The impact of the recession has been pronounced on the domestic economy. An insight into its impact on households can be established using the latest income data from the CSO's Survey on Income and Living Conditions (SILC).
In the latest edition of the NERI's Quarterly Economic Facts, indicator 4.3a (p61-62) highlights the changes to average household disposable income over recent years. Disposable income measures the income a household has to spend after it has received all its incomes from employment, self-employment, investment and social transfers and after it has paid all its income taxation. Consequently, it allows us to monitor the collective impact of labour market, wage, earnings, welfare and income taxation changes on households.
The indicator shows that between 2004 and 2008 average household incomes increased from €38,631 to just over €49,000 (almost 27%) reflecting increases in earnings, enhanced welfare payments and decreases in income taxation levels. The recession has seen this trend reversed with average disposable household incomes falling back to 2006 levels by 2010 (the latest year CSO data is available). In 2010 average household disposable incomes were €43,333 per annum similar to the figure of €43,646 in 2006.
Full details in the latest edition of the NERI's Quarterly Economic Facts.