One of the notable features of the national accounts in recent quarters has been the continued stagnation of compensation of employees.
Compensation of employees reached a peak of €21 billion per quarter at the end of 2008 but since the start of 2010 it has hovered within a few hundred million of €17.7 billion, apart from Q4 2013 when it was €18.7 billion from which it quickly fell away. The most recent data is for Q2 2015 when it was €18.1 billion.
The pattern of compensation of employees seems to run counter to other indicators in the economy. From the QNHS we know that employment is growing, the ELC shows that average weekly earnings are rising and the Exchequer Returns show rising receipts from Income Tax.
The following chart shows indices of total employment and compensation of employees with both set to 100 when employment bottomed out in early 2012. To smooth out some of the volatility four-quarter moving averages are used.
The divergence during 2014 is evident. The final chart shows the source sectors for compensation of employees which, in line with the fist chart above, shows very little happening in recent years.
Shouldn’t the navy part, at least, be showing some improvement?
1 hour ago