Real wages rise 10% yoy in December

Real wages in Ukraine rose 10.1% yoy in December,
accelerating from 8.1% yoy growth in November, the State Statistics Service
reported on Jan. 28. The average monthly nominal wage amounted to UAH 14,179 a
month (USD 503), increasing from UAH 11,987 in November, or 17.2% m/m in real
terms.

The leading regions for average monthly wages were the
city of Kyiv (UAH 21,812), Ukrainian-controlled Donetsk (UAH 14,720) and the
Mykolayiv region (UAH 14,605). The largest average nominal wage increase was in
medicine and social services (50.9% yoy), “other services” (33.7% yoy), and
professional and research activities (27.6% yoy).

Within the industrial sector, the highest growth of
nominal wages was in pharmaceuticals (17.6% yoy), electricity and gas supply
(13.9% yoy) and water supply (13.9% yoy).

Evgeniya Akhtyrko: The wage
surge in December is typical in Ukraine and mostly related to year-end bonus
payments to employees. The lower month-to-month inflation also contributed to
accelerated growth in real terms. In USD terms, the average wage in the country
exceeded USD 500, which is a comforting psychological result.

We expect real wages will rise 8-9% yoy in 2021. The
growth of wages will be boosted by economic revival and rising demand for
labor.