Earnings continue to rise steadily
Earnings data shows that wages continue to rise but at a relatively modest pace considering the recent period of elevated inflation post pandemic. Hourly earnings rose by 5.4% year-on-year (y-o-y) to €29.71 in Q2. However, as inflation has fallen back considerably now, real incomes are rising steadily, and with inflation set to remain low, there may be less upward pressure on wage demands going forward. Despite a record number of people in work and low unemployment, the labour market does not appear to have overheated. That has been helped by a growing labour force which is being driven by healthy population growth and inward migration. A CSO estimate this week shows the population rose by nearly 100,000 in the year to April 2024, to 5.38m.
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