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Record employment levels are putting upward pressure on wages

Written by Robert McHugh, on 2nd Jul 2019. Posted in Financial

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The unemployment rate for June was 4.5%, unchanged on the revised rate for May, and down from a revised 5.9% 12 months ago. The seasonally adjusted number of people unemployed fell by 30,500 between compared to a year ago.

A recent paper co-authored by Indeed and the Central Bank of Ireland noted that record employment levels are putting upward pressure on wages and salaries, with wage inflation for 2019 now forecast at 3.6%1.

Indeed’s review of recent Irish jobs posting shows that demand is growing fastest for roles in areas related to technical engineering and construction. There has also been rapid growth in demand for truck drivers, retail staff, teaching assistants and food prep workers. 

As noted in the Minister for Finance’s recent Summer Statement, Indeed say continued economic growth will depend on greater participation in the labour market by those currently outside it and further inward migration.

Commenting on the figures, Economist at Indeed, Pawel Adrjan said, "The possible fly in the ointment of the overwhelmingly positive Irish employment story is the ever-present risk of a no-deal Brexit, given the current dynamics of the Conservative Party leadership race in the UK. The Government has warned that 55,000 jobs could be lost in the first two years of a disorderly Brexit, and as many as 85,000 jobs over the longer term."

He added, "This stark warning is a reminder that the downward trajectory for unemployment that Ireland has experienced could be reversed by external events largely beyond Ireland’s control."

Source: www.businessworld.ie

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