Dáil debates

Tuesday, 7 February 2006

3:00 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)

It is very difficult to provide evidence regarding the impact on wage levels of the increase in new European accession states' nationals working here. This is because it is not possible to conclusively isolate this impact from that of the various other factors that affect wage levels.

It is true that a significant number of EU-10 nationals have joined our labour force since accession in May 2004. We know that since May 2004 over 160,000 PPS numbers have been issued to them. Based on Revenue Commissioners data, it is estimated that about 70% of these people have employment details and therefore worked here at some stage, although many of them may have returned home in the meantime.

Preliminary indications regarding whether the participation of these EU-10 nationals has had a significant impact on overall wage levels, or on unemployment rates here, are that in overall terms it has not. Unemployment in Ireland remains at very low levels and has averaged 4.3% over the past year, the lowest in the European Union. In the year to the third quarter of 2005, employment grew by 5.1%, in other words, an additional 96,000 jobs were created, of which about 40,000 were taken up by non-nationals. In general, non-national workers appear to be filling jobs in those sectors which are experiencing strong jobs growth.

Most sectors of the economy in which a high proportion of EU-10 nationals are working are also showing fairly robust levels of earnings growth. For example, many EU nationals are working in the construction sector and the latest figures for that sector show fairly strong annual wage growth to the third quarter of 2005 of 6.8%.

I am fully committed to ensuring the employment rights of these workers are effectively enforced on the same basis as their Irish colleagues. As Deputies are aware, this issue is being discussed with the social partners at talks that began last Thursday. I assure Deputy Eamon Ryan that all efforts are being made to ensure that the State's employment legislation covers all employees and exploitation will not be tolerated.

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