incidentally, we will have the opportunity to hear one of these researchers tomorrow. the current crisis could even lead to a more significant increase in economic inequality than its predecessors, as it is more pervasive and profound than previous crises. unfortunately, ukraine is all too familiar with many of these problems we expect that unemployment in ukraine will peak at 11. 5 % in q2 2020 due to the corona crisis, compared to 8. 2 % last year. as the gradual easing of quarantine measures that has started in may continues and the economy recovers, unemployment will also decline in h2 2020, but will remain higher than last year. the job losses that hit ukrainians as businesses closed down have not only complicated job search efforts by increasing the workload per vacancy, but also have shown that there will be no easy solution to the labor migration problem in ukraine. some ukrainians working abroad did not even return home for the quarantine, as they in particular feared the prospect of becoming jobless in ukraine. they chose remaining abroad and being temporarily unemployed over coming home and struggling to find any work at all after the lockdown is lifted. and those who did return are now forced to compete against “ local ” laid - off workers for jobs that rarely pay as much as these migrants earned in other countries. for this reason, migrant workers have been leaving ukraine again in search of better pay since quarantine restrictions were partially relaxed. demand for ukrainian workers in poland, for example, has not disappeared. however, most of the problems in the ukrainian labor market are not related to covid - 19. first, one of the systemic problems of the ukrainian economy has for years been the mismatch between job seeker skills and employer requirements. late last year, a third of companies cited labor shortages as being one of the key factors limiting production, according to business surveys. this partially explains why unemployment in 2019 was quite high despite significant demand for labor from businesses. not the least role in this is played by the fact that the ukrainian education system does not keep 2 / 4 bis central bankers'speeches up with the changes in the modern labor market, which are taking place under pressure of globalization and technological progress. as a result, according to the state statistics service, in ukraine about a third of employees with higher education worked in a profession that does not require such. this is one of the highest rates in europe. • second, low productivity. despite having grown over the past 15 years, productivity is

##y. to the extent this is done generally across those funds that are less transparent, have weak risk management disciplines and / or inadequate operational infrastructure, they will be able to take on less leverage, which would limit the potential risk they may pose in a disruptive event. as these points suggest, it is not enough to simply manage the firm ’ s direct potential future credit exposure to hedge funds within prudently low limits. this has to be complimented with a more exacting approach to the evaluation of a firm ’ s overall vulnerability to market risk that includes full consideration of the potential impact of a large shock, including one that involves hedge funds. alongside these enhancements to risk management practices, we believe that market participants should also intensify their efforts to improve the underlying infrastructure of the markets in which hedge funds are important. weaknesses in close - out procedures for otc derivatives were among the areas singled out by the crmpg for collective action in the wake of ltcm, and important progress has been made in this area since. in addition, there are potentially valuable efforts underway to standardize documentation and improve the confirmation and execution process in these markets. but looking forward, given the size of the otc derivatives markets and the participation of hedge funds in those markets, it is worth reflecting on whether central counterparty clearing arrangements for the more standardized portion of the otc derivatives market could play a useful role. certainly, there are many challenges associated with such a project, and its potential to mitigate risks effectively would have to be clearly demonstrated, but surely it is worth looking carefully at whether that or similar efforts could provide meaningful improvements to the core infrastructure of what is undoubtedly a systemically important set of markets. taken together, these areas of focus are important to ensure that there is adequate capital not just against growing direct exposures to hedge funds, but the indirect exposures that could affect market conditions and firms ’ positions in a more stressful environment. we believe that the dealers that act as major counterparties to hedge funds have a collective interest in improving market practice in these areas. this is a good time for them to reassess how practice has evolved against the standards set out by the crmpg in 1999, and to examine whether the bar established at that time is appropriate for the conditions that exist today. it took a major market event to expose the extent of weaknesses in market practice that prevailed prior to 1998 and to catalyze improvements across the financial community. those reforms have played an important