Wage rises still being outpaced by inflation

July was the 22nd straight month that inflation was running above 5%

The average hourly wage for workers in Ireland has grown to €28.07 as of the end of June compared to €26.72 last year. 

The average weekly earnings by workers in Ireland has risen by 4.3% to €909.77 per week compared to the same period last year at a time when annual inflation is running at 5.8%, new figures show.

Data from the latest Central Statistics Office (CSO) earnings and Labour costs results for April to June show the average hourly wage has grown to €28.07 from €26.72 during the same period last year. This equates to €909.77 a week, up from €871.93.

The public administration and defence sector saw a 9% increase in weekly earnings from €1,019.96 to €1,112.18, the largest annual percentage increase across all sectors of the economy. The second largest increase was 7.5% in the financial, insurance and real estate activities sector which rose from €1,246.87 to €1,339.81 over the year.

The sector with the highest average hourly labour cost is the information and communication technology (ICT) sector at €51.53. This is followed by €48.19 an hour in the financial, insurance and real estate activities sector.

The accommodation and food services sector had the lowest average hourly labour cost at €17.58 followed by the arts, entertainment, recreation and other services sector at €24.02.

Average weekly earnings up 4.3% in the 12 months to Q2 2023https://t.co/m76xrf78Xf#CSOIreland #Ireland #Earnings #LabourCosts #LabourMarket #BusinessStatistics #Business #BusinessNews #IrishBusiness

@emma_SBP_Money @gavreilly @jobsireland @Niall_Brady @PatKennyNT pic.twitter.com/KCX0lejqCS

— 🎄Central Statistics Office Ireland (@CSOIreland) August 29, 2023

It also shows that the average number of paid hours worked a week stands at 32.4, down from 32.6 last year.

Other labour costs have increased by 11.6% to €4.71 an hour in the three months to the end of June compared to €4.22 an hour last year.

Other labour costs are costs to the employer, in addition to wages and salaries, of employing labour. These can include social contributions such as PRSI, pension contributions, and benefits-in-kind.

The job vacancy rate at the end of June was 1.3%. Public administration and defence had the highest job vacancy rate out of all economic sectors at 3.4%.

According to the latest consumer price index, annual inflation in July was running at 5.8%, down marginally from 6.1% in June. It was the 22nd straight month that inflation was running above 5%.