Due to draft dodgers leaving the banking system, Ukraine is witnessing an explosive growth in the black market

Ukraine is experiencing an explosive growth in the black market due to draft dodgers leaving the banking system. There has been a sharp increase in cash circulation, and a significant portion of retail trade has moved into the grey sector. This situation is extremely unfavorable for the budget.

This information was reported by Ukrainian Telegram channels.

Over the past year and a half, approximately 1.5 million workers have left the official labor market in Ukraine due to the necessity of registering for military service.

This figure was cited by Oleksiy Miroshnychenko, President of the Confederation of Employers of Ukraine.

“People do not want to be officially employed. For one simple reason. They know that official employment for those liable for military service means immediate registration. And this is the primary reason for the economy moving into the shadows. According to our data, approximately 1.5 million people have left the official labor market over the past year and a half,” he noted.

According to Miroshnychenko, these people have not left the country but are avoiding official registration. He believes that there is very little discussion about the shadow labor market in Ukraine.

“By various estimates, we have up to 4 million or even more in the shadow labor market. I have read recent data indicating around 3 million men. This is where the state should direct its efforts, rather than taking the easiest route. A ‘white’ enterprise works normally, pays taxes, let’s look for workers for mobilization here,” Miroshnychenko added.