Higher wages lost to rent hikes

WORKERS enjoyed an extra €26 a week in earnings in the past year, official figures show.

Average weekly earnings were €783 at the end of last year – up from €757 a year earlier – according to the Central Statistics Office.

The best-paid jobs are in the information and communication sector, where the average weekly wage is €1,241, followed by the financial, insurance and real estate activities sector, at €1,115.

But Michael Taft of the Siptu trade union warned that many people who rent their homes will have seen any increase in their earnings eaten away by the cost of accommodation. ‘If you’re a renter, you’re going to find that rents will have increased far faster over the last five years, much faster, than wages,’ he said.

However, the increase was welcomed by small businesses group ISME, whose chief, Neil McDonnell, said: ‘It’s good to see earnings going in the right direction. In the long run though, if we maintain consumer price rises at just over 1%, that’s not going to be recoverable for a lot of small enterprises. It’s not sustainable in the long run without inflation or increased productivity.’ The lowest average weekly earnings were €381.50 in accommodation and food services, and €517.04 in the arts, entertainment, recreation and other service activities sector.

Aaron Willis of GPD Property Developers, said the construction industry ‘is suffering a shortage of supply in the workforce available, so this is putting greater pressure on wage costs’.

He added: ‘It is hitting employers hard – particularly the smaller ones... The CSO report shows average weekly earnings for the industry as a whole have risen by 2.7% in the last 12 months.’