Ciarán Cuffe (Dún Laoghaire, Green Party)
Link to this: Individually | In context

Question 155: To ask the Minister for Enterprise, Trade and Employment if his Department has evidence of the lowering of average wage levels within certain sectors of the Irish economy due to an increase in new labour supply from new European accession state countries; and if he will make a statement on the matter. [4124/06]

Tony Killeen (Clare, Fianna Fail)
Link to this: Individually | In context

It is 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 which 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 more than 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 approximately 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 advised that up until 30 April 2006 it is open to us to restrict access to the labour market of the nationals of new member states. Thereafter, in the period to 30 April 2011, the approval of the European Commission would be necessary to impose restrictions, which would have to be justified by reference to a threat of serious disturbance to the Irish labour market.

However, in the context of our current robust employment position, I have no plans to change current policy regarding the access of EU-10 nationals to our labour market. These workers have already made a positive contribution to our economy and have participated significantly in the development of our infrastructure.