Galloping wage growth in Ukraine will begin soon, employers simply will not have a way out - expert

29 May 2022, 21:11 | Economy
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The revival of the Ukrainian economy - this year is gradual, and next year - fantastic, against the backdrop of a shortage of labor and a competitive labor market in Europe, will force Ukrainian employers to start raising salaries very soon, and from next year - to increase at an irrational pace. This opinion was voiced by the well-known Ukrainian economist Mikhail Kukhar..

The expert noted that the recession in the Ukrainian economy should end in the second quarter of 2022. Already from the third quarter, there will be relief, in particular, this can be seen in wages, which, after almost halving, will begin to rise sharply.

Today, according to him, Ukrainians are still getting poorer, as prices in the country are rising, and salaries do not change.. This is felt by both Ukrainians who have savings in dollars and those who keep income in hryvnias..

This situation is associated with several factors:.

projected price increase in Ukraine by 20%;

an unprecedented number of migrants who took $ 3 billion abroad.

However, according to him, no matter how much the Ukrainian economy has fallen, the average wages in Ukraine today will not fall below $400..

" These are sad numbers, and it's not our fault, even if we fall on these numbers.. But our economic models show that there is no direct correlation between the fall in GDP and dollar wages in Ukraine.. Wages fall more slowly. Entrepreneurs should get into their reserves, but maintain a more or less decent level of wages,"

This will also be facilitated by a labor shortage..

" The current unemployment is temporary. Already there is a relocation of production, the resumption of businesses. Labor shortage will occur before the end of this year. This is bad news for Ukrainian employers, but good news for people,"

According to him, the worst forecast for the level of falling wages indicates that they will not fall below $ 400, even in a war.. But then the processes of galloping wage growth will begin..

“Before the start of a full-scale war, the average salary of a Ukrainian was $615 (18,000. UAH, - edit. ), in Kyiv it was 925 dollars (27 thousand. UAH - red. And we do not expect that the level of the average salary can fall to 400 dollars (11.8 thousand. UAH, - edit.

But then they will begin to gallop to grow. Because next to us is the competing European Union and Ukrainian employers simply will not have such a luxury to underestimate the level of wages,"

Recall, according to Mikhail Kukhar, Ukraine in 2023-2025 will receive fantastic injections into the economy that it has never had - this is at least $ 200 billion, which will be provided at the expense of the arrested gold and foreign exchange reserves of Russia. This will lead to "




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