Average earnings rise but fail to keep pace with inflation

Figures from the Central Statistics Office showed that average weekly earnings were €871.62 in the second quarter, up from €850.81 in the same period last year

The accommodation and food services activities sector recorded the lowest hourly cost of employing staff.

Average weekly earnings rose by 2.4% on annual basis, lagging behind soaring inflation rates as Ireland faces a growing cost-of-living crisis.

Figures from the Central Statistics Office (CSO) showed that average weekly earnings were €871.62 in the second quarter, up from €850.81 in the same period last year. Meanwhile, average hourly earnings rose by 2.7% to €26.78, an increase from €26.07 during the second quarter of 2021.

Over the past three years, average hourly earnings have risen by 13.0%, increasing from €23.69 during the second quarter of 2019 to €26.78 in the second quarter of 2022. However, there was no annual change recorded in average weekly paid hours recorded which remained at 32.6.

Louise Egan, statistician in the earnings analysis division, said: "Average hourly other labour costs increased by 43.0% across all economic sectors to €4.16 from €2.91 in Q2 2021. A significant factor in this increase was the winding down of the Employment Wage Subsidy Scheme (EWSS)." 

EWSS ended on 30 April 2022 for most companies and ended on 31 May 2022 for all remaining businesses that had been directly impacted by the Covid-19 restrictions introduced during December 2021. 

Average weekly earnings up 2.4% in the year to Q2 2022https://t.co/73KaZ4yMcS#CSOIreland #Ireland #Earnings #LabourCosts #LabourMarket #BusinessStatistics #Business #BusinessNews #IrishBusiness #LabourForceSurvey #Households #Families #LiveRegister #Employment #Unemployment pic.twitter.com/1YXwv1hoty

— Central Statistics Office Ireland (@CSOIreland) August 30, 2022

The information and communication sector was found to be the sector with the highest average hourly total labour costs at  €48.39. This was followed by the financial, insurance and real estate activities sector which had a rate of €45.72.

The industries that recorded the lowest cost of employing staff were the accommodation and food services activities sector with average hourly total labour costs of €14.72 and the arts, entertainment, recreation and other service activities sector which had a rate of €22.80.

The job vacancy rate at the end of the second quarter was 1.6%, recording no change from 1.6% at the end of the previous quarter.

The professional, scientific and technical activities sector was found to be the area with the highest job vacancy rate at 4.4%. This was followed by the financial, insurance and real estate activities sector with a vacancy rate of 3.1%.