In 2024, the population’s real income growth accelerated. Their main component – wages – is growing, mainly in the private sector.
The Director of the Department of Financial Stability of the NBU Pervin Dadashova, referring to the presentation of the Report on Financial Stability, said that the real income of the population of Ukraine is growing significantly due to the increase in wages, pensions and more low inflation.
“The nominal incomes of the population are growing rapidly, and even the real incomes, taking into account the low inflation, are equal to the rapid growth,” he said.
According to the NBU, in 2024 the growth of the real income of the population will accelerate. Their main component – wages – is growing, mainly in the private sector. This is facilitated by the further continuation of economic activity.
“On the other hand, the average salary is raised by the increase of competition for workers The average monthly salary in the first quarter of 2024 increased by 22.5% compared to the level of a year ago continues to experience a lack of qualified workers ,” the report said.
More than half of the employers surveyed by the Ministry of Economy and the IOM in February-March noted that finding workers is the main difficulty in their activity.
The gradual increase in the minimum wage at the beginning of the year and in April had a positive effect on income levels. The general growth of the population’s income was boosted by the increase in payments to budgetary institutions, as well as financial allowances for military personnel. Due to the continuation of additional payments for February-April 2024, nominal payments to the military increased by 10% on an annual basis. Pension payments also continue to grow due to indexation. Another significant factor in the growth of real incomes is a significant slowdown in inflation.
It was noted that despite the persistence of security risks and the deterioration of energy infrastructure, the economy will continue to grow. Business activity can help reduce unemployment.
Competition among employers for qualified workers will continue to drive wage increases.
“According to a survey of businesses conducted by the NBU in the first quarter, 77% of respondents planned to increase wages in 2024. The government also intends to increase the wage level for military personnel However, the accelerating inflation will somewhat slow real income growth,” said the National Bank survey.
We remind you that last year the average salary in the economy was UAH 17,442. Compared to 2022, the nominal average salary increased by 17.5% (+2,594 UAH).
It was also reported that in Ukraine in 2023 the number of millionaires will increase by 1,200 people.
Source: korrespondent
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