Real wages increase 1.4% yoy in May

Real wages in Ukraine increased 1.4% yoy in May, after
sliding 0.6% yoy in April, the State Statistics Service reported on June 30.
The average monthly nominal wage rose to UAH 10,542 a month (USD 393) from UAH
10,430 in April, or 0.8% m/m in real terms.

The leading regions for average monthly wages were the
city of Kyiv (UAH 15,191), Ukrainian-controlled Donetsk (UAH 11,854) and
Zaporizhia (UAH 10,755). The largest nominal average wage increase was in
“other services” (18.5%), professional and research activities (14.1% yoy), and
medicine and social services (10.6% yoy).

Within the industrial sector, the highest growth of
nominal wages was in electricity and gas supply (19.3% yoy), water supply
(13.9% yoy), and coke and oil production (13.0% yoy).

Evgeniya Akhtyrko: 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 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 labor force demand (at
least in the formal sector of the economy).