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4.4.2 Nominal wages dynamics
Real disposable income of Ukraine's citizens rose 9.9% y/y in 2018,
accelerating from 7.4% y/y growth in 2017, the State Statistics Service reported on Apr. 4. Average disposable monthly income per individual increased to UAH4,826 ($177) from UAH3,814 ($143) in 2017. Nominal gross income of individuals rose 21.4% y/y, driven mostly by accelerating wages (26.2% y/y) and social income (18.0% y/y). The nominal income of private entrepreneurs and self-employed individuals improved 18.3% y/y, while property income rose 3.0% y/y. Spending on goods and services surged 21.4% y/y. Higher wages and social payments fuelled by accelerated economic growth continued to be the major contributors to individual income growth throughout 2018. At the same time, lower inflation contributed to accelerated disposable income growth in real terms.
On average, Ukrainian companies raised wages last year by 15-20%, Yuriy Perch, Ukraine director for the ANKOR job agency, tells 112.ua for a detailed story about labour migration. To hold on to employees, Metinvest and OKKO raised salaries by 30% last year. since 2015, the average farm salary has tripled, says Leonid Kozachenko, president of the Agrarian Confederation. With farms in neighboring countries recruiting Ukrainian tractor drivers and combine operators, “labour shortage” suddenly displaced ‘corruption and raiding’ for second place on the Confederation members’ worry list, after shortage of credit.
31 UKRAINE Country Report May 2019 www.intellinews.com