The National Bank predicts that “by the end of this year, real wages will exceed the pre-war level.”
Competition for workers forces employers to raise wages, so the real wages (taking into account inflation) of Ukrainians will increase by 14% and exceed their pre-war level by the end of 2024. This is stated in the Inflation Report of the National Bank of Ukraine (October 2024).
A shortage in the labor market boosts wage growth.
In particular, in the second quarter of 2024, on average, real wages increased by 17.6% y/y, nominal wages – by 22.1% y/y. According to the available indirect data, the high growth rates of nominal wages continued in the third quarter.
However, the increase in inflationary pressure led to a certain slowdown in the growth rate of real wages, although they still remained high and further supported private consumption, the NBU reported.
“By the end of this year, real wages will exceed pre-war levels and continue to rise because of the great competition among employers for the existing workforce,” the forecast said.
The NBU previously expected real wages to exceed pre-war levels by 2025.
As we have already written, wages in Ukraine continue to grow. Wages exceeded pre-war dollars.
Average wages and pensions have increased in Ukraine
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.