Real wages accelerate to 5% yoy growth in June

Real wages in Ukraine increased 4.8% yoy in June,
accelerating from 1.4% yoy growth in May, the State Statistics Service reported
on July 28. The average monthly nominal wage rose to UAH 11,579 a month (USD
434) from UAH 10,542 in May, or 9.5% m/m in real terms.

The leading regions for average monthly wages were the
city of Kyiv (UAH 16,393), Ukrainian-controlled Donetsk (UAH 12,445) and Kyiv
region  (UAH 11,795). The largest nominal average wage increase was in
“other services” (27.4%), medicine and social services (17.2% yoy), and
professional and research activities (12.0% yoy).

Within the industrial sector, the highest growth of
nominal wages was in electricity and gas supply (22.9% yoy), water supply
(20.0% yoy), and mining and chemicals (6.8% yoy).

Evgeniya Akhtyrko: The growth of real wages renewed itself quickly as soon as the major
quarantine restrictions related to the coronavirus pandemic were lifted. This
reinforces our expectation that private consumption in Ukraine will not be
severely affected by the crisis, as wage growth is the major driving force of
individual income. The accelerated growth of wages also indicates that the
crisis hasn’t had a deeply negative effect on the labor market.