Wages Continue to Increase but Fall Behind Inflation

Rising wage average still falling behind inflation according to the Central Statistics Office (CSO) latest earnings and Labour costs figures for April to June. The average weekly wage has risen by 4.3 percent while annual inflation is running at 5.8 percent. The defence sector saw the highest increase in wages at 9 percent with the financial, insurance and real estate activities sector following at 7.5 percent.

Wages were not the only thing to increase with other labour costs, such as PRSI, pension contributions, and benefits-in-kind, increasing by 11.6 percent. The annual rate of inflation in July was down from 6.1 percent in June but July marked the 22nd consecutive month where the inflation rate was above 5 percent. It also shows that the average number of paid hours worked a week stands at 32.4 percent, down from 32.6 percent last year.

A new survey by Lockton People Solutions Ireland looked at what employees would like to see from their employers. The new data found that if given the option, a significant number of Irish workers would opt for unlimited annual leave and a four-day working week. 66 percent of women and 59 percent of men would be in favour of a switch to a four-day work week. Additionally, 63 percent of women and 54 percent of men would prefer more flexibility in working hours. The cost-of-living crisis was also reflected in the survey results with 27 percent of respondents saying that employer-sponsored spending cards would be their top option if given the choice.

Employees would also like to see their employers do more for diversity and inclusion. A new study from the Irish Centre for Diversity revealed a third of workers in Ireland do not feel their organisations treat everyone fairly. While 90 percent of respondents said they felt respected by their colleagues, two out of five respondents said they did not feel their organisation advances equality of opportunity. Half of the respondents said they did not think their organisation is doing enough for diverse groups.

To engage with AmCham on topics related to talent, please contact Christina Kelly, Public Affairs and Advocacy Manager, at c.kelly@amcham.ie.