Page 29 - UKRRptJun21

4.5.2 Nominal wages dynamics
Real wages in Ukraine rose 19.7% y/y in April, accelerating from 9.5% y/y growth in March, the State Statistics Service reported on May 28. The average monthly nominal wage amounted to UAH13,543 ($485), declining from UAH13,612 in March, or 1.2% m/m in real terms.
The leaders for average monthly wages were the City of Kyiv (UAH20,422) as well as Kyiv (UAH13,908) and Ukrainian-controlled Donetsk (UAH13,886) regions. The largest average nominal wage increase was in hospitality and catering services (99.4% y/y), healthcare and social services (66.8% y/y) and real estate operations (52.5% y/y).
Within the industrial sector, the highest growth of nominal wages was in the textile industry (60.1% y/y), machinery (47.1% y/y), and furniture production (37.8% y/y).
“The accelerated growth of real wages in April was due to the low comparative base of April 2020 (-0.4% y/y),” Evgeniya Akhtyrko of Concorde Capital said in a note. “We expect real wages will rise 8-9% y/y in 2021. The growth of wages will be boosted by economic revival and rising demand for labour.”
With inflation running at 8.4% real wages are rising more slowly than they were, but they are still making gains which is feeding consumption.
In March nominal wages slipped slightly to UAH13,543 ($492), but real incomes fell further due to inflation, although inflation is also falling now after the recent rate hikes which will improving incomes in the coming months somewhat.
All-in-all the gap between Ukrainian wages and Russia wages continues to close. Russian wages in dollar terms is stuck at about $600 per month but has
29 UKRAINE Country Report XXXX 2018 www.intellinews.com