Real wages up by 11%

Economics - 30 January 2012, Monday 12:05

KYIV (QHA) - In 2011, wage growth decreased from 20.1% to 16.2%, the State Statistics Service disclosed.
At the same time, real incomes of Ukrainians rose even more against 2010 - by 11% thanks to a good price conjuncture.
In 2012, the experts expect the slowdown of the wage growth on the backdrop of the inflation acceleration, and hence, real increase of incomes of Ukrainians will be insignificant, Ukrinform reports with reference to Kommersant-Ukraine newspaper.
The average official wage in Ukraine by the end of 2011 exceeded UAH 3,000 (1 USD - 7.99 UAH), the State Statistics statement reads. Thanks to pre-New Year payments, Ukrainian workers in December received by 12% up against a month earlier - UAH 3,054. A year ago, New Year bonuses exceeded the average wage amount by 11.7%, however, in January 2011, it fell by 12.6%. The same dynamics is possible in the current year too.
"Under current conditions, business did not fully refused from bonuses and the wage rise, but approaches the wage rise very selectively. Currently, the labor market does not belong to a workers, but to an employer," Executive Director of the European Business Association Hanna Derevianko said.
In 2012, the experts expect further hampering of income growth for Ukrainians. "Rising of wages in the real sector will be insignificant, but the situation will be kept by the budget sector, since due to the oncoming elections rather high rates of the minimum wage growth are laid down in the state budget," analyst of Concorde Capital investment company Vitaliy Vavryshchuk says.
According to him, "nominal increase of the average wage in 2012 will be less against the previous year, about 12-14%, although the situation may be saved by low inflation."
Other experts do not believe in preservation of the price growth low rates, for instance, the World Bank forecasts acceleration of inflation to 9.4% in 2012. This means that real incomes of Ukrainians will be about zero this year, and in many sectors their fall is possible.

 
QHA