In Ukraine, the labor shortage is increasing, salaries in the private sector have stopped falling – NBU

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As of June 2023, the real wages of Ukrainians in the private sector actually stopped falling, this happened against the background of increased competition for labor.

About this it is said in the Macroeconomic and Monetary Review of the NBU for June 2023.

“Strengthening competition for labor may put upward pressure on salaries, primarily in the real sector,” the National Bank notes.

“Real salaries in the private sector against a low base of comparison have practically stopped falling, which, together with indexation of pensions and payments in the public sector, has supported household incomes,” the review says.

At the same time, the NBU notes, the further growth of wages is restrained by the difficult financial condition of enterprises and a high level of uncertainty.

In the II quarter of 2023, according to the EBA survey among small and medium-sized businesses, most companies (62%) paid salaries in full. At the same time, 32% declared the lack of financial reserves, 16% – fired employees. Among large international companies, according to the EBA, 90% paid their salaries in full, and only 5% of companies did not have financial reserves.

At the same time, given the labor shortage, the majority of enterprises (91%) do not plan changes in the number of employees. This was shown by a survey of the Institute of Economic Research.

“This indicates the stabilization of employment, however, at a much lower level than before the full-scale war,” the NBU added.

Read also: Labor market 2023: where are the highest salaries now and which specialists are in demand

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