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Statistics in this publication are based on population estimates which have not been updated following Census 2022. See LFS Background Notes.

Labour Market Insight Bulletin, Series 2

Quarter 2 2020

CSO statistical release, , 11am

Labour Market Insight Bulletin, Series 2

Supplementary Labour Market Analysis Q2 2020

Key Findings

  • The number of employments active in Quarter 2 (Q2) of 2020 fell by 13.5%, when compared to Quarter 1 (Q1) 2020
  • The sectors showing the largest percentage reduction in employments from Q1 to Q2 2020 were the Accommodation and food services sector (-61.2%) and the Arts, entertainment, recreation and other service activities sector (-39.3%)
  • Average weekly pay (including Temporary Wage Subsidy Scheme (TWSS) payments where applicable) increased by 2.9% across all employments between Q1 and Q2 2020
  • The sectors showing the largest quarterly percentage increases in average weekly pay were the Arts, entertainment, recreation and other service activities sector (14.1%) and the Accommodation and food services sector (11.6%)
  • The largest quarterly percentage decreases in average weekly pay were seen in the Construction sector (-6.5%) and the Financial, insurance and real estate sector (-6.3%)
  • One in four of active employments in NACE sectors B-S (25.9%) received at least one payment from the TWSS in Q2 2020
  • The proportion of employments supported by the TWSS in Q2 2020 varied across the sectors with the Accommodation & food services sector (61.0%) and the Construction sector (54.2%) having the highest proportions and the Public administration and defence sector (0.3%) having the lowest proportion
  • TWSS payments accounted for 8.5% of total earnings across all sectors (B-S) in Q2 2020
  • In the Accommodation and food services sector TWSS payments represented 51.8% of total earnings, while in the Construction sector and the Arts, entertainment, recreation and other service activities sector the proportions were 24.2% and 24.1% respectively

Introduction

This bulletin is the second in a series of outputs designed to provide high-level supplementary labour market analysis to users alongside the standard labour market outputs and metrics. The data used is sourced from administrative datasets, namely Revenue's employee level tax data (PMOD) as well as data provided from Revenue in relation to the TWSS. This second bulletin is specifically designed to complement the standard Earnings & Labour Costs (ELC) results for Q2 2020. Further iterations of this output are likely to focus on specific aspects of the labour market.

The analysis in this bulletin relates to those employees working in enterprises with three or more employees in the NACE Rev 2 (see background notes) Industrial Sectors B–S inclusive.

Please Note: The data included in this bulletin are subject to revision as more information relating to employments and earnings for Q2 2020 are lodged by employers with the Revenue Commissioners and the data is subsequently made available to the CSO for statistical analysis purposes.

Percentage change in employment from Q1 2020 to Q2 2020

Between Q1 and Q2 2020 the number of employments fell by 13.5% with all economic sectors showing decreases.

The sectors showing the largest percentage reduction in employments from Q1 to Q2 2020 were the Accommodation and food services sector (-61.2%) and the Arts, entertainment, recreation and the other service activities sector (-39.3%).

The economic sectors with the smallest percentage decrease in employments were the Industry sector (-3.0%), the Human health & social work activities sector (-4.0%) and the Information & communication sector(-4.2%).

Change in employment
Industry-3.01555066043221
Construction-6.89584726246193
Wholesale & retail-11.3067092827213
Transportation-8.99017763362919
Accommodation & food-61.1673811654968
Information & communication-4.15169300225734
Financial & real estate-6.82267881717412
Professional & technical-8.79211843048565
Admin & support service-17.1494455835458
Public admin & defence-5.71899584227306
Education-5.98789131718842
Health & social-3.99631479157209
Arts & entertainment-39.2799357599147
All sectors-13.5317444700185

Percentage change in earnings from Q1 2020 to Q2 2020

When considering the change in earnings, it should be noted that there may be a compositional effect due to the significant changes in the number of active employments in certain sectors. The composition of the labour market in Q2 2020 was very different to the composition of the labour market in Q1 2020, with significantly fewer employments in certain sectors in Q2 2020. The changes in average weekly earnings in any sector may be impacted to some degree by those employments that have left the sector having lower/higher average earnings than those employments that remained in the sector in both quarters.

Any payments related to the Pandemic Unemployment Payment (PUP) scheme are not included in this analysis. Such payments are paid by DEASP to a person who has lost income from employment and where no attachment in the form of an employment contract is maintained between the employer and employee. Payments related to the TWSS have been included in earnings for this analysis.

Earnings included in this analysis are gross earnings, before deductions such as income tax, and include any taxable benefit in kind.

Average weekly earnings increased by 2.9% across all employments, between Q1 and Q2 2020.

Between Q1 and Q2 six economic sectors recorded a fall in average weekly earnings, while seven sectors recorded increases.

The sectors showing the largest quarterly percentage increases in average weekly pay were the Arts, entertainment, recreation and other service activities sector (14.1%) and the Accommodation and food services sector (11.6%).

The largest quarterly percentage decreases in average weekly pay were seen in the Construction sector (-6.5%) and the Financial, insurance and real estate sector (-6.3%).

Change in earnings
Industry-5.58112656636522
Construction-6.53798767967145
Wholesale & retail1.93660780732021
Transportation0.575646936545571
Accommodation & food11.6330021909421
Information & communication-4.94562475475082
Financial & real estate-6.34072940132729
Professional & technical-3.90846209853571
Admin & support service-4.2269105930953
Public admin & defence2.57208317122724
Education4.71009996552911
Health & social0.913346272405513
Arts & entertainment14.108635401436
All sectors2.87894148535184
Table 1 Percentage change in employment and earnings by sector Q1 - Q2 2020

Impact of Temporary Wage Subsidy Scheme - Q2 2020

One in four of active employments in NACE sectors B-S (25.9%) received at least one payment from the TWSS in Q2 2020. The proportion of employments supported by the TWSS in Q2 2020 varied across the sectors with the Accommodation & food services sector (61.0%) and the Construction sector (54.2%) having the highest proportions and the Public Administration and Defence sector (0.3%) having the lowest proportion.

 

Percentage of employments that received at least one payment under TWSS
Industry33.059623673845
Construction54.1970038499132
Wholesale & retail41.8758223556911
Transportation43.8199112238427
Accommodation & food61.0178333131142
Information & communication14.9172884166101
Financial & real estate15.0875878082474
Professional & technical32.3223155898774
Admin & support service22.5157391438467
Public admin & defence0.303423803340233
Education5.5063614230739
Health & social10.3865036647613
Arts & entertainment43.0235082802045
All sectors25.9209086442181

In terms of earnings, TWSS payments accounted for 8.5% of total earnings across all sectors (B-S) in Q2 2020. Again this varied by sector; in the Accommodation & food services sector TWSS payments represented 51.8% of total earnings, while in the Construction sector and the Arts, entertainment, recreation and other service activities sector the proportions were 24.2% and 24.1% respectively.

 

TWSS payments as a percentage of total earnings
Industry8.67115141874904
Construction24.198902088949
Wholesale & retail18.2985344351625
Transportation14.9268075488217
Accommodation & food51.8475385374382
Information & communication3.08331761650029
Financial & real estate3.33828576183415
Professional & technical10.2191237141446
Admin & support service10.6059200477519
Public admin & defence0.0839622363614603
Education1.87217636041079
Health & social3.83050997545085
Arts & entertainment24.110269048086
All sectors8.47354211140628
Table 2 Percentage of employments and total earnings supported by TWSS - Q2 2020

Background Notes

Earnings & Labour Costs (ELC)

The  ELC, which is being published today with Preliminary results for Q2 2020 and Final results for Q1 2020, is the official source of short-term earnings and labour cost estimates for Ireland. The ELC release is published based on data collected by the Earnings, Hours and Employment Costs Survey (EHECS). The EHECS collects data from enterprises with three or more employees in the NACE Rev 2 Industrial Sectors B–S inclusive.

Preliminary ELC estimates for Q2 2020 have been negatively impacted due to the inability of some businesses to access the data required to respond to the survey questionnaire, submit returns or accurately record the government income support measures. The sectors particularly impacted by low rates of survey response were Construction, Transportation and storage, Accommodation and food services and Administrative and support services. Caution is therefore advised in relation to the preliminary estimates published today. Please see the Technical Note on the Impact of COVID-19 on the Earnings and Labour Costs release for more information.

Labour Force Survey (LFS)

The LFS, which was published on 25 August for Q2 2020, is the official source of employment estimates for Ireland. The Central Statistics Office (CSO) are obliged to follow specific methodology for the LFS including how a person is classified as employed, unemployed or economically inactive (not in the labour force) using the ILO concepts and definitions. The ILO criteria do not fully capture the impact of COVID-19 on the labour market – see Information Note on the implications of COVID-19 on the Labour Force Survey (LFS). The Information Note highlights the challenges in the application of the ILO concepts following the introduction of the COVID-19 income support payments.

COVID-19 income support schemes

The CSO publishes detailed weekly data on the COVID-19 income support schemes – see Detailed COVID-19 Income Support and Live Register Tables. The data presented in those tables should also be considered alongside the analysis presented in this bulletin and the Earnings & Labour Costs (ELC) results for Q2 2020.

Nace Classification

NACE Rev.2 is the latest classification system for economic activities. See web link to NACE coder.

http://www.cso.ie/px/u/NACECoder/NACE Items/search nace.asp

 

For further COVID-19 related information go to the CSO COVID-19 Information Hub

Please Note: The Labour Market and Earnings Division of the CSO is compiling a list of users who have registered to be kept informed in relation to relevant announcements from the CSO relating to Labour Market and Earnings, including publication plans from the Division. If you haven't already done so you can register your email address by sending an email to labour@cso.ie asking to be included on this user list.

 

Further Information

Contact
E-mail: earnings@cso.ie
Morgan O' Donnell
(+353) 85 804 9155
Louise Egan
(+353) 21 4535951