AVERAGE WEEKLY earnings fell 3.8 per cent in the first quarter of the year compared to the same period in 2009, with much of the fall attributable to the implementation of public sector pay cuts.

Central Statistics Office figures showed paid hours and average hourly earnings both fell year on year. But while analysts said the fall in hourly earnings was a boost to the State’s competitiveness, trade unions claimed lower-paid workers were being hit hardest.

Average weekly earnings stood at €682.91 in the January-March period, down from €709.55 a year earlier. Paid hours declined by 2.2 per cent and average hourly earnings were down 1.5 per cent.

The largest decreases were in the education sector, which fell 9.1 per cent, and transportation and storage, which declined 7.3 per cent. Across the private sector, average weekly earnings were down 2.8 per cent, but public servants saw their pay dip 5.5 per cent (the pension levy is not included in the calculations).