Irish labour costs in line with EU average

Labour costs in Ireland have fallen for the third year in a row, bringing costs to employers into line with the EU average for the first time in years.

While ages grew in every other member state, they fell by 1.8% in Ireland, making labour costs sixth-lowest in the eurozone.

However, falling wages will not revive the economy, warned economist Tom McDonnell of the independent thinktank Tasc, as it means less money to spend in the domestic economy, the sector that was holding back economic recovery.