Source: CSO

The CSO said today that average weekly earnings in the Irish Public Sector (excluding Health) rose by 3.2% in the year to June 2009 from €942.81 to €973.09.  Since the peak period of employment in Q2 2008, employment has fallen 2,700 or 0.8% compared with a plunge of 209,000, or 11.7%, in the rest of the economy.

This compares to a rise of 3.2% in the year to March 2008. Weekly earnings for the Civil Service rose by 4.7% (from €889.82 to €931.46) and for the Defence sector by 4.3% (from €799.65 to €834.06). Average weekly earnings for An Garda Síochána, inclusive of overtime, fell by 3.1% from €1,247.74 to €1,208.50 per week. However, their weekly earnings excluding overtime rose by 0.6% from €1,093.16 to €1,099.25 for the same period.

Over the four year period from June 2005 to June 2009, average weekly earnings in the Public Sector (excluding Health) rose by 16.1% from €838.35 to €973.09. Regional Bodies’ earnings rose by 19.2% (from €720.92 to €859.70) and Semi State by 17.8% (from €898.01 to €1,058.26), while the earnings for An Garda Síochána, inclusive of overtime, rose by 11.6%. Earnings for sectors within Education rose by around 13% in this period with the exception of Third Level which rose by 22.8% from €918.27 to €1,127.68 per week.

Employment down by 2,700 in year to June 2009

A total of 370,400 people were employed in the Public Sector in June 2009 compared to 373,100 in June 2008, a decrease of 2,700. This compares to a rise of 3,500 in the year to March 2009. In the year to June 2009 employment in Regional Bodies fell from 41,200 to 37,700 (a decrease of 3,500). In the same period there were 900 fewer people employed in the Civil Service where numbers dropped to 38,600 in June 2009.

Employment in the Education Sector increased from 101,600 in June 2008 to 103,800 in June 2009, a rise of 2,200. Employment in the Health Sector rose by 600 from 110,500 in June 2008 to 111,100 over the same period.

In the four years to June 2009, employment in the Public Sector rose by 21,500 to 370,400. Employment in the Education Sector increased from 90,500 to 103,800, an increase of 13,300. Employment in An Garda Síochána for the same period rose by 2,300 from 12,200 to 14,500, reflecting the level of recruitment to that body. Employment in the Health Sector increased from 100,900 to 111,100, and increase of 10,200. From June 2005 to June 2009 employment in the Semi-State Sector fell from 57,600 to 52,900, a decrease of 4,700. This is due in part to the privatisation of some companies e.g. Aer Lingus

The distribution of employment within the Total Public Sector has altered little between June 2005 and June 2009. The largest sector is the Health Sector at 30% of all employment. The Education Sector currently makes up 28% of the total employment in the Public Sector, compared with 26% in June 2005. The Semi-State Sector, Civil Service and Regional Bodies constitute 14%, 11% and 10% respectively of all employment in June 2009, but stood at 17%, 11% and 11% respectively in June 2005. The Defence Forces continues to make up 3% of total employment in the Public Sector while An Garda Síochána rose from 3% of all employment in June 2005 to 4% in June 2009.

Davy chief economist Rossa White commented:

Public sector weekly earnings up 3.2% in year to Q2

• Weekly earnings of public servants rose 3.2% in the 12 months to Q2. That was exactly the same rate of annual growth as was recorded in Q1 and in Q4.

• It meant that average weekly earnings in the public sector reached €973 or €50,600 annualised. Weekly wage data are as of yet unavailable for the rest of the economy. The CSO will soon contribute to the euro wide survey of average hourly earnings for the first time: that is due by the end of November for Q2. In the absence of those data, we estimate that average weekly wages were €772 or €40,100 annualised in the rest of the economy in Q4 2008 (the last period for which sectoral wage surveys are available).

• Wage inflation was highest in the civil service at 4.6%. It was lowest in semi-state companies at 2%.

Public sector wage premium minimum of 19%

• The CSO recently analysed the last National Employment Survey (2007). It calculated that the public sector wage premium was 19.1% when differences in individual and employment characteristics were controlled for.

• But it didn't take account of the far more generous pension regime (defined benefit versus defined contribution) or the premium for job security.

Employment is up, bar regional bodies and semi-states

• Public sector employment has dropped slightly compared with savage job losses in the private sector. Since the peak in Q2 2008, employment has slipped 2,700 or 0.8%. That compares with a decline of 209,000, or 11.7%, in the rest of the economy.

• But all of the net payroll loss and more is accounted for by regional bodies and semi-state companies. Regional bodies and semi-states have seen employment drop by 4,400, but numbers increased 1,700 year-on-year in the rest of the public sector.