Competition for skilled workers pushes wages in Ukraine above inflation - NBU
Kyiv • UNN
Companies face difficulties in finding qualified specialists, which pushes wage growth above the inflation rate.
Companies are facing structural distortions in the labor market, migration and mobilization have made it difficult to find specialists, and growing competition for skilled workers is pushing wages to above inflation, the NBU reported, UNN writes.
Details
Businesses are reportedly more active in their search for new staff compared to last year, with an increasing number of vacancies, especially in trade and services. However, structural distortions in the labor market often prevent companies from finding qualified specialists.
"Even before the full-scale war, companies faced the problem of finding qualified personnel, and mobilization and significant migration further complicated this process. As a result, unemployment is declining, but very slowly," the NBU said.
As noted, competition for qualified personnel is pushing companies to gradually raise wages. "Many companies are not only making nominal wage increases, but also real wage increases above the inflation rate," the NBU said.
According to the National Bank, real wages in the country grew by 3.5% last year, and are expected to rise further.
The NBU also forecasts a further decline in unemployment.
It is argued that the demand for skilled workers will continue to grow, especially if the security situation improves next year. Moreover, Ukraine will need new workers to rebuild, prompting companies to actively compete for workers, including soldiers returning from the front line and migrants. This competition will continue to push up real wages.
