Real wages rise 9% yoy in March

Real wages in Ukraine rose 9.3% yoy in March, slowing
down from 12.2% yoy growth in February, the State Statistics Service reported
on Apr. 28. The average monthly nominal wage increased to UAH 11,446 a month
(USD 433) from UAH 10,847 in February, or 4.8% m/m growth in real terms.

The leading regions for average monthly wages were the
city of Kyiv (UAH 17,990), Ukrainian-controlled Donetsk (UAH 12,225) and
Dnipropetrovsk (UAH 11,666).

The largest nominal average wage growth was in “other”
services (43.3%), information and telecommunication services (34.5% yoy), and
administrative and supporting services (24.6% yoy). Within the industrial
sector, the highest average nominal wages were in pharmaceuticals (UAH 24,775),
mining (UAH 17,795), and supply of electricity and gas (UAH 17,218).

Evgeniya Akhtyrko: The slower
growth of real wages was likely the result of two factors. Firstly, the labor
market was negatively affected by severe quarantine measures introduced by the government in the second half of March,
which resulted in the closure of many businesses. Secondly, higher consumer inflation in March
restrained the growth of wages in real terms.

We are likely to see a more significant slowdown in
real wage growth in April, as this month will fully absorb the negative
consequences of quarantine restrictions for the Ukrainian labor market.