Irish News Irish Wages Rise by 5.6% as Inflation Concerns Persist

New data from the Central Statistics Office (CSO) shows that average weekly earnings in Ireland increased by 5.6% on an annual basis in the final quarter of 2024, while average hourly earnings rose by 6.2%.

The rise in wages comes amid growing concerns that higher wage demands—particularly in the services sector—are contributing to inflationary pressures in the economy.

Wage Growth and Inflationary Pressures​

Despite European Central Bank (ECB) policymakers expressing concerns about the impact of wage growth on inflation, the ECB is still expected to cut interest rates by 0.25 percentage points next month.

Breakdown of Earnings Growth​

The CSO’s latest labour cost data reveals:

• Average weekly earnings rose to €979.71 in the final quarter of 2024, up from €927.98 in the same period in 2023 (5.6% increase).
• Average hourly earnings climbed to €30.21, up from €28.44 in Q4 2023 (6.2% increase).
• Wage increases were recorded across all 13 sectors of the economy.

Outlook for Wage Growth and Interest Rates​

As wages continue to rise, the ECB faces pressure to balance inflation control with economic growth. While the upcoming interest rate cut is expected to ease borrowing costs, policymakers remain cautious about wage-driven inflation in Ireland and across the Eurozone.