Demand for labor in Ukraine stimulates wage growth.

In the July Macroeconomic and Monetary Review by the National Bank of Ukraine, an increase in employment vacancies indicates an increase in the demand for labor. This is partly due to a seasonal pick-up in hiring for construction and agriculture. However, the labor supply remained stable.

The National Bank says that increased competition for workers and the  preservation of labor market disparities, connected with migration that is still active, all of which occurs against the background of a low comparison base, have combined to cause wage growth recovery.

So, real salaries in the private sector of Ukraine have almost stopped falling. However, their further growth will be restrained by the difficult financial condition of enterprises and a high level of uncertainty. The NBU predicts that the average nominal salary in Ukraine in 2023 will increase by 21.9% and the real salary by 3.7%.