IT workers skip recession as wages jump 10% since 2009

IT workers in Ireland enjoyed a significant jump in earnings during the recession when wages in most other sectors of the economy were being cut.

New figures from the Central Statistics Office (CSO) show average annual earnings in the Information and Technology (ICT) sector rose by 10 per cent from €48,261 to €53,067 between 2009 and 2013.

During the same period, incomes in the healthcare and social work sector fell by 9.7 per cent from €39, 589 to €35,763, while earnings in the education sector dropped by 7.9 per cent from €46,216 to €42,554.

The figures also indicate wages in the hard-hit construction sector fell 7.2 per cent from €39,035 to €36,230 during the five-year period, while earnings in the accommodation and food services industry, which includes a high number of part-time staff, fell by 8.6 per cent from €17,649 to €16,128.

The CSO’s annual earnings and labour costs report provides a snapshot of income trends in the Irish economy during the height of the recession.

Overall, the figures show average annual earnings in the economy fell to €35,830 last year from €36,079 in 2012, a decrease of 0.7 per cent or €249.

Though the fall is only slight, the earnings figures compiled by the CSO are gross amounts calculated before deductions for PRSI, tax and other levies, including the property tax, kick in.

Nonetheless, the figure show average earnings last year rose in seven of the 13 sectors covered in the report.

The largest percentage increase was in the arts, entertainment and recreation sector, which saw wages rise by 4.5 per cent from €24,071 to €25,158.

The largest sectoral decline was recorded in the health and social work industry where values fell from €36,737 to €35,763, representing a decline of 2.7 per cent.

Total annual earnings rose by 1.4 per cent to €56.1 billion last year, reflecting the fact that more people were at work in the economy.

The figures also indicate average labour costs, a key measure of the State’s competitiveness, rose in seven of the 13 economic sectors last year.

This metric collates average earnings as well as other costs to employers, like PRSI.

The biggest rise was recorded in the ICT sector where costs to employers jumped 6.8 per cent from €62,946 to €67,208 in the year.

By contrast, the healthcare and social work sector experienced a 2.8 per cent decrease in its average annual total labour costs, falling from €40,525 to €39,410.

Taking a more long-term snapshot, average annual labour costs fell in eight of the 13 sectors during the five-year period between 2009 and 2013.

The greatest decrease was seen in the construction sector where labour costs fell by 11.9 per cent from €46,267 to €40,756, and in the accommodation and food services sector; and in the healthcare sector, which both fell by 10.6 per cent respectively.

Over the period, average total labour costs in the ICT sector increased 14.7 per cent from €58,594 to €67,208.

In the four years to 2013, total annual labour costs, essentially the State’s total wage bill, decreased by €4 billion or 5.8 per cent.