Oireachtas Joint and Select Committees

Tuesday, 4 October 2016

Committee on Budgetary Oversight

Forecasts for Budget 2017: Department of Finance

11:00 am

Mr. John McCarthy:

I will respond to the Deputy's last question first and then Ms Weymes might handle some of the questions on the labour market.

With regard to chart 32, in producing the national accounts we show the expenditure side, which entails consumption, investment, exports and so forth, and also the matching on the income side. Being in employment generates income for people. It generates employment for the self-employed and so forth. There are various transfers and so forth. These figures are published in the detailed national accounts every year. The chart contains our forecasts. The beige or brown bar shows a 5% increase in labour income in 2016. It shows what the Deputy and I, for example, earn from being employed. It is a composition of increases in employment, increases in the number of hours worked and increases in hourly pay. I refer to labour income, which makes up the bulk of household disposable income. Capital income is essentially the income of the self-employed in addition to some dividends from company owners and so forth.

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