Real wages in Ukraine increased 1.4% year on year in May, after sliding 0.6% y/y in April, the State Statistics Service reported on June 30. The average monthly nominal wage rose to UAH10,542 per month ($393) from UAH10,430 in April, or 0.8% month on month in real terms.
The leading regions for average monthly wages were the city of Kyiv (UAH15,191), Ukrainian-controlled Donetsk (UAH11,854) and Zaporizhia (UAH10,755). The largest nominal average wage increase was in “other services” (18.5%), professional and research activities (14.1% y/y), and medicine and social services (10.6% y/y).
Within the industrial sector, the highest growth of nominal wages was in electricity and gas supply (19.3% y/y), water supply (13.9% y/y), and coke and oil production (13.0% y/y).
“It is encouraging to see real wage growth during the month when the country’s economy was still affected by quarantine restrictions related to the coronavirus [COVID-19] pandemic. This indicates that private consumption in Ukraine might not be severely affected by the crisis, as wage growth is the major driving force of individual income. May's wage growth rate also implies that the current crisis hasn’t had a major negative effect on labour force demand (at least in the formal sector of the economy),” Evgeniya Akhtyrko of Concorde Capital said in a note.
This article is from bne IntelliNews Ukraine monthly country report. Sign up to receive the report to your inbox each month, which covers the slow moving macro- and micro-economic trends, the major political news and a round up of the main sectors and corporate news. First month is free and you can unsubscribe at anytime.
See a sample here.
Subscribe here (first month is free and you can unsubscribe at any time)
Or ask bne IntelliNews’s Stephen Vanson for a trial and corporate packages.
The report covers:
Or sign up to a trial by simply clicking on the button below. The first month is free and you can unsubscribe at anytime by sending an email to firstname.lastname@example.org