“Labor shortage supports wage growth, but in real terms it has slowed – NBUThe labor market is recovering, but the shortage of workers is holding back real wage growth. Employees’ expectations regarding
wages correspond to employers’ offers.”, — write: unn.ua
Details”The labor market is reviving: the number of vacancies and resumes is growing. Thanks to the increase in labor supply, the shortage of personnel has eased somewhat. Job seekers’ expectations regarding wages are comparable to employers’ offers, which limits the potential for a more significant increase in wages in the future,” the review says.
It is noted that in May, both the number of new vacancies and resumes increased (on average, vacancies increased by 7% y/y, and resumes by 36% y/y).
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The outpacing growth of resumes, as noted, has somewhat mitigated the problem of staff shortages, although it remains significant and continues to limit the activities of enterprises. At the same time, it is indicated that there is also a significant mismatch between professions.
The shortage of workers continues to support the growth of nominal wages, but high inflation leads to a slower increase in real wages
According to job search sites, as well as a study by the State Employment Service, job seekers’ expectations regarding wages are comparable to employers’ offers, which limits the potential for a more significant increase in wages in the future, the NBU said. It is also reported that the role of non-price methods of competition for employees is growing (provision of housing, remote work, etc.).
AdditionIn April, the National Bank’s inflation report stated that wages in Ukraine may increase in 2025-2027 due to a shortage of labor. The projected growth is at the level of 3-4% per year.
The Ministry of Economy reported in April that the trend towards an increase in the average monthly salary in Ukraine has not stopped. In 2024, it increased from 21,473 to 24,153 hryvnias.