During the first quarter of the current year, the average wage in Ukraine reached 18.9 thousand hryvnias. This is quite a noticeable increase, compared to the indicators of January-March 2023 (+22.5%). Even taking into account inflation, the rate of salary increase is quite high. However, in dollar terms, the level of wages in Ukraine still remains lower than before the full-scale war.
In which sectors earn the most and the least?
The information technology and telecommunications sector remains the leader in terms of official salaries. The average salary of such specialists in the first quarter was about UAH 49.5 thousand. Over the year, the salary of IT workers in hryvnia equivalent increased by 35.6%.
The second position is occupied by representatives of the financial sector (employees of banks, insurance, investment companies, etc.). During January-March, specialists in this field received an average of 39.1 thousand hryvnias (+18.2%).
In third place are airline employees with an average salary of UAH 34.7 thousand (+30%).
According to the State Statistics Service, the work of library, archive and museum workers is the least appreciated in Ukraine. despite the fact that the level of payment in the sector increased by 15.1% over the year, the average salary of museum workers and librarians is only 11.1 thousand hryvnias.
In second and third place among those who earn the least are also employees of the budget sector. In January-March, workers in the artistic field received an average of 11.5 thousand hryvnias per month (+13.6%), and workers in the field of education – 12.7 thousand hryvnias (+14.4%).
Where did wages grow the fastest?
Despite the fact that during the first quarter, the salaries of employees of the hotel business and catering increased the most (the level of wages in the industry increased by 44.1%), they still receive relatively little – an average of 15.1 thousand hryvnias.
Also, the average salary of construction workers increased by 44% (up to 14.6 thousand hryvnias). The salary of postmen and couriers increased by 38.2% (up to 13.7 thousand hryvnias).
In these industries, the growth was caused not so much by development, but by extreme necessity – without an increase in the salary level, representatives of the construction industry, waiters or couriers would look for other jobs and the shortage of personnel would be very noticeable. In addition, many people in the construction or hotel and restaurant business receive the so-called “salary in envelopes”, and only the indicators of the “white” salary are included in the official reports.
What does the general situation look like on the labor market?
Compared to EU countries and other developed countries, the level of salaries in Ukraine remains low. Only in one sector the level of average monthly salary reaches more than 1 thousand dollars. The average salary in the entire market (18.9 thousand hryvnias) is about 470 dollars. This is still less than it was in 2021, when the average salary in dollar terms was $513.
In the largest export-oriented industry, which provides more than half of foreign sales – agriculture – the average salary has still not even reached the level of 15 thousand hryvnias. although they increased by 19% in the first quarter. Low wages and difficulties with booking procedures can lead to an outflow of personnel from the industry, which will affect exports and the overall economy of the country.
Although the National Bank reports that the unemployment rate will drop by 0.8 percentage points to 18.2% in 2023, it is still much higher than before the start of full-scale war. In 2021, the unemployment rate was 9.8%. It is predicted that by the end of 2024, the number of unemployed will be 16-14%. Such high rates of unemployment have a negative impact on the general level of well-being of the population, its purchasing power and economic activity, and therefore do not contribute to the development of the country’s economy.
Despite this, due to mass migration of Ukrainians abroad and mobilization in some industries, there is an extreme shortage of qualified personnel. The fight for specialists will force businesses to raise wages. The most noticeable shortage of personnel is among traditional “male” professions (construction, transport industry, mining industry). In these sectors, wages will grow most noticeably. The wage rate will continue to increase in other industries as well.
The National Bank predicts that in 2024 the average real salary (taking into account the level of inflation) will increase by more than 8%.
