Irish pay and living standards outperforms neighbouring countries

A recent report from the World Economic Forum (WEF) indicates that Ireland has outperformed the UK, Germany and France in terms of employment opportunities, pay and living standards.

The WEF’s ‘Inclusive Growth and Development’ report ranks Ireland 12th out of 30 of the world’s most advanced economies for inclusive development, ahead of Germany (13th), France (18th) and the UK (21st).

Ireland’s GDP per capita outshone many other nations, ranking fifth ($56,054) due in no small part to significant contributions to multinational businesses.

However, in terms of ‘median income’ i.e. the middle income earned out of the country’s working population, incomes actually fell in Ireland over the last 12 months, down by almost five per cent, placing Ireland 18th out of the top 30 nations overall.

Ireland also ranks fourth lowest out of the top 30 world economies for wealth inequality, whilst it ranked lowly for ‘basic services and infrastructure’, behind most of their European neighbours except Greece and Italy.

On the upside, Ireland’s tax and ‘fiscal transfers’ index remains strong, ranking second only to Belgium.

On the whole, the report adds that many of the leading world economies are failing to take advantage of big opportunities to simultaneously improve economic growth and minimise wealth inequality as the growth model and measurement tools that have influenced policymakers in recent years are due for sizeable readjustment.

Norway ranked number one in the index overall, experiencing improved living standards by 10.6 per cent in the same period. Although the Norwegian economy grew by a modest 0.5 per cent, it offered effective social protection and low wage inequality.

The WEF said in its report: “There is a high degree of social mobility, low unemployment and a large share of women participate in the labour force, helped by sound parental leave policies and affordable childcare.”

Date published 16 Jan 2017 | Last updated 16 Jan 2017