Infographic from the Enterprise Ireland end-of-year statement 2015

Job creation in 2015 – EI and IDA end-of-year statements

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Both Enterprise Ireland (the state agency charged with supporting exporting indigenous enterprises) and the IDA (the state agency responsible for supporting Foreign Direct Investment) issued very upbeat end-of-year statements this week. So, how did the region’s fare?

Enterprise Ireland

In 2015 total employment in EI client companies was 192,223, of which 165,630 were full-time jobs. 2015 saw the highest level of new jobs created by EI supported companies in the agency’s history (about 17 years) with 21,118 new jobs created. Taking into account job losses over the year, the net increase was about half this at 10,169 net new jobs.

Of this net increase in EI client jobs, 64% occurred outside of Dublin. It is notable that the regional performance got considerably greater focus in this year’s end-of-year statement Press Release than has been the case for the past number of years. The evident dissatisfaction in many regional locations caused by a two-speed jobs recovery, which led to the preparation of the regional Action Plans for Jobs and several other regional EI initiatives last year, has led to greater emphasis on regional performance in this year’s end-of-year statement. As indeed has the fact that that performance has been quite strong.

While the overall regional picture may be quite strong, the relative performance across the various regions differs (Fig. 1). The increase in jobs in EI client companies in 2015, compared with 2014, varied from +36% in Dublin to just +2% in the North West. Indeed the North West, Mid-West and West – the three EI regions covering the Western Region – had the lowest increases in job numbers across the country at +2%, +3% and +5% respectively. Sticking with the two-speed jobs recovery metaphor, the Western Region appears to be running at the lowest speed of all, at least in the context of indigenous exporting companies.

Infographic from the Enterprise Ireland end-of-year statement 2015

Fig. 1: Infographic from the Enterprise Ireland end-of-year statement 2015 https://enterprise-ireland.com/en/News/PressReleases/2016-Press-Releases/End-of-Year-Statement-2015.PDF

A previous WDC Insights Blog post highlighted the particular issue of the North West’s poor performance in terms of all types of agency assisted employment (EI, IDA and Udarás). Between 2005 and 2014 the North West experienced the largest decline in agency assisted jobs of any region in Ireland. And now in 2015 it’s the region with the lowest increase in EI supported jobs. This points to a very real concern for the North West’s capacity to generate new employment in export focused businesses, even when Ireland is experiencing some of its strongest ever jobs growth in this type of business.

IDA

2015 saw the highest level of employment in IDA client companies in the organisation’s 67 year history reaching 187,056. A total of 18,983 new jobs were created by their clients during 2015, when job losses are taken into account, there was net job creation of 11,833, slightly higher than that recorded by EI clients.

Similar to EI, the IDA’s end-of-year statement gives more focus to regional performance than in some previous years. Overall, 53% of all jobs created by IDA clients in 2015 were based outside of Dublin, which is an improvement over the 49% share in 2014.

While 53% of new jobs were created outside of Dublin in 2015, this area accounts for 59% of total employment in IDA backed companies. The legacy of past investments in more regional locations continues to influence the overall pattern of FDI jobs, even as new investments tend to be attracted to more urban areas.

The IDA end-of-year statement doesn’t provide detail on the differences across the regions, though it does note that every region experienced an increase in employment in IDA backed companies. It will be very interesting to see the detailed regional breakdown of this performance to see if it shows a similar inter-regional pattern to the EI client companies, with the Western Region having the lowest growth. Although the strength of Galway in attracting FDI means the West region may show a stronger performance in foreign owned employment in 2015 than in Irish owned.

While overall, 2015 was very positive in terms of regional job creation by both EI and IDA client companies, the inter-regional differences in the results for EI companies would indicate that more needs to be done to increase the pace of the jobs recovery in the Western Region.

Pauline White

WDC Insights- Christmas Quiz!

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We hope you have been following and reading the WDC Insights blog in the last year. Take our Christmas Quiz (9 questions) and see how well you score on regional development and Western Region issues. The answers are below with links to more information and the relevant posts.

Good Luck!

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1      The WDC published its report on ‘Trends in Agency Assisted Employment in the Western Region’ in January. This included an analysis of data for each of the seven western counties. In 2013 what proportion of the total jobs in Sligo were agency assisted?

  1. 63.2%
  2. 27.6%
  3. 15.3%

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2      Agriculture in the Western Region of Ireland is characterised by smaller farm size, poorer land quality and a higher dependence on off farm income than in many other parts of Ireland. Nonetheless agriculture remains a significant employer and makes an important contribution to the regional economy.

What is the average farm size in the Western Region?

  1. 43.7 ha
  2. 15.2 ha
  3. 26.3 ha

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3      In the latest CSO data on Income and Living Conditions (released 26th November) poverty and at risk of poverty rates are given. What is the difference between the at risk of poverty rates between the BMW and S&E regions?

  1. 5.7%
  2. 15.2%
  3. 1.3%

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4      In a recent a creative momentum project survey what proportion of creative entrepreneurs were exporting?

  1. 8%
  2. 48%
  3. 68%

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5      Examining regional indicators can help us to understand the growth and development taking place in our regions, to highlight changes and assess issues of efficiency and equity among regions.

Looking at the data since 2003 are regional disparities

  1. Widening?
  2. Narrowing?
  3. Staying the same?

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6      Understanding the sectoral pattern of jobs in the region and patterns of sectoral growth and decline is particularly important to the development of job creation, skills and enterprise policy for the region.

What is the largest employment sector in the Western region?

  1. Industry
  2. Wholesale and Retail
  3. Public Administration and Defence

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7      The WDC has been highlighting rural broadband needs for more than a decade. It recently submitted its views to the consultation on the rollout of the National Broadband Plan.

What is the minimum download speed set down under the National Broadband Plan (in Mega bits per second (Mbps))?

  1. 30 Mbps
  2. 100 Mbps
  3. 12 Mbps

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8      In February 2015 the IDA published a new 5-year strategy which put considerable focus on the regional balance of future FDI investments. The strategy includes a target to increase the number of investments in every region, outside of Dublin. By how much are the investments in the regions targeted to increase?

  1. By 10-20% over the 5 years of the strategy?
  2. By 30-40% over the 5 years of the strategy?
  3. By 80-90% over the 5 years of the strategy?.

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9      With The Paris Agreement at COP21 marking a turning point in the response to climate change, it is time to consider how we will meet those targets in Ireland so we examine some of the issues for climate change mitigation in the Western Region in this post.

What percentage of households in the Western Region use oil to heat their homes?

  1. 63.1%
  2. 84.2%
  3. 38.8%

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Answers:

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  1. Assisted jobs

Answer:3) 15.3%

The WDC published a report on ‘Trends in Agency Assisted Employment in the Western Region’ in January 2015.week. This included an analysis of data for each of the seven western counties. Taking Sligo as an example in 2013, there were 3,880 people working in agency assisted jobs there. 15.3% of total jobs in the county were agency assisted, which is below the state average (19.3%). Some 55.6% of assisted jobs in Sligo are in foreign owned companies; lower than a decade earlier. Irish owned assisted employment has grown steadily since 2011 and was up 4.8% in 2013. Sligo’s second largest assisted sector – Traditional Manufacturing – has had the strongest recent growth, up a fifth (21.5%) between 2010 and 2013.

For more about agency assisted jobs in the other Western Region counties see this post

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  1. Farm size

Answer: 3) 26.3 ha

Agriculture in the Western Region of Ireland is characterised by smaller farm size, poorer land quality and a higher dependence on off farm income than in many other parts of Ireland. Nonetheless agriculture remains a significant employer and makes an important contribution to the regional economy.

The average farm size in the Western Region (counties Clare, Donegal, Galway, Leitrim, Mayo, Roscommon and Sligo) was 26.3 ha in 2010. Farm sizes are significantly smaller than in the rest of Ireland where the average farm in 2010 was 36.9 ha. Nonetheless farm size in the Western region has grown by a third since 1991 when the Western Region average was 19.8 ha with most of the growth occurring in the 1990s (almost 27% of the growth occurred between 1991 and 2000). For more information, read this post.

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  1. Poverty data

Answer: 1) 5.7%

The CSO released the latest data on Income and Living Conditions on 26th November 2015. The headline figures indicate a rise in incomes – increasing by 3.5% between 2013 and 2014, which in turn was higher than the figure in 2012. The release also provided data on poverty rates at a regional level.   Analysis of consistent poverty rates by region, which will be influenced by rural-urban patterns, shows that the rate for the Border, Midlands and Western region was 10.8% compared with 7.0% for the Southern and Eastern region in 2014. The at-risk of poverty-rate was also higher in the Border, Midlands and Western region compared to the Southern and Eastern region, 20.5% and 14.8% respectively. The difference was 5.7%.

For more on poverty and at-risk of poverty rates see this post.

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  1. a creative momentum project survey

Answer: 3) 68%.

In order to inform the development a creative momentum project activities, an online survey was circulated to creative entrepreneurs based in the participating regions. The survey ran from 28 September to 18 October and there were a total of 170 responses.

68% reported that they made some sales outside of their own country, which was higher than indicated in previous surveys. Cross-border business between Ireland and Northern Ireland seemed to be a strong element in these export sales. Of those businesses who did not export currently (44), 70% indicated a desire to export.

For more on the survey see this post

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  1. Regional Disparities

Answer: 1) Widening

There has been a significant widening of the gap between the BMW and the S&E regions since 2008, the difference in 2012 was 48.3 points and in 2008 was 40.6 points (in 2003 it was 42.6).

Disparities in regional GVA have been increasing in recent years and have been particularly significant since 2008 while, in contrast, disparities in disposable income reduced between 2003 and 2010, but have increased since then. For more see this post

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  1. Employment sectors

Answer: 2) Wholesale and Retail.

The largest employment sector is Wholesale and Retail and the two largest employment sectors in the Western Region are Wholesale and Retail, and Industry which together account for about 30% of jobs.  Of the region’s top seven sectors, all (except Health) account for a greater share of jobs in the region than the rest of the state.  Agriculture and Industry (manufacturing) are considerably more important in the region.  Among the region’s smaller sectors the share working in them in the region is considerably below that in the rest of the state.

In general the Western Region’s jobs profile relies more heavily than the rest of the state on the traditional sectors (Industry, Agriculture and Construction) and local services (Wholesale and Retail, and Accommodation and Food Service) which depend on domestic spending and tourism.  The region’s sectoral jobs pattern is influenced by its largely rural nature. For more information see this post

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  1. Broadband

Answer: 1) 30Mbps

The WDC in its submission to the consultation on the rollout of the National Broadband Plan suggests that one option would be to review the basic minimum standard, for both up and download speeds, every 5 years (or more frequently depending on technological change and demand requirements) and raise the minimum standard accordingly. For more from the WDC on broadband see here and here

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  1. IDA Strategy

Answer: 2) 30-40% over the 5 years of the strategy

The strategy includes a target to increase the number of investments in every region, outside of Dublin, by 30-40% over the lifetime years of the strategy. With Dublin maintaining a similar level to currently. For example for the West, which received 71 investments over the 2010-2014 period, the target is to achieve 92-99 investments over 2015-2019. For the Border region the target is 61-66 investments (it received 47 in the past five years). These targets do not just refer to new name investments, but include expansions by existing FDI companies and R&D investments.

Read more about it here.

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  1. Climate change

Answer: 1) 63.1% of homes use oil as their main heating fuel

The pattern of fuel usage in central heating is very different in the Western Region and the rest of the state. This is primarily due to the lack of access to natural gas across most of the region. Less than 5% of households in the Western Region use natural gas to heat their home compared with 40% in the rest of the state. Lack of access to natural gas makes the Western Region far more reliant on other fuels, many which have higher carbon emissions. Oil is used by 63.1% of households in the region compared to 38.8% in the rest of the state. Wood fuels and other biomass are slightly more important in the Western Region 1.4% compared to 1.3% in the rest of the state but there needs to be a significant policy focus using renewable energies for domestic heating. These include solid biomass (wood chips, pellets and logs). In many rural situations users have more space and fuel can be sourced locally with less transport required, so these options may be more suitable than for urban dwellers. Uptake could be improved with appropriate, targeted incentives.

For more on rural urban differences, western region statistics and the need for climate change mitigation to focus on rural areas see this post.

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How well did you do?

You got 8 or 9 answers correct–

CONGRATULATIONS! You really know a lot about regional development, the Western Region and the Western Development Commission’s work.

 

You got between 4 and 7 answers correct –

WELL DONE, a good score but some deficiencies in your knowledge. Perhaps you should read the WDC Insights posts more carefully in 2016!

 

You got between 0 and 3 answers correct

OH DEAR! Time to pay more attention to regional development and Western Region Issues. You’ll have to do some extra study over the holiday! Reread the WDC Insights blog and check out the WDC publications page and re-take the quiz in the New Year!

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Helen McHenry

Unemployment declining in Western Region at a slower pace

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A few interesting trends are emerging from our initial analysis of a special run of data received from the CSO’s Quarterly National Household Survey for Quarter 1 2015. This data covers the seven county Western Region and compares data for the region with the rest of the state (all other counties combined).

Following the general trend, the Western Region’s unemployment rate is declining but this is happening at a slower pace than elsewhere. The region’s unemployment rate is now 10.4%, above the 9.8% rate in the rest of the state (Fig. 1). This compare with 11.4% and 12.1% respectively a year previously (Q1 2014). The unemployment situation seems to be improving more rapidly in the rest of the state.

Fig. 1: Unemployment rate in Western Region and rest of the state, Q1 2006 - Q1 2015. Source: CSO, QNHS Q1 2015. Special run.

Fig. 1: Unemployment rate in Western Region and rest of the state, Q1 2006 – Q1 2015. Source: CSO, QNHS Q1 2015. Special run.

Part of the reason for this is that the numbers in employment in the region have grown by less than elsewhere. Over the past year the numbers at work increased by 1.4% in the Western Region compared with 2.3% growth in the rest of the state.

The slower decline in the region’s unemployment rate also carries through to long-term unemployment which fell from 7.0% to 6.4% in the Western Region compared with a far greater drop (7.3% to 5.8%) in the rest of the state.

But it is among young people that the region’s poorer unemployment record really stands out. The unemployment rate among young people (15-24 years) in the Western Region is 30.8% (Fig. 2). This is a full 10 percentage points higher than in the rest of the state (20%). And unlike the general trend, the youth unemployment rate in the region is continuing to climb, up from 29.2% in the past year. This is in stark contrast to the rest of the country where youth unemployment declined strongly (from 24.6% to 20%) widening the regional gap even more.

Fig. 1: Unemployment rate in Western Region and rest of the state, Q1 2006 - Q1 2015. Source: CSO, QNHS Q1 2015. Special run.

Fig. 1: Unemployment rate in Western Region and rest of the state, Q1 2006 – Q1 2015. Source: CSO, QNHS Q1 2015. Special run.

Earlier this week the Irish National Organisation of the Unemployed (INOU) highlighted the fact that jobseekers in rural areas are finding it harder to get a job and that the recovery is not being felt in all parts of the country.  Our initial analysis of the Q1 2015 data for the Western Region, where two-thirds of the population live in rural areas, supports this assertion and in particular for younger jobseekers.

The need for a more even spatial pattern of job creation has been highlighted in a number of recent strategies such as the IDA’s, and the upcoming Action Plan for Jobs for the West and Border regions will also focus on this, but it remains to be seen how effective these strategies will be.

The WDC will be releasing further analysis of the region’s labour market over the coming months.

Pauline White

Worrying trend in the North West’s assisted jobs performance

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The Annual Employment Survey for 2014  (PDF 0.25Mb) (formerly the Forfás Annual Employment Survey) was published a few weeks ago by the Department of Jobs, Enterprise and Innovation. This data counts agency assisted employment (jobs in companies which have received assistance from Enterprise Ireland, IDA or Udarás na Gaeltachta) and covers the 10 year period 2005-2014. We’ve examined the 2013 report at regional and county level in earlier posts.

In 2014 there were a total of 319,597 agency assisted permanent full-time jobs in the country, up 5.1% from the previous year. These were divided almost evenly between Irish (158,829) and foreign (160,768) owned companies, both of which experienced similar growth since 2013 (5.2% and 4.9% respectively). There were an additional 42,818 agency assisted temporary or part-time jobs.

Every region experienced growth in assisted jobs in 2014. The report contains a section on regional employment trends, which reviews trends for the Border, Midlands and West (BMW), South and East (S&E) and Dublin regions, but the smaller scale regional data contained in the Appendix (PDF 0.3Mb) tells a more interesting story. Particularly as it separates the North West and North East that are usually combined in the diverse Border region.

North West has largest fall in assisted jobs 2005-2014

Over the 10 years 2005-2014 the North West experienced the largest decline in agency assisted jobs of any region in Ireland. Total assisted jobs (both permanent and temporary) fell by -18.2% in the North West (Fig. 1). This was considerably greater than in the second highest, the Mid West, where they fell by -11.9%. The percentage decline in the North West was almost identical to the percentage increase experienced by Dublin over the same period (+18.0%).

The North West’s poor performance is due to the severity of its decline during the recession coupled with slower recovery.  Between 2007 and 2010 the North West had a -17.1% decline in total assisted jobs compared with the -12.2% national average. Then in the most recent year (2013-2014) it had the smallest increase in total assisted jobs of only 2.3%; compared with a national average of 4.5% and over 6% growth in some regions. In the previous year’s report, the North West had similar low growth of just 2.2% between 2012 and 2013, although at that time the South East and Mid West were lower. Both of these regions experienced a strengthening recovery in 2014.

Fig. 1: Percentage change in total assisted employment by region, 2013-2014 and 2005-2014. Source: DJEI (2015), Annual Employment Survey 2014, WDC analysis

Fig. 1: Percentage change in total assisted employment by region, 2013-2014 and 2005-2014. Source: DJEI (2015), Annual Employment Survey 2014, WDC analysis

North West’s Irish owned sector performing extremely poorly

The main driver behind the North West’s poor performance is the Irish owned sector. Irish owned assisted jobs in the North West fell by -20.7% between 2005 and 2014 (Fig. 2). This was substantially higher than the next largest decline of -6.7% which occurred in the West. In fact the only other regions with fewer Irish owned assisted jobs in 2014 than in 2005 were the South East (-6.3%) and the North East (-2.7%). Irish owned assisted jobs in the North West only grew by 1.9% between 2013 and 2014, compared with the 5.2% national average.

The North West has not performed well in the foreign owned sector either. The North West’s -14.9% decline in foreign owned assisted jobs over the 10 years was considerably worse than the national performance (5.1% growth). However several other regions had even greater declines (Mid West, Mid East and Midlands), showing the North West’s relatively better record in the foreign owned sector.  The North West’s Irish owned sector, and its very slow current recovery, seems to be at the heart of the region’s weak performance.

Fig. 1: Percentage change in total assisted employment by ownership and region, 2005-2014. Source: DJEI (2015), Annual Employment Survey 2014, WDC analysis

Fig. 1: Percentage change in total assisted employment by ownership and region, 2005-2014. Source: DJEI (2015), Annual Employment Survey 2014, WDC analysis

West’s Irish owned sector also struggling

Turning to the West region, it has performed well in recent years, with the third highest increase in foreign owned assisted jobs between 2005 and 2014. However, similar to the North West, the Irish owned sector is not experiencing much recovery with just 1.6% growth between 2013 and 2014 (the lowest of any region) leading to the West experiencing the second poorest overall jobs growth of just 2.4% in 2014.

There seems to be a fundamental issue with the North West and West’s Irish owned assisted sector not benefitting from the current upturn in the economy. The divergent performance of the Irish and foreign owned assisted sector in the Western Region, and the fact that the region’s jobs recovery is relying far more on the foreign owned sector than elsewhere, was highlighted in the WDC’s 2015 report Trends in Agency Assisted Employment in the Western Region  which analysed 2013 data. The 2014 figures indicate that this trend has intensified even further.

The new Action Plan for Jobs for the West and Border regions, due to be published shortly, will need to contain very specific actions and targets to stimulate growth in indigenous exporting companies if this trend is to be reversed.

Pauline White

Women, men and the jobs recovery

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In previous posts we’ve looked at the Western Region’s Labour Market and its Sectoral Profile, but how do these patterns differ by gender? Is the current jobs recovery impacting on men and women differently?

While jobs growth is underway in the country as a whole, as well as in the Western Region (though at a lower level), this has mainly been driven by growth in male jobs. Between 2012 and 2014 male employment in the rest of the state (all counties other than the seven counties of the Western Region) increased by 5.9% compared with 1.6% growth in female employment. In the Western Region over the same period, 2.9% growth in male jobs was in contrast to a -0.4% decline in the number of women at work. Women in general do not appear to be benefiting as much as men from the upturn in the labour market, and even more so in the Western Region. Why is this?

Jobs growth in sectors important for male employment, but decline in many female dominated sectors

Much of it stems from the sectoral jobs pattern and the relative performance of male and female dominated sectors. Fig. 1 shows the percentage of male and female jobs in each sector in the Western Region. Public and local services are the main areas of employment for women. The biggest gender difference is in Health and Social Work which accounts for 22% of women’s jobs compared with 4.3% of men’s. A total of 41.1% of working women in the region work in the predominantly public sectors (Health, Education & Public Administration). For men the figure is just 12.9%. Any reduction or lack of growth in public sector jobs has a far greater impact on women’s employment.

Accommodation and Food Service, ‘Other NACE Activities’, Financial, Insurance and Real Estate, and Administrative and Support Services also account for a greater share of women’s than men’s jobs. These are all predominantly local services which have been impacted by limited domestic demand.

Industry, Agriculture, Construction, and Transport and Storage are the most male dominated sectors. Industry accounts for twice as large a share of all male jobs as female. For the others, their share of all female jobs is very low. It is notable that the knowledge services sector of Information and Communication, often seen as a key future growth area, accounts for a far higher share of male than female jobs.

Fig. 1: Percentage of employment by sector and gender in the Western Region, Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 2. Special run)

Fig. 1: Percentage of employment by sector and gender in the Western Region, Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 2. Special run)

Between 2012 and 2014 half of sectors (7 of 14) experienced an increase in employment in the Western Region (Fig. 2). Industry, Agriculture, Wholesale and Retail, and Accommodation and Food Service, the four largest male employment sectors, all experienced jobs growth. This contributed to the overall 2.9% growth in male jobs between 2012 and 2014.

However jobs in Health and Education declined in the region, while they rose in the rest of the state. Combined with declines in Finance, Other Services and Public Administration (all of which are more important female employers) these sectoral declines contributed to the -0.4% decline in women’s jobs in the region. The contraction of employment in Health and Education in particular has significant implications for women’s jobs, particularly in more rural areas of the region which have higher dependence on these sectors, partly due to limited alternative professional or clerical career opportunities.

Fig. 2: Percentage change in employment by sector in the Western Region and rest of the state, Q1 2012 to Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 2. Special run)

Fig. 2: Percentage change in employment by sector in the Western Region and rest of the state, Q1 2012 to Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 2. Special run)

Lower female participation

A distinct gender pattern obvious from Fig. 3  and Fig. 4 is the higher proportion of men who are active in the labour force. The region’s male labour force participation rate is 65.2% compared with a female rate of 50.4%. The gender gap in participation rates narrowed during the recession as participation among men, particularly young men, fell very dramatically while female rates remained steady. However 2014 saw some widening of the gender gap again as the female rate declined and the male rate rose. The weaker recent female jobs performance may be contributing to declining female participation in the labour market.

Fig. 3: Economic status of Western Region’s male population aged 15 years and over, Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 1. Special run)

Fig. 3: Economic status of Western Region’s male population aged 15 years and over, Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 1. Special run)

Higher male unemployment but gap narrowing

Despite the stronger recent growth in male jobs, there is still a far greater number of unemployed men in the region than women – 26,200 compared with 14,400 (Fig. 3 and Fig. 4). The massive increase in unemployment from 2008 was initially concentrated among men, given the job losses in building and related sectors, before spreading more widely across the domestic economy leading to rising female job losses (though at a lower level).

The fall in unemployment since 2012 has been stronger among men than women; meaning that while the unemployment rates for both sexes have declined, the rate of decline has been stronger among men, narrowing the gender gap. In 2012 there was a 5.5 percentage point gap, which narrowed to 4.0 percentage points by 2014 when the region’s male unemployment rate was 13.3% and the female 9.3%. Unemployment continues to be higher among men but the difference is declining.

Fig. 4: Economic status of Western Region’s female population aged 15 years and over, Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 1. Special run)

Fig. 4: Economic status of Western Region’s female population aged 15 years and over, Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 1. Special run)

Note: The percentages refer to the share of the adult population in each category. Therefore the percentage unemployed is not the same as the unemployment rate which refers to the number unemployed as a percentage of those in the labour force and not of the entire adult population.

Greater part-time working among women

The other key feature of Fig. 3  and Fig. 4 is the far greater share and level of part-time working among women. In 2014 almost twice as many women (52,600) as men (27,500) in the region were working part-time. As a proportion of total employment this was 37.4% of all working women compared with 16.1% of working men. A key aspect is the extent to which part-time working is by choice or involuntary. If a person would prefer to be working full-time (if a full-time job were available) they are considered to be part-time underemployment. For men who are working part-time, 40% are underemployed but for women it is 27%. The extent to which women choose part-time work is very often related to greater caring responsibilities and the availability (or lack) of appropriate and affordable care provision.

For both men and women the share working part-time is higher in the Western Region than the rest of the state. In the case of women, part-time working in the region has increased since 2012 (rising from 35.3% to 37.4%) while it has remained unchanged for women in the rest of the state and declined slightly among men in the region. Not only has total female employment in the region declined since 2012, but a greater proportion of those who are working are working part-time.

This analysis raises serious questions in relation to not only the spatial pattern of the current jobs recovery but also the gender pattern. Women in the Western Region appear to be experiencing the poorest jobs recovery; compared with men and also with women living elsewhere. The concentration of female jobs in public services and the recent employment declines in these sectors in the region seems to be one of the main reasons, a trend that requires further investigation.

Pauline White

The Western Region’s Sectoral Profile

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We’ve just published WDC Insights-The Western Region’s Sectoral Profile-April 2015 (PDF 0.2MB) which presents the key findings from The Western Region’s Labour Market 2004-2014-WDC Report March 2015 (PDF 2.5MB) on the region’s sectoral pattern of employment.

Understanding the sectoral pattern of jobs in the region, and recent patterns of sectoral growth and decline, is particularly important to the development of job creation, skills and enterprise policy for the region.

Sector of employment

The two largest employment sectors in the Western Region are Wholesale and Retail, and Industry with around 30% of jobs (Fig. 1).  Of the region’s top seven sectors, all (except Health) account for a greater share of jobs in the region than the rest of the state.  Agriculture and Industry (manufacturing) are considerably more important in the region.  Among the region’s smaller sectors the share working in them in the region is considerably below that in the rest of the state.

In general the Western Region’s jobs profile relies more heavily than the rest of the state on the traditional sectors (Industry, Agriculture and Construction) and local services (Wholesale and Retail, and Accommodation and Food Service) which depend on domestic spending and tourism.  The region’s sectoral jobs pattern is influenced by its largely rural nature.

Fig. 1: Percentage of employment by sector in the Western Region and rest of the state, Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 2. Special run)

Fig. 1: Percentage of employment by sector in the Western Region and rest of the state, Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 2. Special run)

Western Region’s share of jobs by sector

This jobs pattern can also be seen in the region’s share of national total jobs in each sector.  In total 16.5% of all jobs in the state are located in the Western Region (Fig. 2).  Agriculture, Industry and Construction are the sectors where the region makes its largest contribution to national jobs.

The region’s share of all Industry jobs nationally has increased very strongly in recent years from 16% in 2007 to its current 19.5%, due to its relatively more stable jobs performance in the region.  The region’s manufacturing strength is a key national asset and a previous blog post on ‘Trends in Agency Assisted Employment in the Western Region’ highlighted the industrial sub-sectors which have driven the region’s manufacturing strength.

The three knowledge intensive services sectors are where the region accounts for its lowest shares of national jobs.  Less than 10% of all Information and Communication, and Financial, Insurance and Real Estate jobs are based in the region and its share of both has declined since 2012.  Not only does the region have low shares in these sectors but it is losing ground.

Fig. 2: Percentage of total employment in the state based in the Western Region by sector, Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 2. Special run)

Fig. 2: Percentage of total employment in the state based in the Western Region by sector, Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 2. Special run)

Recent changes in employment by sector

Between 2012 and 2014 half of sectors (7 of 14) experienced jobs growth in the Western Region (Fig. 3).  Agriculture grew most strongly followed by Professional, Scientific and Technical activities next.  Growth in these sectors contributed to the region’s increasing share of self-employment.  Wholesale and Retail and Accommodation and Food Service also grew as this period coincided with an increase in overseas visitor numbers as well as consumer spending.

The Western Region experienced a far greater jobs decline than the rest of the state across many sectors, including knowledge intensive services and public services.  In the case of Information and Communication, employment fell by nearly 16% in the region but it had the fourth largest growth in the rest of the country (5.2%).  The reasons for the Western’s Region poor, and weakening, jobs performance in this high growth potential sector need to be investigated.

Fig. 3: Percentage change in employment by sector in the Western Region and rest of the state, Q1 2012 to Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 2. Special run)

Fig. 3: Percentage change in employment by sector in the Western Region and rest of the state, Q1 2012 to Q1 2014 (Source: CSO, Quarterly National Household Survey, Q1 2014, Table 2. Special run)

These key aspects of the Western Region’s labour market should inform the development of the upcoming Action Plan for Jobs for the West, Border and Mid-West regions.  The region’s labour market characteristics should influence which policies are prioritised for the region and the sectors of focus for job creation strategies.

Download WDC Insights The Western Region’s Sectoral Profile and full report ‘The Western Region’s Labour Market 2004-2014’ here

Pauline White

 

Note: The CSO has noted concerns over the impact of the new sampling structure on the employment figures for Agriculture. 

Source: CSO, Quarterly National Household Survey, Quarter 1 2004-2014, special run

 

The Western Region’s Labour Market

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The WDC has just published a new analysis of the Western Region’s Labour Market. This is based on a special run of data from the CSO’s QNHS for the period 2004-2014 for the seven-county Western Region. Understanding the region’s labour market is important for effective job creation, enterprise and skills policy.

In 2014 the Western Region’s adult population was just over 600,000 with 350,000 active in the labour force. Its labour force has contracted since 2012, largely because of outward migration, and is characterised by higher part-time, under- and self-employment, for both men and women. These are distinct differences in the nature of the region’s labour market that may point to certain weaknesses which need to be addressed by tailored job creation actions for the region.

Western Regions adult populatin diagram

 

Some of the key findings of the analysis are:

  1. Lower labour force participation in the Western Region: A smaller share of the Western Region’s adult population is engaged in the labour market and therefore economically active. The region’s participation rate in 2014 is 57.7% compared with 60.1% in the rest of the state. As human capital is among the most critical factors for regional economic development, this has negative implications for the region’s economic growth and viability. The higher level of economic dependency, resulting from the larger proportion of the population outside of the labour force, also has important social impacts and increases the need for state transfers.
  2. Higher share of self-employment: The region has a higher share of self-employment (without employees) than the rest of the state – 16.3% of all employment in the region compared with 11.4% in the rest of the state. This increases the importance of policy and supports to facilitate the self-employed to establish and sustain their businesses, such as soft business supports, quality broadband, networking, etc. Many may work from home or are mobile and are engaged in local services and therefore outside the remit of the enterprise agencies. They play a particularly significant role in sustaining rural communities and economies. This role, and their needs, requires further investigation and policy focus.
  3. Higher share of part-time working and recent jobs growth more likely to be part-time: There is a higher degree of part-time working in the region with 25.7% of all jobs in the region in 2014 part-time, compared with 23.5% in the rest of the state. Recent jobs growth has also been more likely to be part-time in the region than elsewhere. While part-time working can play an important role for those with caring and other commitments, the greater share of recent jobs growth in the region that is part-time raises some concerns over the nature of employment and the quality of recent jobs growth. A focus on stimulating more full-time jobs should be built into job creation policy for the region.
  4. Lower employment growth: Employment in the region grew over 2012-2014 by 1.4% but this was less than in the rest of the state (3.9%). The jobs recovery in the region is lagging that elsewhere. Initiatives to stimulate and facilitate job creation in regional locations are required to address the region’s weaker jobs performance.
  5. Declining unemployment influenced by out-migration: Unemployment has declined by 28.4% since 2012 but this has only partially been caused by jobs growth. The greater part is due to the loss of unemployed people from the region, either overseas or to other parts of Ireland. The decline in unemployment in the region has been stronger than elsewhere, leading to its unemployment rate dropping below that in the rest of the state (11.5% compared with 12.1% in 2014), reflecting the significant impact of out-migration on the region’s labour market.
  6. Higher youth unemployment rate: The Western Region has a higher youth (15-24 yrs) unemployment rate, 29.2% compared with 24.6% in the rest of the state. As the region has a lower total unemployment rate, this indicates that youth unemployment is a more serious challenge for the region. High youth unemployment can have very significant long-term impacts, as a period of unemployment at a young age can hinder the person’s career prospects and earnings potential. The needs of young jobseekers in the Western Region should be a key policy priority, nationally and for the region, both to prevent them from falling into long-term unemployment and also to reduce out-migration.

These aspects of the Western Region’s labour market should inform the development of the upcoming Action Plan for Jobs for the West, Border and Mid-West regions. The distinctive characteristics of the region’s labour market profile should influence which policies are prioritised for the region and the sectors of focus for job creation strategies. A new WDC Insights on the Western Region’s sectoral profile will be published in coming weeks.

Download two-page WDC Insights WDC Insights-The Western Region’s Labour Market-April 2015 (PDF 0.2MB)

Download full WDC report The Western Region’s Labour Market 2004-2014-WDC Report March 2015 (PDF 2.5MB)

Pauline White

New Regional FDI Targets

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Yesterday’s announcement of IDA Ireland’s new 5-year strategy put considerable focus on the regional balance of future FDI investments.

The strategy includes a target to increase the number of investments in every region, outside of Dublin, by 30-40% over the lifetime years of the strategy. With Dublin maintaining a similar level to currently. For example for the West, which received 71 investments over the 2010-2014 period, the target is to achieve 92-99 investments over 2015-2019. For the Border region the target is 61-66 investments (it received 47 in the past five years). These targets do not just refer to new name investments, but include expansions by existing FDI companies and R&D investments.

Map of current IDA regional profile

Map of current IDA regional profile

The record in achieving regional FDI investment targets to date has not been particularly good and it is interesting to note the IDA states that it sees these regional FDI targets as ‘… collective targets for the stakeholders in each region to work together to achieve’. Together with considerable emphasis on the role of the upcoming Regional Enterprise Strategies (or Regional Action Plans) being prepared by DJEI, there seems to be more focus on the role of other actors in attracting FDI.

It has been highlighted elsewhere that Local Authorities, with their increased economic and enterprise development remit through the LEOs, could become more active in targeting smaller scale FDI opportunities, including through county diasporas.

In setting out how it plans to deliver on these targets, IDA Ireland refers to developing sectoral ecosystems in the regions by aligning IDA business sectors with regions and their strengths as well as working more closely with EI to maximise clusters and linkages with indigenous businesses. The €150m investment in property solutions in various locations, including Sligo, Castlebar and Galway in the Western Region, announced a few weeks ago, seems to be viewed as a key element in achieving the targets.

As we highlighted in our analysis of agency assisted employment, recent agency assisted jobs growth has been driven more by the foreign owned sector in the Western Region than in the rest of the state, largely because of the weaker performance of the region’s Irish owned assisted sector. Efforts to achieve the regional FDI targets hold particular importance for the Western Region.

Pauline White

Agency Assisted Employment in the Western Counties

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The WDC published its report on ‘Trends in Agency Assisted Employment in the Western Region’ last week. This included an analysis of data for each of the seven western counties. The main findings for the western counties are:

  •  Galway: In 2013, there were 23,650 people working in agency assisted jobs. Galway has the third highest share in Ireland of agency assisted jobs as a share of total jobs at 23.5%. Over 60% of agency assisted jobs in Galway are in foreign owned companies (2013), this is the highest level for the past ten years. Since 2010 employment in assisted foreign owned companies grew by 19% while in Irish owned it only grew 3%. Modern Manufacturing, which includes medical devices and ICT, is Galway’s largest sector and in 2013 reached its highest level with 8,750 permanent full-time jobs.
  • Clare: In 2013, there were 9,250 people working in agency assisted jobs. Clare has the fifth highest share in Ireland of agency assisted jobs as a share of total jobs at 20.3%. Just over 40% of agency assisted jobs in Clare are in foreign owned companies (2013); this is considerably lower than ten years ago. Since 2010 jobs in assisted Irish owned companies in Clare have remained relatively stable, while foreign owned have continued to decline, with some slight recovery in 2013. Traditional Manufacturing is Clare’s largest sector and has grown since 2011, as has Modern Manufacturing. Assisted jobs in the international services sectors are declining however, which has meant that total assisted jobs have not grown.
  • Mayo: In 2013, there were 8,310 people working in agency assisted jobs. The total number in Mayo is close to the 2006/2007 peak and a higher share are now in permanent full-time jobs. Mayo had the second highest growth in agency assisted jobs in the Western Region in 2013 at 4.9%. There was stronger growth in foreign owned companies (6.1%) than Irish owned (2.7%) in that year. Assisted jobs in Mayo are almost evenly divided between foreign and Irish companies. Mayo’s largest assisted employment sector is Modern Manufacturing, which includes medical devices and chemicals, with almost 3,000 permanent full-time jobs. This is its highest level in the past ten years.
  • Donegal: In 2013, there were 7,850 people working in agency assisted jobs. The biggest change in the county over the past ten years is the rise in the share that are permanent full-time from 78% to 86.3% (2004-2013). The total number of agency assisted jobs in Donegal was up 4.4% in 2013. Donegal has the lowest share of its assisted jobs in foreign owned companies in the Western Region at 38.1%, although this is the county’s highest share of the past ten years. While assisted jobs in foreign owned companies have been growing since 2010, those in Irish owned companies showed their first increase since 2007 in 2013. Information and Communications is the assisted sector with the strongest recent jobs growth, up 30.9% between 2010 and 2013.
  • Sligo: In 2013, there were 3,880 people working in agency assisted jobs. 15.3% of total jobs in the county were agency assisted, which is below the state average (19.3%). Of total agency assisted jobs, 12.5% are temporary/part-time. This is below the Western Region average but the highest level in Sligo between 2004 and 2013. Some 55.6% of assisted jobs in Sligo are in foreign owned companies; lower than a decade earlier. Irish owned assisted employment has grown steadily since 2011 and was up 4.8% in 2013. Sligo’s second largest assisted sector – Traditional Manufacturing – has had the strongest recent growth, up a fifth (21.5%) between 2010 and 2013.
  • Roscommon: In 2013, there were 2,360 people working in agency assisted jobs. Roscommon had the highest growth in such jobs in the Western Region in 2013 at 6%. This growth was driven by Irish owned companies. 2013 was the first year that agency assisted jobs grew in Roscommon since 2007; later than in most other counties. In a national context, the county has a low share of agency assisted jobs. Agency assisted jobs in Roscommon are very concentrated in manufacturing. At 51.2%, the share of Roscommon’s agency assisted jobs that are in the Modern Manufacturing sector, which includes medical devices and pharma, is the second highest in Ireland. The sector showed strong growth in 2013 (6.6%), with Traditional Manufacturing also increasing (10.1%).
  • Leitrim: In 2013, there were 1,310 people working in agency assisted jobs. Leitrim has the highest share of its agency assisted jobs in foreign owned companies (62.9%) in the region and is third highest nationally. Despite this, agency assisted jobs in Leitrim declined in each year between 2004 and 2013. All other western counties, except Clare, have seen some recovery since 2010. While total numbers are declining, Irish owned assisted jobs in Leitrim have begun to recover, up 8.4% in 2013. International Services was Leitrim’s largest agency assisted sector for most of the ten years. In 2012 it was surpassed by Traditional Manufacturing which is now the largest. However, the Modern Manufacturing sector has performed best in recent years with permanent full-time jobs up 8.3% in 2013.

Download the two page WDC Insights, full report and 7 county profiles here

Trends in Agency Assisted Employment in the Western Region

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The WDC has today published a new WDC Insights Trends in Agency Assisted Employment in the Western Region as well as a county profile for each of the seven western counties.

Employment in businesses which have received support from one of the main enterprise agencies, which are usually export oriented, is termed agency assisted employment. The WDC has published its analysis of data on these businesses for the Western Region for 2004 to 2013.

Our analysis has found that:

  • Lower recent growth: There was less volatility in assisted job numbers in the Western Region over the period. Assisted jobs in the region have not grown as strongly as in the rest of the country since growth resumed in 2010.
  • More permanent full-time employment: Recent assisted jobs growth in the Western Region is more likely to be permanent full-time with the share of temporary/part-time jobs lower now than at the start of the period.
  • Concentrated by sector: Assisted jobs in the Western Region are more concentrated by economic sector than in the rest of the state and manufacturing activities continue to dominate.
  • Foreign owned sector driving growth: The strongest recent assisted jobs growth has been in the modern manufacturing and information and communication sectors which are the sectors with the highest shares of foreign ownership. The foreign owned sector has driven recent growth in the Western Region to a greater extent than in the rest of the state.
  • Irish owned sector performing less well: There has been much greater volatility in the Irish owned sector over the ten year period and the region’s Irish owned sector is not showing as strong a recovery as in the rest of the country.
  • Urban concentration: Urban concentration, especially in the cities, is a feature of assisted jobs. The resumption of growth does appear to be spreading across the Western Region to some degree, although Clare and Leitrim have seen no increase in assisted employment.

Agency assisted employment is a key policy tool for job creation and unemployment reduction.  Recent growth in assisted jobs in the Western Region has not been as strong as elsewhere, particularly among Irish owned businesses.  Agency assisted job creation in the Western Region needs to focus on increasing sectoral diversity and strengthening the Irish owned sector.  Addressing the lower levels of assisted employment in the counties of the North West should also be a policy priority.

Download the two page WDC Insights, full WDC Report and/or 7 county profiles here