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Business in Ireland 2021 – Detailed Results

Business Costs in Ireland

Services sector accounted for more than half of all wages & salaries paid in Ireland's non-financial business economy in 2021

Online ISSN: 2009-6895

CSO statistical publication, 30 January 2024, 11am

Personnel costs¹ are defined as the total remuneration, in cash or in kind, payable by an employer to an employee.

Personnel costs are made up of:

wages and salaries
employers' social security costs

Social security costs for the employer include employer's contributions to the PRSI scheme, superannuation funds, PRSAs, and other pension schemes. Also included are insurance premiums, employer’s liability insurance, and private health premiums paid on behalf of employees.

¹See Background Notes for full definition.

Breakdown of Personnel Costs

In 2021, the average wage per person employed was €35,633, ranging from €30,400 in SMEs to €47,388 in large enterprises. Persons employed in the Manufacturing sector enjoyed the highest sectoral wage in Ireland in 2021 at €49,282 per person employed. In contrast, persons employed in the Construction sector had the lowest wage at €29,622 per person employed.

	SMEs (<250 persons employed)	Large (250+ persons employed)	All enterprises
Manufacturing	43352	55126	49282
Construction	26643	60288	29622
Distribution	30148	33736	31234
Services	29184	48707	35043
Total	30400	47388	35633

Wages & salaries accounted for 90.5% of personnel costs for the combined business sectors Manufacturing, Construction, Distribution, and Services in 2021. Social security costs accounted for 10.5% of SMEs (<250 persons employed) total personnel costs, compared with 8.1% for large enterprises (250+ persons employed).

	Social security costs	Wages & salaries
SMEs (<250 persons employed)	10.5	89.5
Large (250+ persons employed)	8.1	91.9
Total	9.5	90.5

In 2021, the Services sector accounted for more than half (56.7%) of all wages & salaries paid in Ireland's business economy. Ireland's Manufacturing and Distribution sectors accounted for 18.0% and 17.8% respectively. The Construction sector's share of total wages & salaries paid in Ireland in 2021 was 7.5%.

For long labels below use to display on multiple lines	Wages and salaries
Manufacturing	18
Construction	7.5
Distribution	17.8
Services	56.7

Table 4.1 Breakdown of personnel costs by selected sector and size class, 2021

Total Purchases by Selected Sector

In 2021, the Services sector had the largest share of total purchases (39.3%), followed by Manufacturing (34.3%), Distribution (22.6%), and Construction (3.9%). Total purchases amounted to €682.9 billion in 2021, of which large enterprises accounted for 59.2% (€404.6bn).

For long labels below use to display on multiple lines	Total purchases
Manufacturing	34.3
Construction	3.9
Distribution	22.6
Services	39.3

Table 4.2 Total purchases by selected sector and size class, 2021

Total Business Costs by Selected Sector

In 2021, enterprises in the Services sector accounted for the largest proportion of total costs at 40.9% (€311.2bn), followed by Manufacturing enterprises 32.9% (€250.5bn), while the Distribution and Construction sectors combined accounted for 26.2%. Large enterprises accounted for 57.2% of all business costs, while SMEs accounted for the remaining 42.8%.

	SMEs (<250 persons employed)	Large (250+ persons employed)	All enterprises
Manufacturing	47764	202716	250480
Construction	26346	5529	31875
Distribution	129276	38331	167607
Services	325685	435444	761129

Table 4.3 Total business costs by selected sector and size class, 2021

Table 4.3(a) Breakdown of business costs in Manufacturing by size class, 2021

Table 4.3(b) Breakdown of business costs in Construction by size class, 2021

Table 4.3(c) Breakdown of business costs in Distribution by size class, 2021

Table 4.3(d) Breakdown of business costs in Services by size class, 2021

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Table 4.1 Breakdown of personnel costs by selected sector¹ and size class, 2021
	Personnel costs	Wages & salaries	Social security costs	Social security costs as a % of personnel costs	Wages & salaries per person employed
Sector and size class	€m	€m	€m	%	€
Manufacturing	14,063	12,102	1,961	13.9	49,282
SMEs (<250) persons employed	6,741	5,283	1,457	21.6	43,352
Large (250+) persons employed	7,322	6,818	504	6.9	55,126
Construction	5,550	5,049	501	9.0	29,622
SMEs (<250) persons employed	4,537	4,139	398	8.8	26,643
Large (250+) persons employed	1,012	910	103	10.1	60,288
Distribution	13,079	11,963	1,116	8.5	31,234
SMEs (<250) persons employed	8,784	8,052	732	8.3	30,148
Large (250+) persons employed	4,295	3,911	384	8.9	33,736
Services	41,701	38,188	3,513	8.4	35,043
SMEs (<250) persons employed	24,329	22,259	2,070	8.5	29,184
Large (250+) persons employed	17,372	15,929	1,443	8.3	48,707
Total	74,394	67,302	7,091	9.5	35,633
SMEs (<250) persons employed	44,391	39,734	4,657	10.5	30,400
Large (250+) persons employed	30,003	27,569	2,434	8.1	47,388
*Source:* CSO Structural Business Surveys
¹Selected sectors excludes non-manufacturing industries (NACE Rev.2 B, D, and E) and Financial and insurance activities (NACE Rev.2 K).

Table 4.2 Total purchases by selected sector¹ and size class, 2021
	Total purchases	Percentage of total
Sector and size class	€m	%
Manufacturing	234,192	34.3
SMEs (<250 persons employed)	38,903	5.7
Large (250+ persons employed)	195,290	28.6
Construction	26,325	3.9
SMEs (<250 persons employed)	21,809	3.2
Large (250+ persons employed)	4,516	0.7
Distribution	154,137	22.6
SMEs (<250 persons employed)	120,235	17.6
Large (250+ persons employed)	33,901	5.0
Services	268,278	39.3
SMEs (<250 persons employed)	97,392	14.3
Large (250+ persons employed)	170,886	25.0
Total	682,932	100.0
SMEs (<250 persons employed)	278,339	40.8
Large (250+ persons employed)	404,593	59.2
*Source:* CSO Structural Business Surveys
¹Selected sectors excludes non-manufacturing industries (NACE Rev.2 B, D, and E) and Financial and insurance activities (NACE Rev.2 K).

Table 4.3 Total business costs by selected sector¹ and size class, 2021
	Manufacturing		Construction		Distribution		Services		Total
	€m	%	€m	%	€m	%	€m	%	€m	%
Purchases
of which: SMEs (<250 persons employed)	38,903	16.6	21,809	82.8	120,235	78.0	97,392	36.3	278,339	40.8
Large (250+ persons employed)	195,290	83.4	4,516	17.2	33,901	22.0	170,886	63.7	404,593	59.2
Purchases total	234,192	100.0	26,325	100.0	154,137	100.0	268,278	100.0	682,932	100.0
Other costs
of which: SMEs (<250 persons employed)	8,861	54.4	4,537	81.7	9,041	67.1	24,907	58.1	47,346	60.5
Large (250+ persons employed)	7,426	45.6	1,012	18.2	4,430	32.9	17,982	41.9	30,850	39.5
Other costs total	16,288	100.0	5,550	99.9	13,470	100.0	42,889	100.0	78,197	100.0
Purchases + Other costs
of which: SMEs (<250 persons employed)	47,764	19.1	26,346	82.7	129,276	77.1	122,299	39.3	325,685	42.8
Large (250+ persons employed)	202,716	80.9	5,529	17.3	38,331	22.9	188,868	60.7	435,444	57.2
Total costs (purchases + other costs)	250,480	100.0	31,875	100.0	167,607	100.0	311,167	100.0	761,129	100.0
*Source:* CSO Structural Business Surveys
¹Selected sectors excludes non-manufacturing industries (NACE Rev.2 B, D, and E) and Financial and insurance activities (NACE Rev.2 K).

Table 4.3(a) Breakdown of business costs in Manufacturing by size class, 2021
	SMEs (<250 persons employed)		Large (250+ persons employed)		Total¹
	€m	%	€m	%	€m	%
Purchases
Materials acquired	24,000	50.2	33,147	16.4	57,147	22.8
Fuel & energy	861	1.8	857	0.4	1,718	0.7
Goods for resale without further processing	5,855	12.3	91,299	45.0	97,154	38.8
Industrial services supplied by others	1,696	3.6	9,760	4.8	11,456	4.6
Non-industrial services	423	0.9	4,860	2.4	5,283	2.1
R&D services supplied to the enterprise	1,159	2.4	13,378	6.6	14,537	5.8
Royalties paid	1,485	3.1	27,760	13.7	29,245	11.7
Management & marketing fees	2,343	4.9	12,072	6.0	14,415	5.8
Agency costs	77	0.2	163	0.1	241	0.1
Other expenses	1,004	2.1	1,993	1.0	2,998	1.2
Purchases total	38,903	81.5	195,290	96.4	234,192	94.0
Other costs
Wages & salaries	5,283	11.1	6,818	3.4	12,102	4.8
Other labour costs	1,457	3.1	504	0.2	1,961	0.8
Excise duty and other indirect taxes	2,121	4.4	104	0.1	2,225	0.9
Other costs total	8,861	18.6	7,426	3.7	16,288	6.0
Total costs (purchases + other costs)	47,764	100.0	202,716	100.0	250,480	100.0
*Source:* CSO Structural Business Surveys
¹Totals may differ due to rounding.

Table 4.3(b) Breakdown of business costs in Construction by size class, 2021
	SMEs (<250 persons employed)		Large (250+ persons employed)		Total¹
	€m	%	€m	%	€m	%
Purchases
Materials acquired	8,495	32.2	1,536	27.8	10,032	31.5
Fuel & energy	414	1.6	47	0.9	461	1.4
Goods for resale without further processing	108	0.4	36	0.7	144	0.5
Industrial services supplied by others	108	0.4	23	0.4	130	0.4
Hire of equipment	145	0.6	241	4.4	386	1.2
Commercial rent	40	0.2	10	0.2	50	0.2
Insurance costs	91	0.3	18	0.3	109	0.3
Banking costs	6	0.0	1	0.0	7	0.0
Agency costs	283	1.1	34	0.6	317	1.0
Subcontractors	11,040	41.9	2,371	42.9	13,411	42.1
Other expenses	1,080	4.1	200	3.6	1,280	4.0
Purchases total	21,809	82.8	4,516	81.7	26,325	82.6
Other costs
Wages & salaries	4,139	15.7	910	16.5	5,049	15.8
Other labour costs	398	1.5	103	1.9	501	1.6
Other costs total	4,537	17.2	1,012	18.3	5,550	17.4
Total costs (purchases + other costs)	26,346	100.0	5,529	100.0	31,875	100.0
*Source:* CSO Structural Business Surveys
¹Totals may differ due to rounding.

Business in Ireland 2021 – Detailed Results

Business Costs in Ireland

Business Costs in Ireland

Services sector accounted for more than half of all wages & salaries paid in Ireland's non-financial business economy in 2021

Breakdown of Personnel Costs

Total Purchases by Selected Sector

Total Business Costs by Selected Sector

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