Jim Power: Small firms face hikes in wage costs as jobs market remains buoyant

One of the features of the labour force and the business environment that puzzles me to some extent, is the narrative about the challenges facing business owners, particularly due to labour market measures introduced by government. Yet, the reality is that the labour market remains strong

Labour market measures that are impacting particularly heavily on labour-intensive small and medium sized firms, or will impact over the next couple of years, include the increase in the national minimum wage; increased PRSI rates; the move towards a living wage; pension auto-enrolment; statutory sick pay; and the increase in other benefits.

The latest report by the Economic and Social Research Institute was realistically upbeat about the prospects for the Irish economy in the year ahead, and was, significantly, modestly more upbeat than its previous offering in December. 

The ESRI projects modified domestic demand — a better indicator for what is really happening on the ground — will expand by 2.3% this year and by 2.5% in 2025. Such outcomes would represent a positive outturn in the midst of considerable global uncertainty.