The Ministry of Economy explained the increase in wages in Ukraine: who gets the most
A number of factors have influenced the size of official salaries since the beginning of the war.
Ukrainian enterprises are increasing the level of wages in order to retain and attract new highly qualified personnel against the backdrop of a shortage of labor resources in the country. This is stated in monitoring of the main events in the economy of Ukraine for June 2024, published by the Ministry of Economy.
The influence of the factors of 2022
According to the Ministry of Economy, the level of wages in 2023-2024 continues to be affected by the consequences of active hostilities in a large area of Ukraine. Key factors include:
- Temporary loss of a significant area.
- Destruction of infrastructure and enterprises or their damage, which led to the suspension of their activities.
- Significant permanent destruction of logistics.
- A significant number of able-bodied population abroad (migrants) and in the ranks of the Armed Forces of Ukraine, which creates structural imbalances in the labor market.
Salary statistics
The Ministry cites data according to which the average salary for vacancies on job sites increased in July 2024 to 19,553 hryvnias. According to the State Statistics Service, the average salary in the first quarter of 2024 was 18,903 hryvnias.
The highest salaries by field of activity
- Information and telecommunications: 49,473 hryvnias
- Financial and insurance activities: 39,116 hryvnias
- Professional, scientific and technical activity: 26,316 hryvnias
- State administration and defense: 23,376 hryvnias
They pay the least in the field of education – the average salary here is 12,649 hryvnias.
Government forecast
The Ministry of Economy has changed its expectations for wage growth in 2024. It is forecast that the average monthly salary of employees (gross) will amount to 20,581 hryvnias, and the adjusted for inflation will increase by 12.0%. Previously, the average salary was forecast at 21,809 hryvnias, but the real salary growth was only 8.5% due to higher inflation.
Expectations of enterprises
Heads of Ukrainian enterprises predict an increase in salaries in the next 12 months. However, expectations for an increase eased slightly in the second quarter.
Thus, the growth of salaries in Ukraine is due to both the need for highly qualified personnel and the economic conditions that have developed as a result of hostilities and the destruction of infrastructure.
