Labour costs jump 3.7% as average earnings rise by 1.2%

Average annual earnings jumped by 1.2 per cent in 2015 to €36,519 from €36,090 a year earlier, according to new figures released by the Central Statistics Office (CSO).

The data show annual earnings were at their highest level since 2009 as more people returned to work and pay rises came into play.

Annual labour costs also rose to their highest level in seven years, jumping by 3.7 per cent to €68 billion in 2015. This compares with a high of €74.9 billion in 2008 and a low of €62.8 billion in 2011.

The CSO figures show earnings for full-time employees increased by 0.5 per cent to €45,075 in 2015 while part-time employees saw a 2 per cent increase to €16,332.

Total earnings, which also include overtime payments, rose to €58.8 billion last year, up 3.6 per cent on 2014. The increase was largely driven by a rise in the average numbers employed and an increase in hours worked.

All wage bill components increased last year, with the 3.6 per cent increase in total annual earnings being made up from increases in employment of 2.4 per cent, in average hourly earnings of 0.2 per cent and in average weekly paid hours of 1.3% per cent.

Those working in the ICT sector enjoyed the highest average wages at €55,976, followed by those employed in the financial, insurance and real estate space with wages of €53,014.

Last year, full-time employee regular earnings totalled €46.8 billion, equivalent to 68.8 per cent of total labour costs. This compares to €44.9 billion in the preceding year. Part-time employee earnings totalled €7.2 billion, equivalent to 10.5 per cent of the total.

The figures show part-time earnings have increased every year from 2008 to 2015 due to the growth of part-time employment from 2010 onwards. Earnings of apprentices and trainees fell substantially from 2008 to 2012 but have risen in each year from 2013 with an increase of 10.6 per cent last year.

Overtime earnings, which decreased by 25.5 per cent in 2009 and continued to fall each year to 2013, rose slightly last year.

The average annual hourly earnings of all employees totalled €21.90 in 2015. The education sector recorded the highest hourly earnings of €34.15, although it also had the lowest number of weekly paid hours.

The CSO figures comes as the National Competitiveness Council recently warned of a slow erosion of Ireland’s price advantage which it said risks reversing the gains made in recent years. A recent survey from the Small Firms Assocation meanwhile, found Irish labour costs are the tenth highest in Europe and are 20 per cent above the EU average.