You have more money in your pocket but why doesn’t it feel like it?
Smart Money : As salaries increase, who is cashing in and why are many missing the feelgood factor
We’ve never had it so good?
The recovery in the Irish jobs market since the crash has been extraordinary. First job numbers picked up in some sectors, then across the board and now earnings are finally rising too. But who are the big winners – and why are many, even on reasonable earnings, still juggling to pay all the bills? To understand that, we need to stand back and look at exactly what is going on and put the key numbers in context.
1. The key numbers
Earnings were essentially stuck and hardly moved for a prolonged period, even as the economy recovered. So upward earnings momentum has been a recent phenomenon. The jobs market turned in 2013, but while earnings started to edge up in 2015 , it was late 2017 before any significant upward move was evident – a low-inflation environment and plenty of slack in the jobs market in the wake of the crisis helped hold down earnings in the early period of the recovery. Many employers, notably the State itself, also took time to regain any kind of financial equilibrium.