tag:blogger.com,1999:blog-8817171247555815363.post3892742885367734148..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: 13/5/2012: Sunday Times 06/05/2012: Irish labour costs competitivenessTrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8817171247555815363.post-13820816200257484102012-11-13T12:16:12.930+00:002012-11-13T12:16:12.930+00:00I agree. private sector adjustments relative to se...I agree. private sector adjustments relative to seniority were also to lay off younger workers in many sectors. The reason for this was not so much differential productivity, but the structure of the redundancy. This was amplified with the cuts to the redundancy payments rebates. I wrote about this as well on a number of occasions.TrueEconomicshttps://www.blogger.com/profile/07350536454228478974noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-83444679820693951542012-11-13T11:49:48.916+00:002012-11-13T11:49:48.916+00:00"The latter aspect is worth explaining. In th..."The latter aspect is worth explaining. In the early part of the crisis, all public sector employment reductions took place out of cuts to part-time and contract positions, thus most heavily impacting lower earning younger workers. This would simultaneously increase the proportion of higher paid public employees and the average productivity in the sector. Post-2009, cost reductions have been running via early retirement schemes, but these are not reflected in the 2009 data."<br /><br />Hi Dr Gurdiev<br />Although i think you are close I think you are not quite hitting the nail on the head with regard to the reasons for the increase in Labour costs over the time.<br /><br />I have done a little work on examining employment rates and emigration of people in their 20's from 2007 to 2011.<br /><br />Of the 300,000 jobs lost in the economy over that time the group that fared worst by a long way was the young.<br />There were 227,000 less people in their 20's working in the economy in 2011 than 2007.<br />You mention above the public sector but actually and surprisingly to me the same behavior happened to a much greater extent in the private sector. Employers kept their older more "valuable" more expensive employees and got rid of their younger employees.eamonn morannoreply@blogger.com