Irish wage growth hit 4.9% in May, according to new wage tracker analysis from hiring platform Indeed.

The Irish figure is above the Euro Area average of 4.7% but below the 7.2% rate seen in the UK.

Among EU countries tracked by Indeed, overall annual wage growth was highest in May in Germany at 6.2%.

Growth in advertised wages in Spain and the Netherlands both accelerated to 5%, while France held steady at 4.8%.

In Italy, annual wage growth slowed dramatically to just 1.6%.

The report notes that wage growth rates in the UK and euro-area countries remain below the headline rate of inflation but finds there has been some convergence in recent months as inflation has started to fall.

The analysis found that while job vacancies have gradually fallen in most countries, they are still high relative to historical levels, leading to a tight labour market overall.

"A high ratio of vacancies to unemployment, essentially when there are more jobs available than workers to fill them, increases workers' bargaining power, putting upward pressure on wages," according to Indeed.