Private sector earnings lag behind public
Average earnings in the public sector continue to move further ahead of those in the private sector, according to data released by the CSO today.
The most recent earnings survey shows that public sector earnings have increased by 5.6% over the past year – industrial earnings over this period increased by 3.7%.
Commenting on the CSO data IBEC senior economist Fergal O’Brien said: “Public sector earnings are accelerating well ahead of those in the private sector.
"The very attractive benefits and remuneration packages provided by the public sector is making it difficult for private sector companies to compete for scare labour, particularly in the regions.
"The pressures of global competition mean that Irish companies simply can not afford to match the very attractive pay and pension terms provided by the sheltered public sector.”
“Very strong earnings growth coupled with the rapid rise in the number of public sector employees means that Ireland is currently building substantial pay and pension liabilities that the country will struggle to service when our economy slows.
"The ongoing Benchmarking II process must take full account of the competitiveness and economic implications of our spiralling public sector pay and pensions bill,” said Mr O’Brien.
