The average hourly earnings of workers in the Republic have jumped by 24.7 per cent since the Covid-19 pandemic was first detected in late 2019, led by technology workers, according to new figures.
Employees in the information and communication sector saw their hourly earnings increase by 35.3 per cent on average in the five years to the end of 2024, the Central Statistics Office (CSO) outlined on Wednesday in a report on how employment, earnings and air travel have evolved since the onset of the pandemic.
They were followed by people working in administrative and support services, up 26.5 per cent, and education, up 17.8 per cent, the data show. The smallest five-year increase was recorded in the transportation and storage sector, where earnings only edged 8.5 per cent higher.
The surge took place against the backdrop of inflation taking hold across economies globally from 2021, initially driven by supply bottlenecks for goods following the worst the pandemic, before being accelerated by the impact of Russia’s invasion of Ukraine early the following year.
It also reflected tight labour conditions in certain sectors in a strong domestic economy, following an initial jump in unemployment levels when much of the world went into lockdown in early 2020.
The total number of people in employment fell by about 200,000 – driven by younger workers aged between 15 and 24 – to a low point of 2.2 million in the six months to June 2020, before recovering to exceed the pre-pandemic level a year later, according to the CSO.
A record 2.8 million were in employment in the economy at the end of last year, when the unemployment rate stood at 4.2 per cent – which is widely viewed by economists as full employment. The rate has since fallen further, to 3.9 per cent, as of last month.
Still, the Central Bank said on Tuesday that it expects the rate to pick up to average 4.6 per cent this year, and rise further to 4.7 per cent in 2026, as labour supply is set to further increase from both net inward migration and labour force participation, fuelled by older workers.
The Central Bank also lowered its forecast for modified domestic demand (MDD) – its preferred gauge of economic performance – to 2.7 per cent from the 3.1 per cent estimated in December due to the uncertainty set to weigh slightly on consumption, exports and investment amid the threat of US tariffs under president Donald Trump.
Turning to air travel, the CSO noted that it would be January 2023 before monthly passenger numbers handled by the country’s five main airports recovered to pre-pandemic levels on a comparative month basis.
