The labour market is tightening in pay and employment terms in the Republic of Ireland against a back drop of steady – if declining growth.
The report, however, finds little firm evidence to suggest that “over-heating” is currently an issue, particularly in light of relatively average labour market performance along many indicators in an EU context. Similarly, while wages and labour costs have been increasing, this varies significantly by sector and occupational type. There remains significant prospects for wage growth into the future given declining labour share suggesting a medium term target of 3.5% or more annually.