Page 22 - UKRRptJuly18

4.4.2 Nominal wages dynamics
Real wages in Ukraine grew 14.1% y/y in May, accelerating from 12.5% y/y growth in April , the State Statistics Service reported on June 27.
The average monthly nominal wage increased to UAH8,725 a month ($333) from UAH8,480 in May, which is 2.9% m/m growth in real terms.
The leading regions for average monthly wages remained the city of Kyiv (UAH13,286), the Ukrainian-controlled Donetsk region (UAH10,166) and the Kyiv region (UAH8,783).
The largest nominal average wage growth was in public services (48% y/y), science and technology services (38% y/y), and transportation (31%). Within the industrial sector, the highest nominal wages remained in pharmaceuticals (UAH15,426), mining (UAH12,335), and metallurgy (UAH10,78.).
“Cooling inflation has helped to maintain a high growth rate of wages in real terms. We expect real wages to increase 9-10% in 2018,” Evgeniya Akhtyrko of Concorde Capital said in a note.
Employers are trying to compete with the lure of migration to Poland,
where salaries are generally four times higher than in Ukraine -- for the same work.
Without accounting for inflation, about 12% over the last year – regional growth rates were: Donetsk 31.3%, Luhansk 30.9%, Zaporozhye 30.7%, Dnepropetrovsk 29.7%, Zhytomyr 29.4%, Zakarpattia 29%, Chernihiv 28.7%, Vinnytsia 28.6%, Ternopil 28.4%, Chernivtsi 28.2%, Volyn 28.1%, Ivano-Frankivsk and Poltava by 28.0%, Kiev and Sumy by 27.6%, Lviv 26.1% and Kiev 25.8%.
Real wages were up 12.5% y/y in April , according to a post by Prime Minister Groysman. The government’s goal for 2018 is an average monthly wage of UAH10,000, almost $400.
22 UKRAINE Country Report July 2018 www.intellinews.com