Economic outlook concludes that many new jobs in Ireland are 'low paid'

Economic outlook concludes that many new jobs in Ireland are 'low paid'

An economic survey of Ireland indicates that many of the jobs that have been created recently are relatively low paid, according to the Economic Outlook for Friends First published today.

The outlook prepared by Jim Power concludes that the Irish economy continues to show solid momentum and most economic indicators are continuing to go up.

However it also concludes that there are many factors which could hamper its performance during 2017.

Mr Power, Chief Economist with Friends First, said: "Prospects for the year ahead are looking better than at the beginning of the year.

"Sterling has stabilised; the labour market is strong; business investment intentions are promising; and real GDP could well expand by 4.3% this year, which is up from a forecast of 3.3% at the beginning of the year.

"However there are many factors which could impinge on this growth not least uncertainty with Brexit, the continued caution of consumers, the increased level of employment not translating to an increased income tax take and the increase in the cost of living and the price of what are necessities for many people."

Mr Power's assessment was that, despite the growth in employment - up by 68,600 or 3.5% in the year to end of March 2017 - the income tax take is "somewhat disappointing".

He said: "The most obvious conclusion is that many of the jobs being created are relatively low paid and following changes to the USC in the past couple of budgets, many of the new employees may not be in the USC net at all or are paying very little tax based on earnings."

He also found that the financial burden on the squeezed middle is still intense.

He said: "House prices are rising strongly, which is putting upward pressure on mortgage repayments.

"In addition, the cost of living is rising quite strongly and is soaking up disposable incomes.

    In the year to the end of April:

  • private rents increased by 7.9% (they have increased by 53.4% since the end of 2010);
  • the cost of petrol increased by 9%;
  • the price of diesel increased by 13.8%;
  • the cost of home insurance increased by 8%;
  • the cost of Private Health Insurance increased by 10.1%;
  • the cost of motor insurance declined by 2.7%, but has increased by 57% over the past 4 years.

Mr Power said: "All of these increases in the price of what are necessities for many people are putting financial pressure on the personal sector and discretionary spending is still challenged."

More in this Section

400 jobs to be created as Screwfix plans Irish expansion400 jobs to be created as Screwfix plans Irish expansion

Dublin Port project raises concernsDublin Port project raises concerns

Unions call for pay-gap disclosuresUnions call for pay-gap disclosures

Brexit still means Brexit for this islandBrexit still means Brexit for this island


Lifestyle

We hear a lot about the geese, ducks and swans that arrive here from colder climes for the winter, but much less about smaller birds that come here to escape harsher conditions in northern Europe.Keep an eye out for redwings this winter

More From The Irish Examiner