ESRI: Minimum wage workers in worst Covid-impacted industries

Minimum wage workers are being disproportionately hit by job losses during the Covid-19 crisis as they are more likely to work in industries which have faced the biggest impact.

A new study by the ESRI reports half of all minimum wage workers are employed in the accommodation, food and retail sectors, which have experienced widespread disruption and closure due to the pandemic.

These sectors, in particular those connected to tourism and hospitality, are expected to take longer to recover, meaning many minimum wage workers could face "a more prolonged period of disruption" too.

The minimum wage is €10.10 per hour. Some 8% of all workers are classed as minimum wage workers and that are also more likely to be women, work part-time and be aged 15-24 years.

Workers who have lost their jobs due to the pandemic are eligible to claim a pandemic unemployment payment (PUP) of €350 per week.

On average, minimum wage workers in retail and accommodation work 23 hours per week, earning a gross wage of €232.30 weekly.

The author of the study notes they are now able to claim €350 per week and said some of those in receipt of that money may "be less willing to accept a job than before the crisis" as a result.

Dr Paul Redmond, author of the report, said: ““The key policy question over the next 12 months will be whether the minimum wage should be increased, decreased or remain the same. The evidence shows that minimum wage changes have little effect on employment. We also know that changes to the minimum wage impact wage inequality. These are issues that will need to be considered by the Low Pay Commission and policymakers in the coming months.”

Meanwhile, a pan-European survey conducted by Eurofound shows Europeans are struggling with their response to the pandemic, with high levels of loneliness and low levels of optimism reported by people across the continent.

There is also a very low level of trust in national governments and in the EU, though Ireland ranks among the countries with the highest level of trust in the EU.

Respondents also reported an increase in remote work, increasing feelings of insecurity about job prospects, and a dramatic increase in working time.