In the second quarter, Irish workers saw their average weekly earnings surge by 5.6%, equating to €963.17 on an annual basis. Similarly, average hourly earnings also experienced a boost of 5.4%, bringing it up to €29.71.
These increases were higher than past reports and have caused apprehension over rising inflation rates, notably in the services industry. This surge in inflation is thought to be propelled by wage requests from workers attempting to counteract their diminishing real earnings in the face of rising inflation rates.
Officials at the European Central Bank (ECB) are concerned that it might prove challenging to control inflation if it is connected to wage growth. Despite this, the ECB in Frankfurt is expected to reduce interest rates by an additional 0.25% in the coming month as overall inflation across the union continues to slow down.
Recent information from the Central Statistics Office (CSO) on earnings and labour costs showed a 6.1% rise to €34.93 in average hourly labour expenses on an annual basis in the second quarter.
The CSO’s data also indicated that the highest earners in Ireland were those employed in the information and communication industry. Their average weekly earnings stood at €1,660.99, a 6.8% spike on an annual basis, and was over two-thirds more than the nation’s average.
Workers in fields such as construction, arts, entertainment, and recreation also witnessed a substantial increase in earnings. For instance, construction workers saw their weekly average earnings increase by 11.8% to €1,006.22, while those in arts, entertainment, recreation and other service activities sector saw an 8.9% hike to €648.95.
Workers in the food and accommodation industry, on the other hand, were the least paid, with average weekly earnings of €451.93. However, this segment includes many part-time employees, which leads to a lower average.
Notably, the job vacancy rate, which indicates the availability of jobs in the labour market, was at 1.1% in the second quarter, a slight decrease from the 1.3% reported earlier.
In conclusion, average hourly earnings in the second quarter of 2024 increased by 5.4% to €29.71, from €28.19 in the second quarter of 2023.