Negative demographic trends formed in the Donetsk and Luhansk regions before the temporary occupation by the Russian Federation intensified significantly after 2014, the Centre for Economic Strategy reports.
In particular, the two regions is seeing a record aging of the population: the share of children aged under 15 is decreasing, while the number of people aged over 65 is growing.
The negative impact of the occupation on the formation of human capital is also felt in the field of education. Damaged infrastructure and a militarised environment reduce the quality of life of children and negatively affect the educational process.
The destruction of 750 schools and kindergartens is among the consequences of the occupation and the constant military confrontation.
Although the Donetsk region has the highest average wage among all regions, except for Kyiv city (due to the employment of a large share of workers in high-paying industry), it also has one of the highest levels of wage arrears across the country (13% of last year’s payroll fund).
Human capital is also negatively affected by the region’s shortage of doctors, especially at the second and third levels of health care.