Page 25 - UKRRptJul21

4.5.2 Nominal wages dynamics
Real wages in Ukraine rose 16.8% y/y in May, slowing from 19.7% y/y growth in April, the State Statistics Service reported on June 29. The average monthly nominal wage amounted to UAH13,499 ($489), declining from UAH13,543 in March, or 1.6% m/m in real terms.
The leaders for average monthly wages were the City of Kyiv (UAH19,287), Ukrainian-controlled Donetsk (UAH14,457) and Kyiv (UAH13,850) regions. The largest average nominal wage increase was in hospitality and catering services (130.5% y/y), healthcare and social services (50.8% y/y) as well as arts, sports and recreation (47.5% y/y).
Within the industrial sector, the highest growth of nominal wages was in the textile industry (47.5% y/y), machinery (32.6% y/y) as well as wood processing and printing (30.1% y/y).
The outstanding growth of real wages in May was partially due to the low comparative base of May 2020 (up 1.4% y/y). The growth rate of wages will slow down in upcoming months as the low base effect will be wearing off.
Concord Capital expects 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.
25 UKRAINE Country Report July 2021 www.intellinews.com