Average weekly earnings for employees in the Irish economy rose by 5.6 per cent (on annual basis) in the final quarter of last year while average hourly earnings rose by 6 per cent.
The elevated levels of wage growth come amid concern that higher levels of inflation, particularly in the services sector, is being driven by higher wage demands.
While European Central Bank (ECB) policymakers remain concerned about inflation linked to wage growth, they are expected to cut interest rates by a further 0.25 of a percentage point next month with worries about Europe’s flagging growth now superceding inflation.
The latest earnings and labour costs data from the Central Statistics Office (CSO) show average weekly earnings were €979.71 in the final quarter, up 5.6 per cent from €927.98 during the same period in 2023.
Average hourly earnings, meanwhile, rose by 6.2 per cent to €30.21, up from €28.44 in the final quarter of 2023.
The CSO figures showed average weekly earnings rose across all 13 sectors of the economy.
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The largest annual percentage increase in average weekly earnings was 6.6 per cent in the information and communication sector, with the second largest increase of 6.5 per cent seen in the education sector.
Information and communication workers were the highest paid workers in the State, earning on average €1,685.13 per week, up 6.6 per cent year on year, followed by employees in the financial insurance and real estate sector who earned on average €1,329.30 per week, up 1.2 per cent.
Workers in the arts, entertainment, recreation and other service activities sector were the lowest paid earning on average €667.33. However, the latter figure reflects the high level of part-time staff in the sector.
Average weekly earnings increased by 6.4 per cent across the public sector, rising from €1,119.37 to €1,190.86.
An Garda Síochána had the highest average weekly earnings and average weekly paid hours in the public sector at €1,543.44 and 41.4 hours respectively.
The CSO’s data indicated that average hourly labour costs grew by 6.1 per cent to €35.52 on an annual basis in the fourth quarter.
The State’s job vacancy rate, which measures job vacancies on the last working day of the quarter, was 1.1 per cent, down from 1.2 per cent.
