Steeper slide in wages than analysts predicted ->
independent.ie/business/iris … 85684.html
WAGES are falling faster than most economists had predicted – which could have significant implications for forecasts of consumer spending and economic growth.
In its latest quarterly economic commentary published today, the Economic and Social Research Institute (ESRI) assumes a 1pc fall in wages this year. But the eagerly awaited first full survey of earnings from the Central Statistics Office yesterday showed a much steeper drop in earnings.
Those figures show a 1.8pc fall in hourly earnings in the second quarter of the year, which included a 2.8pc drop in private sector earnings.
Over the 12 months to the end of June, private sector average earnings fell 3.1pc. But with so many low-paid workers losing their jobs in construction and retailing, thereby increasing average earnings, statisticians reckon the actual fall in earnings for those still in work could be 4pc-5pc, rather than 3.1pc.
there is more
With deflation running at 5-6% this is not too bad, still a plus of 1-3%. Could be worse in a recession…
(Not saying this is good, but always look at the bright side…)
All I can say is that staff at non minimum wages have dropped a damn site more than 3%. If a guy on 45k resigns, for whatever reason, you can now hire a replacement at 32k.
Agree with that. Can’t say it is bad though - wages in this country where quote out of whack with rest of Europe.
One example - avg industrial wage Ireland 2006 ~ 31K, Austria 2006 ~ 23K (top of myhead)
Just goes to show how patriotically minded the “public sector” workers were in foregoing such a large amount of their wages for the benefit of everybody else…