Gerard Brady: Employers face significant additional wage bills driven by Government pledges

Just as the global economy starts to slow, the Irish Government has committed businesses to billions of euro of extra labour market taxes, entitlements, and regulations 

Raising the minimum wage by 12%, rising to 15% when additional PRSI costs are taken into account, is one of the costly measures the Government has agreed to. Picture: iStock

All signs are that the economy globally is beginning to slow, which isn’t unexpected as central banks increase interest rates to bring down inflation by first slowing the global economy.

Their policy is working: Price growth in the eurozone fell to 2.9% in October. For an Irish economy, which relies on global demand for our exports, the major danger now is that central banks may have done too much.