Incidence of low paid work in Ireland higher than expected

About a third of workers in the Republic aged 16 to 34 earn less than €20,000 a year, which is less than half the average full-time salary, according to a new study. The finding, part of the UCD-backed Working in Ireland survey series, was presented at a conference hosted by the trade union-backed Nevin Economic Research Institute (NERI) in UCD on Tuesday. The study noted, by way of comparison, that the gross earnings of a minimum wage worker working 39 hours a week, 52 weeks a year was €20,482.

The share of those working on low pay in the older age groups was significantly less, the research found. Among those aged 35 to 44, it fell to 19 per cent; in the 45-54 group it was 18 per cent; while in the over 55 age group it was 23 per cent. The finding “confirms the continued proliferation of low pay amongst young workers marking Ireland as an outlier in a European context”, it said.

As the 16-34 age cohort was likely to contain at least some young people working through college or part-time, the study measured the incidence of low paid work solely among full-time workers, which was found to be more than 20 per cent, still elevated in EU terms. There was markedly fewer in this low pay group in the next age cohort (35-44), where low paid work accounted for just 13 per cent and just 9 per cent in the 45-54 age group, it said.

Amid growing concern of the rising incidence of precarious work, the study found that one in three young workers aged under 25 in the Republic works on a temporary basis. However, there was also a relatively high incidence of temporary work among the next age group, those aged 25 to 34, including among recent graduates.

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The survey also found that young workers were less confident than their older counterparts about their ability to secure a new job with almost half of young workers saying they are worried about their ability to find a new job.

“Temporary employment can be a stepping stone for young workers, allowing them the flexibility to explore their options; however, it is also associated with greater insecurity and significant labour market disadvantage,” it said. “This is particularly the case when temporary employment is combined with other characteristics of precariousness such as low pay, low job security and a weak regulatory environment,” it said.