Irish Economy Star Performer – The Irish Times
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Ireland’s Labor Market: Rising hours for Some, Declining for Most
Table of Contents
Conflicting data reveals a complex picture of working hours in Ireland, with a meaningful increase reported by the CSO alongside a general decline observed by the Department of Finance.
The Contradictory Data
Recent reports paint a confusing picture of working hours in Ireland. The Central Statistics Office (CSO) highlighted a cumulative rise to 88.9 hours worked per week in the second quarter of the year. However, a separate report from the Department of Finance indicates that, on average, workers are working two hours less per week than before the COVID-19 pandemic.
Flexible Work and Hours Worked
The Department of Finance report found that the decrease in working hours was more pronounced among employees with flexible work arrangements compared to those in office- or site-based roles. Though, the decline in average hours was also observed among on-site workers and across almost all sectors of the economy.This suggests that flexible working isn’t the sole driver of the overall reduction in hours.
The Department of finance report also noted a broader economic trend: average hours worked tend to decrease as a country becomes wealthier. This suggests that Ireland’s declining hours may be a sign of economic progress and a shift towards prioritizing leisure and work-life balance.
Ancient Context: GDP vs. Employment
The focus on employment as a key economic indicator stems from concerns about the reliability of Gross Domestic Product (GDP) as a measure of economic well-being. Former Central bank governor Patrick Honohan frequently advocated for viewing the Irish economy through the lens of employment, particularly during and after the 2008 financial crisis, when unemployment peaked at nearly 16 percent. Irish Times
Reconciling the Discrepancies
The difference between the CSO and Department of Finance figures likely arises from differing methodologies and data sources. the CSO data, focusing on total hours worked, may be skewed by a small number of individuals working exceptionally long hours – possibly in high-growth sectors like technology or finance. The Department of Finance report, based on average hours per worker, provides a broader view of the typical worker’s experience.
Further inquiry is needed to understand the composition of the workforce contributing to the CSO figures. Are these long hours concentrated in specific industries or demographic groups? Understanding this distribution is crucial for interpreting the overall trend.