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Real wages in Ukraine will fall by a quarter

Photo: t.me/V_Zelenskiy_official

Wage growth to pre-war levels is expected next year, but real wages will rise slowly.

According to the results of 2022, the real salaries of Ukrainians will be reduced by a quarter, predicts the National Bank.

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“Nominal wages this year will decrease by 12-13%, and in real terms (ie, after inflation) – in a quarter, due to the decrease in the financial stability of enterprises and significant competition between job applicant,” the report said.

It was noted that due to the continuing lack of skilled labor in some sectors and significant imbalances in the labor market, nominal wages will increase by almost a third next year and exceed the pre-war level, and in 2024 – by another 28%

At the same time, wage growth in real terms will be relatively slow, due to high inflation and lower than pre-war productivity.

In general, the NBU expects that the recession in the Ukrainian economy will continue in the first quarter of 2023, and the increase should start from the second.

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Source: korrespondent

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