Wage growth in the Irish economy rose sharply in the first half of 2022, the Central Bank has revealed
A study for the bank concluded that the Irish economy has rebounded strongly since lockdown and that wage growth was two to three times pre-pandemic levels between January and June.
The Central Bank has forecast that wages in Ireland will grow at roughly 5-6% in the next two years; by contrast, the eurozone average is expected to be slightly lower at 4-5%.
“Our own recently published analysis of wage trends – from online job ads – are broadly tracking these projections,” Deputy Governor Donnery said.
“Posted wage growth accelerated in the first half of 2022 to reach roughly two to three times pre-pandemic levels.
“Early signs are that wage growth has plateaued at these historically high levels — and actually fallen in some countries.
“Combined with gradually declining job postings in certain countries, this suggests that some employers are starting to rethink their demand for labour as they balance the currently tight labour market against an increasingly uncertain and deteriorating economic outlook.”
In January next year, the minimum wage will rise by 80 cents to €11.30 - as part of a Government plan to raise it to 60% of the median national income.
"That works out at an extra €31 a week, an extra €120 a month or more than an extra €1,600 a year,” Tánaiste Leo Varadkar said.
"So we hope that this increase - which is the largest single increase in the minimum wage since it was invented - will go in some way to help those on low pay with the rising cost of living.”
Main image: A 'Staff Wanted' sign in Belfast. Picture by: Alamy.com