Michael Ferris
Question:33 Mr. Ferris asked the Minister for Finance the most recent figures available for wage inflation; and if he will make a statement on the matter. [13849/99]
Written Answers. - Wage Inflation Rate.
Pay movements are recorded by the Central Statistics Office in its quarterly statistical releases on earnings. The CSO produces data on industry, construction, banking, insurance and building societies and the public sector, excluding health. The table below sets out the average weekly increases in each sector in the year to September 1998 – the latest date in respect of which figures are generally available for the various sectors.
|
% Increase in the year to September 1999 |
Average weekly rate in September 1998 |
|
|
Industrial Earnings |
% |
£ |
|
Industrial Workers |
5.1 |
300.55 |
|
Clerical and Managerial Workers |
3.3 |
456.56 |
|
All Employees |
4.9 |
345.45 |
|
Construction Industry |
||
|
Skilled Operatives |
12.3 |
424.51 |
|
Unskilled Operatives |
3.8 |
317.59 |
|
Total Clerical and Operatives |
6.3 |
347.96 |
|
Banking Insurance & Building Societies(Total) |
4.2 |
423.15 |
|
Public Sector (excluding health)(Total) |
4.7 |
442.71 |
The CSO data indicate that average weekly earnings of industrial workers increased by 5.1 per cent in the year to September 1998. The increase in average hourly earnings was 5.8 per cent over the same period.
Average weekly earnings in the banking, insurance and building societies sector increased by 4.2 per cent in the year to September 1998.
In the construction sector average weekly earnings increased by 6.3 per cent in the year to September 1998 – the hourly rate increased by 7.9 per cent while the number of hours worked decreased by 1.7 per cent. Skilled operatives saw their weekly earnings increase by 12.3 per cent in the year to September 1998 reflecting an increase of 10.3 per cent in the hourly rate and an increase of 1.8 per cent in the average number of hours worked.
Average weekly earnings of unskilled workers increased by 3.8 per cent over the same period with the hourly rate increasing by 5.7 per cent and the hours worked decreasing by 1.7 per cent.
In the public sector average annual weekly earnings increased by 4.7 per cent in the year to September 1998.
The Department of Finance has estimated that in the economy generally private sector wages increased by 5.5 per cent in 1998 when carryover from previous year's wage increases, and other elements are included.
As we can see from the figures above some pressures are emerging in certain sectors, possibly reflecting sectoral labour shortages in some instances. The Government has increased substantially its investment in high-tech education and training to help ease skill shortages. At the less skilled end of the market catering and retailing are also experiencing labour shortages. A key priority for the Government, in its taxation and other policies, is to further encourage and assist the long-term unemployed to avail of the employment opportunities now available and to bring about a much greater match between the potential supply of labour and the demand which is evident in the marketplace. The recently announced FÁS initiative to actively encourage inward migration in the order of 10,000 should also help to alleviate labour and skills shortages. Increasing both skilled and unskilled labour supply should help to dampen wage pressures.