Salaries in Ukraine Will Increase by More Than 12%, Labor Shortage Persists

In Ukraine, there is a persistent labor shortage despite an increase in the number of job seekers. Employers are raising salaries to attract specialists. The National Bank expects that in 2023, real wages will increase by more than 12%. The problem of mismatched skills between candidates and employer needs is particularly noticeable in blue-collar professions. Companies are focusing on young people and older individuals, creating conditions for the return of veterans. However, these measures are insufficient to fully meet the business's staffing needs. In 2022, real wages increased by 7%. Wage increases are observed in both the private and public sectors, especially in education. The growth in household income supports purchasing power and consumer demand, but it also puts pressure on prices. Employers continue to compete for skilled workers, using wage growth as the main tool for attracting and retaining staff. By 2026, employers will be able to pay for employee training tax-free, provided it takes place in Ukrainian educational institutions and does not exceed 25,941 UAH per month.