Increasing labour costs are one concern cited in a report released by Ireland’s National Competitiveness Council.

“Labour costs in Ireland have been growing marginally more quickly than in the euro area since 2014 and the wider EU-28 since the latter part of 2015”, according to the council.

The report focuses on areas where costs are out of line with other countries with the aim of keeping Ireland competitive.

“While demands for wage increases are understandable after a period of economic stagnation and wage cuts, our relative competitive position will be negatively affected if wage growth outpaces that in competitor countries”, according to the council. “We must ensure that wage growth is sustainable and thereby avoid finding ourselves in a position where wage growth outpaces productivity growth”.