includes not only a change in the structure of the Cabinet of Ministers, but also a significant reduction in staff. This is due in part to modern society’s general digitalization.
“When the corresponding function can be performed automatically using software tools and algorithms, then the human resource can be reduced, because such a large number of people are not required,” explains Ilya Neskhodovskyi in a comment to “Apostrophe”.
This, of course, fits with the fact that, according to reports, one of the main lobbyists for the reform is Mykhailo Fedorov, Minister of Digital Transformation. Previously, the country’s main “digitalizer” allegedly proposed reducing the state apparatus by 100,000 people. According to the current version of the reform, the number of dismissed employees should be around 65,000, but this is a large number. Around 15,000 people can be laid off only in Kyiv, where the offices of the central executive authorities are located. As a result, approximately 50,000 workers in the regions will lose their jobs.
Ilya Neskhodovskyi does not consider this a tragedy, emphasizing that those fired during the reform will receive two months’ salary as severance pay. He claims that they will have enough time to find new employment, including, retraining.
“Ministries are not centers for distributing social assistance to people who are unable to work,” the expert explained. Although there is an exception for people of pre-retirement age – a special program can be created for them that will support those people in a different way than others, because it is extremely difficult for them to find work.
However, the Ukrainian labor market is currently in a very difficult situation, which is undoubtedly related to the war. According to Ministry of Economy projections, the unemployment rate will be 30% by the end of 2022. Even if hostilities cease by next year, when the reform is supposed to be implemented, the situation is unlikely to change dramatically.