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Wage pressures still building in Ireland

Written by Robert McHugh, on 29th Aug 2019. Posted in Financial

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Irish wage growth continued at a brisk pace in the second quarter of 2019, according to new figures from the Central Statistics Office (CSO). This is despite the softer employment data earlier in the week.

According to the CSO, weekly earnings grew by 3.5% year on year (yoy) in the second quarter, a similar pace to that seen in the previous four quarters. The growth in the second quarter is all due to growth in hourly earnings (+3.8% yoy), with the number of hours worked falling on an annual basis. Growth in average hourly earnings is now running at its fastest pace since the first quarter of 2009.

The private sector is leading the growth in earnings; average hourly earnings grew by 4.4% yoy in the second quarter, relative to 1.7% yoy for the public sector. Most sectors are experiencing growth, with only two experiencing an annual decline in average earnings.

The fastest growth is in transportation and storage (+8%), followed by administration (+6% yoy), recreation (+5% yoy) and ICT (+5% yoy). These sectors have a range of income levels, highlighting again the widespread nature of earnings growth. 

According to Goodbody Stockbrokers, "As we noted on Tuesday, we wouldn’t get carried away with one weak quarter. The earnings data still suggests that wage pressures are present in the context of a rather tight labour market in Ireland."

Source: www.businessworld.ie 

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