The experience of recession and austerity over recent years has been widespread. The impact has been greatest on those who lost their jobs since the combined economic, fiscal, banking, property and social crisis hit Ireland - something I highlighted in a paper at the recent NERI Conference 'Responding to the Unemployment Crisis' (details are here).
Looking at just once indicator of the recession, household income, we can get an insight into the average impact of the recession on household's living standards. In the latest edition of the NERI's Quarterly Economic Facts, indicator 4.3a (p61-62) highlights the changes to average household disposable income over recent years. Disposable income measures the income a household has to spend after it has received all its incomes from employment, self-employment, investment and social transfers and after it has paid all its income taxation. Consequently, it allows us to monitor the collective impact of labour market, wage, earnings, welfare and income taxation changes on households. The data is from the CSO's Survey on Income and Living Conditions (SILC).
The indicator shows that between 2007 and 2010 average household incomes decreased from €47,988 to €43,333 (almost 10%) reflecting falls in earnings, reduced welfare payments and increases in income taxation levels. The 2010 average household disposable incomes figure (€43,333 per annum) is similar to the figure of €43,646 in 2006.
Full details in the latest edition of the NERI's Quarterly Economic Facts.