Wage growth in Ireland slowed at the end of 2023 and has dropped to 3.7% year-on-year, according to a new report from jobs site Indeed and the Central Bank of Ireland.
The research shows that the wage growth rate in Ireland is below the 3.8% recorded across the euro area and the slowest since April 2022.
It is also well below the 6.6% rate recorded in the UK.
The report found that having peaked at 5.5% year-on-year in March 2023, Irish wage growth has receded in tandem with the gradually cooling labour market and falling rates of headline inflation.
Certain job categories continue to see strong pay growth, however, including architecture, driving and information design as some employers continue to encounter hiring challenges.
“Wage growth in Ireland eased back at the end of 2023. The Indeed Wage Tracker dropped to 3.7% year-on-year in the three months to December, from 4.3% in the three months to November,” said Pawel Adrjan, Economist at Indeed.
“Skill shortages are likely to remain a feature of the labour market in 2024, supporting wage increases in some sectors despite the overall softening in labour demand,” Mr Adrjan said.
The wage report series is a collaboration between the Central Bank of Ireland and Indeed.
It looks at wage growth trends in job ads in the US, UK and six euro-area countries – France, Germany, Ireland, Italy, the Netherlands and Spain.