Labour costs in Ireland rose slightly, gaining 0.4 per cent in the three-month period to September 2009, but outstripped the average rise in both the Organisation for Economic Co-operation and Development (OECD) area and the EU.
In the OECD area as a whole, the rise in unit labour costs over the three months remained static when compared to the preceding quarter, climbing 0.3 per cent.
The OECD, to which 30 of the world's developed economies belong, said this rate was lower in the major seven economies, where labour costs were up 0.2 per cent, and the euro area, which slowed from 0.7 per cent in the second quarter to 0.1 per cent in the three-month period to September. The major seven economies include the UK, US and Japan.
Rising labour costs can put pressure on producer prices, indicating that growth in average employee compensation exceeds productivity growth.
Compared to the same quarter in 2008, Ireland's labour costs were up 0.6 per cent. This was below the average rise of 1.8 per cent in the OECD area. The major seven economies saw a 1.5 per cent hike, but the largest rise was seen in the euro area, where labour costs rose 3.8 per cent in the third quarter of 2009.
In industry, labour costs fell 0.2 per cent quarter on quarter in the OECD area, 0.4 per cent in the major seven economise, and 0.1 per cent in the euro area.
Meanwhile, labour costs in market services were slightly higher in OECD area compared to the second quarter of the year, but were slightly lower across the major seven economies. The euro area remained unchanged.
The report said year-on-year growth rates across most of the OECD countries were lower in the third quarter than in the second.