In May, the drop in wages in the private sector ranged from 25% to 50% compared to pre-war times.
By the end of 2022, the income of Ukrainians Ukrainians will fall by 25%. This is stated in the inflation report of the National Bank.
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In general, nominal wages will be reduced by 12%, and in real terms (adjusted for inflation) – by 27%.
“In the future, with economic recovery and revival of demand for labor, nominal wages will grow rapidly and exceed the pre-war level in 2023. However, taking into account inflationary processes, real wages by the end of 2024 will still be below pre-war levels,” the report said. .
The NBU said that Ukrainian businesses tried to pay salaries, and some made additional payments or provided financial assistance, although they did not work.
“However, as the conflict continued, businesses were more likely to lay off staff and most were unable to pay pre-war wages. In large companies, especially international ones, those who paid full wages prevailed. However, even as these companies optimize staffing There is less stability in SMEs, therefore there are more layoffs and wage cuts,” the report said.
It has also been observed that excess supply over demand in the labor market causes a decrease in expected wages. According to various surveys, the fall in wages in the private sector in May ranged from 25% to 50% compared to pre-war times. The situation is somewhat better in the public sector.
It is argued that the population’s loss of income was partially compensated by social benefits, increased pensions and a significant increase in military payments.
According to polls, in Ukraine, the dynamics of the return to work rate, observed in the past three months, has slowed down. The number of those who lost their jobs rose to 39%. Half of the respondents took a pay cut.
Source: korrespondent
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