Income still 8%-10% below pre-crisis levels

Earlier this week a new report from the UK think-tank The Resolution Foundation  estimated that UK household incomes had finally returned to their pre-crisis levels. However, the latest data on Irish income levels tell a different story.

Using data from the CSO’s SILC survey, we can track median household incomes back to 2005 (see chart). On the basis of the latest data (for 2014 and released in late 2015) the median (middle) household gross income is 10% below its 2007 (pre-crisis) level. The data show a similar drop for median disposable incomes (after taxes and transfers). Making adjustments for household size and composition, median incomes are 8% below 2007 levels.

Even allowing for some slow growth in incomes since 2014 (via some earnings increases, job creation and taxation changes), the overall picture is of Irish incomes back at around 2006 levels.

There are more details on recent income trends in the latest edition of the NERI’s Quarterly Economic Facts, indicator 4.3a (p69-70).

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Micheál Collins