Real wage growth accelerates to 9.8% yoy in September

Real wages in Ukraine grew 9.8% yoy in September,
accelerating from 7.7% yoy growth in August, the State Statistics Service reported
on Oct. 28. The average monthly nominal wage amounted to UAH 10,687 a month
(USD 431), increasing from UAH 10,527 in August, or 0.7% m/m in real terms.

The leading regions for average monthly wages were the
city of Kyiv (UAH 15,626), the Ukrainian-controlled Donetsk region (UAH
11,907), and the Kyiv region (UAH 11,166).

The largest nominal average wage growth was in
industry (23.3% yoy), health care and social assistance (20.7% yoy), and professional,
information and telecommunication services (19.3% yoy). Within the industrial
sector, the highest nominal wages were in pharmaceuticals (UAH 19,166), mining
(UAH 16,643), and coke and oil production (UAH 15,394).

Evgeniya Akhtyrko: Real wage
growth accelerated in September despite increased month-to-month
inflation. The wages in industry are growing at the fastest
rate even amid stagnating output growth.
This indicates high demand for labor in the sector.

We expect real wages to climb 9-10% yoy in 2019
(vs. 12.5% yoy in 2018).