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Labour Market Insight Bulletin

Series 9

CSO statistical release, , 11am

Supplementary Labour Market Analysis Q3 2021

Key Findings

  • Between Quarter 2 (Q2) 2021 and Quarter 3 (Q3) 2021, the number of active employments increased by 6.1%
  • The largest increases in active employments from Q2 2021 to Q3 2021 were in the Accommodation & food service sector (38.4%) and the Arts, entertainment, recreation & other service activities sector (16.1%)
  • Between Q3 2020 and Q3 2021, the number of active employments increased by 6.9%
  • The number of active employments increased in all 13 economic sectors between Q3 2020 and Q3 2021 with the largest rates of increase recorded in the Accommodation & food services sector (18.3%) and the Education sector (13.2%)
  • Average weekly earnings, including Temporary Wage Subsidy Scheme (TWSS) and Employment Wage Subsidy Scheme (EWSS) payments where applicable, decreased by 4.0% across all employments between Q2 2021 to Q3 2021
  • The sectors showing the largest quarterly percentage decrease in average weekly earnings between Q2 2021 to Q3 2021 were the Financial, insurance & real estate sector (-8.2%), the Administrative & support services sector (-7.9%) and the Professional, scientific & technical sector (-6.0%)
  • Average weekly earnings increased in all the 13 economic sectors between Q3 2020 and Q3 2021 with the largest rates of increase recorded in the Information & communication sector (11.9%) and the Construction sector (8.4%)
  • For employments that were active in both Q3 2020 and Q3 2021, average weekly earnings increased by 11%, while employments that were active in both Q2 2021 and Q3 2021 saw average weekly earnings increase by 0.7% across all sectors
  • In Q3 2021, 15.7% of active employments in NACE sectors B-S were directly supported by the EWSS
  • The proportion of employments supported by the EWSS in Q3 2021 varied across the sectors with the Accommodation & food services sector (75.6%) and the Arts, entertainment, recreation & other service activities sector (44.7%) having the highest proportions and the Public administration & defence sector (0.3%) having the lowest proportion
  • EWSS payments accounted for 4.7% of total earnings across all sectors (B-S) in Q3 2021
  • In Q3 2021, in the Accommodation & food services sector EWSS payments represented 51.6% of total earnings, while in the Arts, entertainment, recreation & other service activities sector, the Transportation & storage sector and the Construction sector the proportions were 22.7%, 10.5% and 6.0% respectively

Introduction

This bulletin is part of 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), which includes information in relation to the EWSS, as well as data provided from Revenue in relation to the TWSS. This bulletin is specifically designed to complement the standard Earnings & Labour Costs (ELC) results for Q3 2021. 

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 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 

Comparing Q2 2021 and Q3 2021, the number of active employments increased by 6.1%. The number of active employments increased in 12 of the 13 economic sectors between Q2 2021 and Q3 2021. The largest increases were recorded in the Accommodation & food service sector (38.4%) and the Arts, entertainment, recreation & other service activities sector (16.1%). See Table 1 and Figures 1 and 2.

Comparing Q3 2020 and Q3 2021, the number of active employments increased by 6.9%. A quarterly increase in active employments of 0.1% in Q4 2020 was followed by a decrease in active employments of 6.6% in Q1 2021 and increases in active employments of 7.8% and 6.1% in Q2 2021 and Q3 2021 respectively. See Table 1 and Figures 1 and 2.

The number of active employments increased in all of the 13 economic sectors between Q3 2020 and Q3 2021. The largest increases were recorded in the Accommodation & food service sector (18.3%) and the Education sector (13.2%)

Note: An active employment is one that was active at any point in the quarter, not active throughout the quarter.

Change in employment Q320 - Q321
Arts & entertainment1.5071817406703
Construction1.69551426476175
Transportation1.94679157126418
Public admin & defence2.21798272144929
Industry2.95875928013372
Financial & real estate3.30033492397521
Wholesale & retail4.94820444962385
Health & social6.4052137907985
Information and communication6.65888801454426
All sectors6.85652778400683
Professional & technical10.6501065242227
Admin & support service10.7451992166351
Education13.1568411570413
Accommodation & food18.3126600068814
Change in employment Q420 - Q121Change in employment Q121 - Q221Change in employment Q221 - Q321
Industry-2.23115261115384.012863083916312.6236875750649
Construction-7.367506353715069.69749543570145.83616084153999
Wholesale & retail-5.817606961402884.914638597835014.27090106430308
Transportation-3.001323089064792.893175074183982.00013954461939
Accommodation & food-38.491572352723551.994564991909738.4452132850192
Information & communication-2.893527847183045.118415227976983.45580881191767
Financial & real estate-1.798450068379331.108116202455833.23607819905214
Professional & technical-0.7210661533565647.331832254432884.41341433212419
Admin & support service-6.401431006870895.50699240391058.34526728788623
Public admin & defence-2.984263557115362.010253537781730.519351763584375
Education-7.1216657593903110.7530978162654-0.285327465083773
Health & social1.600027516595942.180817668131633.56344688412999
Arts & entertainment-28.372254636533434.678821199013616.1381339016374
All sectors-6.620884597379857.772259843532036.05600637427499
Table 1 Percentage change in employment by sector and quarter

Percentage change in earnings 

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 Q3 2021 was very different to the composition of the labour market in previous quarters, with significant changes in the number of employments in certain sectors across the various quarters analysed in this Bulletin. The changes in average weekly earnings in any sector may be impacted to some degree by those employments that have left/joined the sector having lower/higher average earnings than those employments that remained in the sector in quarters being analysed.

Any payments related to the Pandemic Unemployment Payment (PUP) scheme are not included in this analysis. Such payments are paid by the Department of Social Protection (DSP) 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 and EWSS 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.

Between Q2 2021 and Q3 2021, average weekly earnings decreased by 4.0% across all employments. Average weekly earnings decreased in eight of the 13 economic sectors between Q2 2021 and Q3 2021. The largest rates of decrease were recorded in the Financial, insurance & real estate sector (-8.2%), the Administrative & support services sector (-7.9%),and the Professional, scientific & technical activities sector (-6.0%). The largest increase was recorded in the Education sector (4.3%). See Table 2 and Figures 3 and 4.

Comparing Q3 2020 and Q3 2021, average weekly earnings increased by 4.5% across all employments. Quarterly increases of 8.1% in Q4 2020 and 5.2% in Q1 2021 were followed by decreases of 4.2% and 4.0% in Q2 2021 and Q3 2021 respectively.

Average weekly earnings increased in all of the 13 economic sectors between Q3 2020 and Q3 2021. The largest rates of increase were recorded in the Information & communication sector (11.9%), in the Construction sector (8.4%), the Professional, scientific & technical activities sector (7.4%) and the Arts, entertainment, recreation & other service activities sector (6.7%). See Table 2 and Figures 3 and 4

Change in earnings Q320 - Q321
Information and communication11.868797071866
Construction8.40549357606026
Professional & technical7.44740488454989
Arts & entertainment6.65210782109749
Accommodation & food6.00443556115324
Admin & support service5.51705672976974
Financial & real estate5.01700044836348
Health & social4.50751252086812
All sectors4.48914208942113
Industry4.16313407692053
Wholesale & retail3.0966122961104
Public admin & defence3.00458054389954
Transportation1.57326641972357
Education0.768981907771948
Change in earnings Q420 - Q121Change in earnings Q121 - Q221Change in earnings Q221 - Q321
Industry6.06337629301352-6.06151453545565-5.65179666696587
Construction-6.760920128106783.339558817767462.05247459683535
Wholesale & retail0.07939967617387471.14182598820838-5.21555900764415
Transportation-6.769681793196110.06682127274870720.172833686856766
Accommodation & food6.06814021474824-0.6053268765133240.334309482468198
Information & communication10.6131714363696-3.3617794682298-1.02381426863293
Financial & real estate14.494826280811-10.0418809698751-8.17263319529865
Professional & technical-7.71598190410521-1.48251416908133-6.04426604019646
Admin & support service10.5193175366779-1.66407570125041-7.9003079291763
Public admin & defence0.5766393992222120.509743589743583-1.55719052624059
Education0.314803155438703-4.457407270668734.31243237673244
Health & social1.62422647891862-0.6776123740208971.56661435752852
Arts & entertainment13.6132675997809-12.4060650395691-5.45116349694417
All sectors5.1735679449173-4.23940716493909-3.99981009803688
Table 2 Percentage change in earnings by sector and quarter

Percentage change in earnings for employments active in more than one quarter

To provide further context, and taking into consideration the compositional effect mentioned above, we have also prepared analysis of earnings for employments that were active in more than one quarter. For each set of quarters being analysed, a matched dataset was created of all employments that were active in both quarters i.e.;

  • Q3 2020 Vs Q3 2021: employments that were active in both Q3 2020 and Q3 2021
  • Q1 2020 Vs Q2 2020: employments that were active in both Q1 2020 and Q2 2020
  • Q2 2020 Vs Q3 2020: employments that were active in both Q2 2020 and Q3 2020
  • Q3 2020 Vs Q4 2020: employments that were active in both Q3 2020 and Q4 2020
  • Q4 2020 Vs Q1 2021: employments that were active in both Q4 2020 and Q1 2021
  • Q1 2021 Vs Q2 2021: employments that were active in both Q1 2021 and Q2 2021
  • Q2 2021 Vs Q3 2021: employments that were active in both Q2 2021 and Q3 2021

For employments that were active in both Q2 2021 and Q3 2021, average weekly earnings increased by 0.7%. Average weekly earnings increased in seven of the 13 economic sectors between Q2 2021 and Q3 2021. The largest rates of increase were recorded in the Accommodation & food service sector (9.1%) and the Information & communication sector (7.9%). The largest decrease was recorded in the Administrative & support services sector (-4.2%). See Table 3 and Figures 5 and 6.

For employments that were active in both Q3 2020 and Q3 2021, average weekly earnings increased by 11.0%. Average weekly earnings increased in all of the 13 economic sectors between Q3 2020 and Q3 2021. The largest rates of increase were recorded in the Information & communication sector (20.4%), the Accommodation & food services sector (19.5%), the Professional, scientific & technical activities sector (16.4%), and the Administrative & support services sector (13.8%). See Table 3 and Figures 5 and 6.

Change in earnings Q320 - Q321
Information and communication20.361691982835
Accommodation & food19.5297656744775
Professional & technical16.4196786943511
Admin & support service13.7526698298476
Arts & entertainment12.6988862370724
Construction12.2026258815188
Financial & real estate11.434168848527
All sectors10.9606422175048
Wholesale & retail10.7848574643066
Transportation10.6732945360491
Industry9.77769687105134
Education6.76603232685786
Health & social6.33901486811856
Public admin & defence5.32506058327067
Change in earnings Q420 - Q121Change in earnings Q121 - Q221Change in earnings Q221 - Q321
Industry8.81873054323781-0.733412604042805-1.44456117666073
Construction-8.851759267993596.660698299015234.87497347165524
Wholesale & retail0.1437023221683825.26130051861171-1.04799096927723
Transportation0.6409501759342855.040656930401742.83011472025505
Accommodation & food-2.633208650201896.798140937068219.10947191097271
Information & communication12.86427125973090.7216291024120257.88770928512521
Financial & real estate20.8714225441249-5.21828026201203-1.89886323087117
Professional & technical-2.421235338464515.15081421169505-2.80453491462666
Admin & support service8.649573128846381.69421753392938-4.16028113935423
Public admin & defence-0.4207051340117011.9575789774817-0.860436061741821
Education-3.034633780902431.553003110792050.514141855874795
Health & social0.7756829954510770.9906813221282732.0451155365975
Arts & entertainment0.634003850494591-0.7199815473836862.25740859283805
All sectors3.827811969562261.538965291421080.678316179835936
Table 3 Percentage change in earnings by sector and quarter for employments that were active in both quarters

Impact of Employment Wage Subsidy Scheme

In Q3 2021 15.7% of active employments were directly supported by the EWSS. The sectors with the highest proportion of employments supported by the EWSS were Accommodation & food services (75.6%), Arts, entertainment, recreation & other service activities (44.7%), Transportation & storage (26.7%) and Construction (19.0%).

Comparing Q2 2021 and Q3 2021, the proportion of employments supported by EWSS decreased from 17.2% to 15.7% across all sectors. The sector with the largest decrease was Construction where the proportion of employments supported decreased from 32.2% in Q2 2021 to 19.0% in Q3 2021.

Q4 2020Q1 2021Q2 2021Q3 2021
Industry10.2514.3111.666.58
Construction20.5735.6132.2119
Wholesale & retail13.9222.1117.6610.65
Transportation34.935.529.2726.68
Accommodation & food72.4571.2975.9375.62
Information & communication6.586.455.714.63
Financial & real estate8.27.277.546.62
Professional & technical12.9613.8711.368.39
Admin & support service15.5117.7315.912.52
Public admin & defence0.340.230.250.33
Education5.825.85.525.88
Health & social7.477.226.896.52
Arts & entertainment42.8539.3945.9344.74
All sectors16.4517.217.2115.68

In terms of earnings, EWSS payments accounted for 4.7% of total earnings across all sectors in Q3 2021. Again, this varied by sector; in the Accommodation & food services sector EWSS payments represented 51.6% of total earnings, while in the Arts, entertainment, recreation & other service activities sector, the Transportation & storage sector and the Construction sector the proportions were 22.7 %, 10.5% and 6% respectively.

Q4 2020Q1 2021Q2 2021Q3 2021
Industry2.523620514792713.512202519265142.821420454691311.84235468425011
Construction6.2713506657620413.048122869222910.56152636982185.98699985816956
Wholesale & retail4.642684304117938.309452510996866.077257325944673.99077145930931
Transportation13.114116537483512.750712679972111.543453470223110.530201777251
Accommodation & food44.748042809657449.193384420494550.18308334647951.645773612086
Information & communication1.160339758794671.117587645868010.9732090086542650.77096537915548
Financial & real estate1.778367638860711.481258452660871.5931219775941.53084300373421
Professional & technical3.041907203077533.603847412842532.860189813568062.2117528839633
Admin & support service5.72247483340926.318280581003225.607820143940374.93326113440475
Public admin & defence0.07614531848104620.0674752774764180.06015731965523130.0740657145681837
Education1.823746148868162.036526383536491.92628213957871.74069504388629
Health & social2.571882545188152.683851940569832.585344521378482.2216734575523
Arts & entertainment17.653153751609817.005711614404820.503474259192722.652843467406
All sectors4.316825843883914.894596890559274.652742223022314.7276159511143
Table 4 Percentage of employments and total earnings supported by EWSS, by quarter

Background Notes

Earnings & Labour Costs (ELC)

The ELC, which is being published today with Preliminary results for Q3 2021 and Final results for Q2 2021, 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 Q3 2021 have been negatively impacted by lower than usual response rates and the difficulties faced by enterprises in accessing and sending us the required data. The sectors particularly impacted by low rates of survey response were Construction, Transportation & storage and Accommodation & food services sectors. Caution is therefore advised in relation to the preliminary estimates published today. Please see the Technical Note – Impact of COVID-19 on the Earnings and Labour Costs release - updated Quarter 3 2021 for more information.

There are methodological differences in the calculation of weekly earnings between the ELC release and the Labour Market Insight Bulletin Series.

The ELC is based on survey data which collects aggregated information from enterprises and presents information separately in relation to both earnings (wages and salaries) and other labour costs (other costs to the employer, in addition to wages and salaries, of employing labour which includes social contributions, expenses, subsidies, benefits in kind). The analysis included in this Bulletin is based on Revenue’s employee level tax data and data provided by Revenue in relation to the TWSS. Earnings estimates provided in this Bulletin include earnings and taxable benefits in kind.

In the ELC average weekly earnings are calculated by dividing the total earnings for the quarter by the average number of persons employed during the quarter and then dividing that by 13 (the number of weeks in a quarter). Average weekly earnings in this Bulletin are calculated by summing the total payments received by an employee in a quarter and dividing by the number of insurable weeks worked by the employee in that quarter.

Labour Force Survey (LFS)

The LFS, which was published on 25 November for Q3 2021, is the official source of employment estimates for Ireland. The Central Statistics Office (CSO) is 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 International Labour Organization concepts and definitions. The International Labour Organization 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.

Temporary Wage Subsidy Scheme

Revenue’s Temporary Wage Subsidy Scheme (TWSS) enabled employees, whose employers were affected by the COVID-19 pandemic, to receive supports directly from their employer through the payroll system. The scheme operated in two phases, a transitional phase from 26 March to 3 May and an operational phase from 4 May to 31 August 2020.

Employment Wage Subsidy Scheme

Revenue’s Employment Wage Subsidy Scheme (EWSS) replaced the TWSS and became operational from 1 September 2020. The EWSS is an economy-wide enterprise support that focuses primarily on business eligibility. The scheme provides a flat-rate subsidy to qualifying employers based on the numbers of eligible employees on the employer’s payroll and gross pay to employees.

COVID-19 income support schemes

The CSO has been working with and will continue to collaborate with both the Department of Social Protection (DSP) and the Revenue Commissioners to meet user needs for availability of detailed aggregates for the recipients of the PUP, TWSS and EWSS. Tables providing breakdowns of the numbers benefitting from the PUP, EWSS, TWSS and the numbers of persons on the Live Register for each week since March 2020 by sex, age group, county and nationality grouping are available at the following link: PxStat. This link also contains tables for the corresponding numbers included on the Live Register for each week as well as a total number of persons with overlaps removed who are either on the Live Register for each week or who were benefitting from either the PUP, the TWSS or the EWSS. An overlap table excluding the Live Register is also available. For further information on updates please see Detailed COVID-19 Income Support and Live Register Tables.

The final update to the number of persons benefitting from the TWSS is included in the PxStat tables linked above. No further TWSS updates will be provided given that the TWSS scheme is now closed. 

NACE Classification

NACE Rev.2 is the latest classification system for economic activities. See NaceCoder.

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