Jump to content
House Price Crash Forum
gruffydd

Irish Wages Fall 3.8% Yoy - And Worse Is To Come Warn Employers

Recommended Posts

Pay down 4pc but worse is to come, say employers

By Fergus Black

Saturday September 11 2010

EMPLOYERS last night warned of further drops in workers' income as official figures revealed that pay was down by almost 4pc in the space of a year.

Average weekly earnings fell by 3.8pc from the first quarter last year to the same period this year. This was due to a drop in average hourly pay and number of hours worked, according to the Central Statistics Office.

The weekly earnings of the lowest paid workers in the economy -- clerical, sales and service staff -- fell by 5.9pc in the year to the first quarter of 2010.

Only in two out of 13 sectors did average weekly earnings rise.

Topping the table were weekly earnings of €1,013.59 in the financial, insurance and real estate sector -- up 1pc on the previous year.

Meanwhile, employees in professional, scientific and technical jobs earned an average €856.30 a week, up 3.1pc.

Trade union Mandate said the latest earnings figures showed that workers on lower incomes were being squeezed the hardest by the recession.

"Ironically, while the incomes of the lowest paid workers are falling lower than others within the economy, the pressure they are experiencing from rising prices is the greatest," John Douglas, union general secretary said.

Average weekly earnings for such staff were now less than €470 per week and worked out at around €24,000 per year, he added.

Employers' group ISME said the latest figures came as no surprise and warned that unless there was an economic upturn the trend would continue.

Smaller companies were finding the current environment extremely difficult and had been forced to reduce labour costs and cut staff numbers and hours of employment, ISME's Jim Curran said.

The latest figures show that average weekly earnings were €682.91 in the first quarter of the year, a drop of more than €26 on the €709.55 weekly figure a year earlier. Across the economic sectors there were falls in average weekly pay in 11 of the 13 sectors covered.

The largest decreases were in education, with average weekly earnings of €809.24 (-9.1pc), and transport and storage with €680.15 (-7.3pc).

Lower

Earnings of clerical, sale and service employees fell by almost 6pc compared to a much lower drop for managers, professionals and associated professionals (3.9pc) and production, transport, craft and other manual workers (3.5pc).

The figures also showed that weekly earnings in the public sector fell further (5.5pc) than in the private sector (2.8pc).

According to the CSO, the figures reflect the decreases in public sector pay rates announced in the December Budget. However, earnings in the public sector were calculated before the pension levy was introduced in March 2009.

The latest figures follow news that soaring mortgage repayments rates have driven up the cost of living for the first time in nearly two years.

And they come as artists prepare to take to the streets next week in protest over the collapse in their income.

Artists will take their protest to the Department of Arts, Tourism and Culture on Thursday to highlight their plight.

"It's hard to make a living as an artist in the best of times," said Des Courtney, group secretary of Irish Actors Equity. "But the recession and cuts in the arts are making things near to impossible for many artists."

- Fergus Black

Irish Independent

Share this post


Link to post
Share on other sites

And they come as artists prepare to take to the streets next week in protest over the collapse in their income.

Artists will take their protest to the Department of Arts, Tourism and Culture on Thursday to highlight their plight.

"It's hard to make a living as an artist in the best of times," said Des Courtney, group secretary of Irish Actors Equity. "But the recession and cuts in the arts are making things near to impossible for many artists."

Artists have suffered no tax on their income in Ireland since the late '60s - a cap was put on the allowance last year, but alot of them have been subsidised by the taxpayer all along. And all they ever criticised in their right-on, student union style was conservative politics - not a word against leftwing excesses and the collaboration with the banks. Useless hypocrites.

Share this post


Link to post
Share on other sites

> Meanwhile, employees in professional, scientific and technical jobs earned an average €856.30 a week, up 3.1pc

A couple of years a go my company hired a bunch of IT workers in Ireland because the Irish gov't subsidized IT employee wages to the point where they were competitive with India and China. Assuming this artificial distortion is still occuring, the resulting demand for Irish tech labour explains why wages in this sector are going up. Tech sector wages certainly aren't increasing like this in North America.

Share this post


Link to post
Share on other sites

Anyone expect to see wages (generally) falling in the UK? And if so when?

If this happens here we'll see millions move quickly from happiness to misery on the Micawber scale.....a sea change of sentiment.

Share this post


Link to post
Share on other sites

I paid myself 50% more this year :)

good thing I chose IT and started own company instead of falling for the construction trap that so many people fell into for the want of "easy" money during the bubble here in Ireland

These people who chose building used to laugh at the likes of me because I went on to get a science degree and then engineering masters, instead of going into the building industry where they were creaming it in without much education

now the same people are on the dole while i happily grow business, next step for me is to move company out of ireland so i dont pay with my large taxes for these people

can you guess that I was bitter and now ecstatic that the whole property bubble has burst dragging all the clowns with it :P

Edited by yelims

Share this post


Link to post
Share on other sites

Anyone expect to see wages (generally) falling in the UK? And if so when?

If this happens here we'll see millions move quickly from happiness to misery on the Micawber scale.....a sea change of sentiment.

We are already seeing real term falls in income in the UK - Vocalink Take Home Pay Index showed yoy increase of 0.8% in July - that's well below inflation. Heavy erosion of incomes by inflation.

Edited by gruffydd

Share this post


Link to post
Share on other sites

This can only lead to deflation

I don't see why - in a global economy, why can't you have wage deflation in one country together with rising inflation? Especially in an economy like ours which is so reliant on imports from rapidly expanding economies with inflation issues.

Edited by gruffydd

Share this post


Link to post
Share on other sites

We are already seeing real term falls in income in the UK - Vocalink Take Home Pay Index showed yoy increase of 0.8% in July - that's well below inflation. Heavy erosion of incomes by inflation.

Well yes but wage rises of less than the inflation rate have become normal. If wages and inflation start moving in the opposite direction this isn't just more of the same....people's behavior will change. eg taking out a zero % loan (car or bike) makes some kind of sense if your wages are going up but most would think twice with falling wages.

Just having to make the same monthly payments from a declining income is the stuff of nightmares.

Edited by council dweller

Share this post


Link to post
Share on other sites

Well yes but wage rises of less than the inflation rate have become normal. If wages and inflation start moving in the opposite direction this isn't just more of the same....people's behavior will change. eg taking out a zero % loan (car or bike) makes some kind of sense if your wages are going up but most would think twice with falling wages.

Just having to make the same monthly payments from a declining income is the stuff of nightmares.

You`ll be lucky

Share this post


Link to post
Share on other sites

Anyone expect to see wages (generally) falling in the UK? And if so when?.

http://www.dailymail.co.uk/news/article-1293121/Average-annual-salary-drops-2-600-just-months.html

The average annual salary has dropped by more than £2,600 in the last six months, it emerged today.

New figures reveal employers are still exercising caution, with wages falling across the board from £28,207 to £25,543 - a difference of £2,664.

Salaries in the financial sector appear to have suffered the most - those offered at the point of entry have dropped by almost £12,000.

The figures show that where young bankers could have expected to start on £52,174.43 six months ago, they will probably earn closer to £30,127.60 now.

Staff in the legal sector are also feeling the pinch with pay for new recruits averaging out at £42,583.27-a-year compared with £53,841.50 six months ago - a fall of £11,258.22.

By contrast, the management sector has seen a healthy rise in wages of £6,223.01, despite the current financial climate.

Edited by exiges

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 141 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.