Private sector wages up 2.2% in year

Weekly wages in the private sector grew 2.2% in the past year, while public sector wages were little changed, according to official figures.

The CSO said private sector average wages rose to just over €654 in the first three months from almost €640 a year earlier.

Average weekly public sector wages, which include people working in semi-state firms, were little changed at almost €906, when the effects of the temporary recruitment of thousands of Census enumerators is taken into account.

Weekly earnings rose in eight of the 13 industries the CSO tracks. Weekly wages surged, by an annual 7% in the financial, insurance, and real estate sectors to almost €1,162 in the first quarter.

In the public sector, four of the seven sub-sectors posted wage rises in the year.

Weekly wages in the semi-state firms rose by an annual 2.4% in the first quarter, while civil service wages were little changed in the year at €922, when the Census staff are excluded.

“Wages grew by 1.8% in 2015, driven largely by strong growth in a couple of private service sectors,” said Davy Stockbrokers.

“Public sector wages are now also on an upward trajectory and should push overall wage growth above 2% this year.

"However, inflation remains muted overall with unemployment still at a high 7.9%, but wage pressures could emerge in the near term if the recent rapid gains in the jobs market persist.”

The CSO also released details of its survey of wage rises since the depth of the financial crisis in early 2011.

People working in the information and communication industries have fared best — their wages have soared over 20% since early 2011.

Weekly wages for professional, scientific, and technical workers, in the arts, recreation, entertainment, and other service sectors, as well as those in financial, insurance and real estate activities have risen 12% to 15% over the last five years, according to the CSO figures.

Weekly wages of wholesale and retail workers and workers in the broad categories of industry and administration increased by about 7.5% since early 2011.

Over the same period, wages in construction, as well as in accommodation and food service, rose only slightly — by around 2.5%.

Two other categories, transport and storage and public administration posted little or no wage increases, the CSO said, while weekly wages in education and health shrunk by up to 5% since early 2011.

According to the CSO, the average hourly wage across the economy was at €22.25 in the first quarter this year, up 0.7%, or 15 cent from the previous quarter in 2015.

The Earnings and Labour Costs Quarterly survey also showed the job vacancy rate fell to 0.9% in the first quarter from a vacancy rate of 1% a year earlier.

The information and financial industries had the highest vacancy rates. Transport and education had the lowest rates.