DUBLIN (Reuters) - Average earnings for Irish workers fell by 1.9 percent in the three months to September from the previous quarter, the state statistics agency said on Tuesday, a sign that the improving economy is not translating into higher incomes.
The Irish government is forecasting gross domestic product growth of 4.7 percent this year, which would make it the fastest growing economy in the euro zone. The unemployment rate fell from 11.4 to 11.1 percent between June and September.
"Even with our growth levels, the level of the downturn has resulted in a lot of spare capacity in the economy, keeping wages down," said Alan McQuaid, chief economist at Merrion Stockbrokers.
"You would expect, as the recovery improves, that wages will start to pick up, but not enough to have a big impact on inflation," he said.
(Reporting by Conor Humphries; Editing by Kevin Liffey)