31 May 2022
Go to release: Earnings and Labour Costs Q4 2021 (Final) Q1 2022 (Preliminary Estimates)
The Central Statistics Office (CSO) has today (31 May 2022) issued Earnings and Labour Costs results in respect of Preliminary estimates for Q1 2022 and Final estimates for Q4 2021.
Commenting on the release, Louise Egan, Statistician, noted the impact of COVID-19 on the results:
“When considering the change in earnings, it should be noted that there may be a compositional effect due to the significant changes in employment in certain sectors. The composition of the labour market in Q1 2022 may be very different to previous quarters. The accompanying Labour Market Bulletin Insight Series gives greater detail on compositional changes in employment in certain sectors.”
Explaining the background to the release and outlining the headline results being presented today, Louise Egan continued:
“The Earnings and Labour Costs quarterly release publishes statistics on average weekly and hourly earnings, hours and labour costs. Across and within economic sectors, the impact of the COVID-19 crisis continues to be experienced very differently. Preliminary estimates for Q1 2022 show average hourly earnings increased on an annual basis by 1.9% to €27.33 while average weekly paid hours increased by 0.3% to 32.2 hours from 32.1 in Q1 2021. Average weekly earnings were €880.37, an increase of 2.3% compared with €860.19 in Q1 2021. The job vacancy rate in Q1 2022, which measures job vacancies on the last working day of the quarter, was 1.6%, up from 1.4% at the end of Q4 2021 and up from 1.0% at the end of Q1 2021. Average hourly other labour costs increased by 36.0% to €3.63 from €2.67 in Q1 2021. Refunded payments to enterprises, including EWSS, are recorded as subsidies and refunds received in the quarter, being amounts received by enterprises intended to refund part or all of the cost of wages and salaries and are deducted from other labour costs.”
Referring to the separate Labour Market Bulletin Insight Series also being published by the CSO today, Morgan O’Donnell, Statistician, commented:
“Today, the Labour Market and Earnings division in the CSO have also published the eleventh bulletin from the Labour Market Insight Series. The data used for the bulletin is sourced from administrative datasets, namely the Revenue Commissioner’s employee level tax data which includes information in relation to the EWSS, as well as data provided from Revenue in relation to the Temporary Wage Subsidy Scheme (TWSS).
Analysis presented in the bulletin supports results observed in the Earnings and Labour Costs release in relation to the quarterly changes in employments and earnings at a sectoral level between Q4 2021 and Q1 2022. It also presents analysis of the impact of the EWSS in both quarters.
Key findings from the bulletin include a decrease in the number of active employments in Q1 2022 when compared to Q4 2021. The sectors showing the largest percentage decrease in employments from Q4 2021 to Q1 2022 were the Accommodation & food services sector (-5.3%) and the Transportation & storage sector (-3.9%).
Average weekly pay (including EWSS where applicable) increased by 4.3% across all employments between Q4 2021 and Q1 2022. The sectors showing the largest quarterly percentage increase in average weekly pay were the Administrative & support service activities sector (+16.5%), the Financial, insurance & real estate activities sector (+11.8%) and the Industry sector (+7.4%).
For employments that were active in both Q4 2021 and Q1 2022, average weekly earnings increased by 5.9%, with changes by sectors ranging from an increase of 22.7% in the Financial, insurance & real estate activities sector to a decrease of 3.4% in the Construction sector.
In relation to the EWSS, in Q1 2022, 12% of active employments in NACE sectors B-S were directly supported by the scheme. The proportion of employments supported by the EWSS in Q1 2022 varied across the sectors with the Accommodation & food services sector (65.5%) and the Arts, entertainment, recreation & other service activities sector (36.2%) having the highest proportions and the Public administration & defence sector (0.2%) having the lowest proportion.
Analysis presented in the bulletin supports results observed in the Earnings and Labour Costs release in relation to the quarterly changes in employments and earnings at a sectoral level between Q4 2021 and Q1 2022. It also presents analysis of the impact of the EWSS in both quarters.
Key findings from the bulletin include a decrease in the number of active employments in Q1 2022 when compared to Q4 2021. The sectors showing the largest percentage decrease in employments from Q4 2021 to Q1 2022 were the Accommodation & food services sector (-5.3%) and the Transportation & storage sector (-3.9%).
Average weekly pay (including EWSS where applicable) increased by 4.3% across all employments between Q4 2021 and Q1 2022. The sectors showing the largest quarterly percentage increase in average weekly pay were the Administrative & support service activities sector (+16.5%), the Financial, insurance & real estate activities sector (+11.8%) and the Industry sector (+7.4%).
For employments that were active in both Q4 2021 and Q1 2022, average weekly earnings increased by 5.9%, with changes by sectors ranging from an increase of 22.7% in the Financial, insurance & real estate activities sector to a decrease of 3.4% in the Construction sector.
In relation to the EWSS, in Q1 2022, 12% of active employments in NACE sectors B-S were directly supported by the scheme. The proportion of employments supported by the EWSS in Q1 2022 varied across the sectors with the Accommodation & food services sector (65.5%) and the Arts, entertainment, recreation & other service activities sector (36.2%) having the highest proportions and the Public administration & defence sector (0.2%) having the lowest proportion.
EWSS payments accounted for 2.5% of total earnings across all sectors (B-S) in Q1 2022, down from 4% in Q4 2021. In the Accommodation & food services sector EWSS payments represented 35.9% of total earnings, while in the Arts, entertainment, recreation & other service activities sector and the Transportation & storage sector, the proportions were 11.8% and 5.5% respectively.”
Referring to the ongoing reporting difficulties being faced by enterprises due to COVID-19, Louise Egan explained:
“Preliminary estimates for Q1 2022 continue to be impacted by lower response rates than in 2019.
The sectors particularly impacted by low rates of survey response were Construction, Transport & storage and Accommodation & food services sector. Caution is therefore advised in relation to the Preliminary estimates published today.” (Please see the updated Technical Note – Impact of COVID-19 on the Earnings and Labour Costs release - updated Quarter 1 2022 for more information).
Louise Egan (+353) 21 453 5951 or Morgan O'Donnell (+353) 21 453 5269
or email earnings@cso.ie
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