Employment and wage levels have risen substantially since covid, says CSO

3 months ago


More people than ever are in work and wages have increased significantly five years on from the start of the covid-19 pandemic, the Central Statistics Office (CSO) has said.

In the latest in its series on the lasting impact of covid, the CSO looked at both earnings and employment as well as air travel which was impacted severely by worldwide travel restrictions.

In terms of employment, while this took a sharp hit in 2020 it then rebounded strongly, it said.

Entering 2020, the total number of people in work in Ireland was 2.4 million. However, when lockdowns took hold and businesses shut their doors, this fell to a low point of 2.2 million in the second quarter of 2020.

However, by the second quarter of 2021, employment numbers began to exceed pre-pandemic levels to a point where by the end of 2024, 2.8 million were in employment. This is the highest number since the series began in 1998.

CSO statistician Colin Hanley said: “The effects of the pandemic on employment numbers were different depending on what sector you worked in.

“The largest fall in employment occurred in the Accommodation & Food Services sector, where employment fell 38% between Q4 2019 and Q2 2020 or by 68,700 fewer people. The next largest decrease was in Administrative & Support Services (-22.3%) over the same period, or 25,000 fewer people.” 

Employment in accommodation and food services did not recover to pre-pandemic levels until the third quarter of 2023.

A key element of supporting people during covid-19 was the Government’s income supports with almost 1.5 million workers in receipt. In April 2020 alone, more than one million people received income supports.

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Turning to wages, the CSO said that in the five years to the last quarter of 2024 average hourly earnings have grown by 24.7% with growth across all sectors of the economy.

“The smallest five-year increase in average hourly earnings was in the Transportation & Storage sector (+8.5%), followed by Education (+17.8%),” statistician Louise Egan said. 

“The largest five-year increase was in the Information & Communication sector (+35.3%), followed by Administrative & Support Services (+26.5%).” 

While the data doesn’t delve into all facets of work since covid-19, industry figures have said both employers and their staff are dealing with its lasting impact.

Kevin Impey, international head of future of work strategy and solutions at consultants Lockton, said: “Already in 2025 we have seen a marked increase in calls for more in-person attendance in office-based organisations, the shift highlights growing tensions between traditional work structures and the flexible, employee-centric policies that have gained traction in recent years.

“Flexibility, work-life balance, and well-being are now core employee expectations, not perks. These trends were already emerging before the pandemic, and reversing them entirely is unlikely.” 

In terms of air travel, the figures show the sheer extent of covid-19’s impact in April 2020 with air travel a staggering 99.2% lower than it had been the previous April.

Even though restrictions substantially lifted in 2022, it wasn’t until January 2023 before a single month surpassed its pre-pandemic levels.

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