Average weekly earnings rose 2% in late 2021 before spike in energy costs

The data showed the Employee Wage Subsidy Scheme accounted for almost 46% of earnings in the accommodation and food services late last year

The CSO figures suggest that there were few to no wage pressures in late 2021.

Average weekly earnings rose by 2% late last year before the huge spike in energy had sparked price inflation across the economy, official figures suggest. 

The CSO said weekly earnings rose to just over €864.50 in the final quarter of 2021 compared with just over €847.20 a year earlier.

The Central Bank and other economists are on the lookout for so-called second-round effects from the sudden acceleration in inflation after household and business energy bills rose sharply as the global economy recovered from the Covid crisis. 

Average hourly earnings and the job vacancy rate increased in the year to Q4 2021https://t.co/EEhOLPpwt1 #CSOIreland #Ireland #Earnings #LabourCosts #LabourMarket #BusinessStatistics #Business #BusinessNews #IrishBusiness pic.twitter.com/HjlZZduaCx

— Central Statistics Office Ireland (@CSOIreland) March 1, 2022

The build-up to the Russian invasion of Ukraine had further propelled global oil and European gas prices higher.           

However, the figures suggest that there were few to no wage pressures in late 2021 at any rate, as the effects of Covid restrictions still weighed on accommodation, pubs and restaurants. 

The CSO said average hourly earnings increased by 2.6% to €26.22 from €25.56 from a year earlier.

In other insights, it said the Employee Wage Subsidy Scheme, or EWSS, accounted for almost 46% of earnings in the accommodation and food services. In arts, entertainment, and recreation, EWSS accounted for almost 20% of earnings. 

The CSO also said the job vacancy rate in the fourth quarter at 1.4% compared with the rate of 1.5% in the previous three months. It was up sharply from 0.9% at the end of 2020.