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Regional Agency-Assisted Jobs 2017

In August the Department of Business, Enterprise & Innovation published the Annual Employment Survey (AES) for 2017.  This provides an analysis of employment in Industrial and Services companies under the remit of IDA Ireland, Enterprise Ireland and Údarás na Gaeltachta.  This type of employment is referred to as ‘agency-assisted’.

In 2017, total permanent, full-time employment (PFT) in agency-assisted companies in Ireland was 379,810.  This was an increase of 19,369 jobs (5.4%) on 2016, continuing the growth trend in evidence since 2011.  Part-time, temporary or contract employment in agency-assisted firms also increased by 1,796 jobs in 2017 and now stands at 48,221, the highest number recorded in the 10-year period.

Combining PFT and Temporary/Part-time jobs brings total agency-assisted employment in Ireland to 428,031 in 2017.  This was 19.5% of total employment in the country in that year (average employment of 2,194,150 across the year, based on CSO’s Labour Force Survey).

The AES data includes a detailed regional breakdown of agency-assisted employment by employment type and ownership in Appendix B.

Regional agency-assisted employment

We will begin by looking at the three larger regions of the Border, Midlands & West (BMW), South & East and Dublin.  All three initially experienced declines in assisted employment but have shown strong recovery since 2012 (Fig. 1). The South & East region has consistently been the largest, though in recent years as Dublin has grown more rapidly it has narrowed the gap somewhat.  Meanwhile the gap between the BMW region and the others has widened in recent years.

Fig. 1: Total agency-assisted employment in BMW, South & East and Dublin regions, 2008-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

To consider this in more detail, we’ll look at the BMW’s share of total agency-assisted employment in the State.  The BMW region’s share has followed a downward trend across all types of ownership (Fig. 2). For Irish-owned employment, its share fell from 27.1% in 2008 to 25.6% in 2017.  While for foreign-owned agency supported jobs, its share fell from 19.2% to 18.9% over the 10-year period though it was higher during 2011-2014.  The region has consistently accounted for a higher share of all Irish-owned employment than of foreign-owned.

Fig. 2: BMW region’s share of total national agency-assisted employment, 2008-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

At the more detailed regional level (Fig. 3) the share of total agency-assisted employment in each region changed between 2008 and 2017.  Dublin’s share of total assisted jobs grew steadily from 34.4% in 2008 up to 37.6% in 2017.  The second largest region is the South West and its share also grew from 14.8% to 16.3%.  While the South East was third largest in 2008, by 2017 the West had moved into third position, with the South East dropping to fifth.  Only three regions – Dublin, South West and West – had a higher share of total employment in 2017 than in 2008.

Fig. 3: Percentage of total national agency-assisted employment in each region, 2008, 2012 and 2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

 

While the share of total assisted employment located in several regions declined, all regions experienced growth in their actual number of agency-assisted jobs between 2008 and 2017 (Fig. 4). Clearly the South West (36.3%), Dublin (34.6%) and West (27%) (influenced by Cork, Dublin and Galway cities) had very strong growth over the 10-year period, with the South East (5.1%) and Mid-East (7%) performing least well.  This helps to explain their deteriorating relative positions.

Looking at the most recent performance (2016-2017), Dublin, the Mid-West and South East had the strongest growth, up 6.2% in the year. While most other regions had growth of around 5% the Mid-East actually saw a decline in agency-assisted employment in the year.

Fig. 4: Percentage change in total agency-assisted employment in each region, 2008-2017 and 2016-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

Regional employment by type

Data is provided on two types of employment – Permanent, full-time and Temporary, part-time or contract employment (referred to as ‘Other’).  The percentage of total employment that is ‘Other’ has generally increased over the 10-year period, though with considerable volatility.  Nationally 11.3% of total employment in 2017 is ‘Other’ compared with 9.1% in 2008.

At 13.4% the West region has the highest share of Temporary/Part-time/Contract employment in 2017 and the share has been increasing since 2015.  In Dublin however, which has the next highest share (12% in 2017), it has been declining (Fig. 5). At 8.9% the Mid-East has the smallest share of ‘Other’ employment.

Fig. 5: Percentage of total agency-assisted employment that is temporary, part-time or contract employment in each region, 2008-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

Regional employment by ownership  

The balance between foreign and Irish-owned agency assisted employment differs substantially at regional level (Fig. 6). The three regions with the largest number of agency-assisted jobs, and also the strongest growth during 2008-2017 (South West, West and Dublin) have the highest shares of foreign-owned employment at over 57% in 2017.  The Mid-West is the other region where the majority of assisted jobs are foreign-owned.

The Midlands and Border regions have the lowest shares of foreign-owned employment and therefore the largest shares of Irish-owned employment. Two-thirds of assisted jobs are in Irish companies.

Fig. 6: Percentage of total agency-assisted employment in foreign-owned and Irish-owned firms in each region, 2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

Fig. 7 shows that over the 10-year period, the South West, Dublin and West all had 40+% growth in agency-assisted foreign-owned jobs.  At 21.5% the Border also had strong growth in such jobs, though from a lower base.  In contrast, the Mid-East and Midlands both experienced a fall in foreign-owned assisted employment.

It should be noted that some of the changes in job numbers by ownership may be due to a transfer of ownership e.g. an Irish company bought by a foreign company or a foreign company becoming an Irish company through a management buy-out etc.  When a company changes ownership, jobs in that company are re-classified as Irish or foreign and the changes back-dated to previous years.

Irish-owned assisted jobs grew across all regions during 2008-2017, most strongly in the Mid-East somewhat compensating for declining foreign-owned employment.  The South West, Dublin and Midlands also had around 20% growth in Irish-owned assisted jobs with the South East and Border regions performing worst.

Irish-owned assisted employment out-performed foreign-owned in three regions (Mid-East, Midlands and Mid-West). In the case of the West, growth in foreign-owned assisted jobs was over three times greater than growth in Irish-owned assisted jobs, in Dublin and the South West it was about double.

Fig. 7: Percentage change in total agency-assisted employment in foreign-owned and Irish-owned firms in each region, 2008-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

Over the past year (Fig. 8), all regions experienced growth in both foreign and Irish-owned assisted employment, except for foreign-owned jobs in the Mid-East. The South East (9.4%) and Dublin (7.2%) had strong growth in foreign-owned jobs with the Mid-East, Midlands and Border performing least well.  For Irish-owned jobs, the Mid-West, West and Midlands performed strongly.

In general there was less regional variation in the performance of Irish-owned assisted employment compared with foreign-owned.  Irish-owned firms out-performed foreign-owned in all regions except the South East, Dublin and South West.

Fig. 8: Percentage change in total agency-assisted employment in foreign-owned and Irish-owned firms in each region, 2016-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

Conclusion

The strong growth trend evident in agency-assisted employment for the past number of years continued in 2017. All regions had a greater number of agency-assisted jobs in 2017 than they had in 2008.  There were considerable regional variations however, with the South West, Dublin and the West experiencing extremely strong jobs growth over the decade, substantially driven by foreign-owned companies, which led to their combined share of total assisted jobs increasing from 58.5% in 2008 to 63.5% in 2017. These three regions also have the highest shares of foreign-owned employment and two of them (West, Dublin) have the highest shares of Temporary/Part-time employment.

While all other regions have also seen growth in the numbers working in agency-assisted firms, this has been at a substantially lower level. The Mid-East and Midlands actually have fewer jobs in foreign-owned assisted firms in 2017 than they had in 2008, though growth in Irish-owned assisted jobs compensated for this, leading to overall growth.  The Border and Midlands show the highest shares of Irish-owned assisted employment and in the past year (2016-2017) Irish-owned firms out-performed foreign-owned in these two regions, as well as in the West, Mid-West and Mid-East.

While the foreign-owned sector has been a strong driver of assisted employment growth, especially in the Dublin, South West and West regions and in the initial stages of the recovery, the Irish-owned sector has responded strongly in more recent years and shows a more even geographical spread.

Pauline White

City Led Regional Development and Peripheral Regions- Conference Report

The Regional Studies Association Irish Branch Annual Conference was held in the Institute of Technology Sligo on Friday 7th September.  Appropriate for the location, it had the theme “City Led Regional Development and Peripheral Regions”.  The presentations are available here.

Figure 1: Dr Chris O’Malley from Sligo IT

The conference covered a range of themes relating to regional development and how urban areas interact with their rural regions.  It was opened by Dr Chris O’Malley from Sligo IT who discussed the role of Sligo IT in the development of industry and manufacturing in the region and the IT’s role as an integrator of national policy at regional level.  Dr Deirdre Garvey, chairperson of the Western Development Commission, welcomed delegates to the conference noting how pleased the WDC was to be sponsoring the Annual Conference.  She also welcomed the fact that the conference was taking place in the North West, given the recognition in the National Planning Framework of the specific challenges for the region and how the National Planning Framework (NPF) and Regional Spatial and Economic Strategy (RSES) process highlight the distinct challenges and opportunities for our predominantly rural region.

These addresses were followed by a very interesting session on the history of Irish planning over the last 50 years.  Dr Proinnsias Breathnach (Maynooth University) presented on regional development policy following the 1968 Buchanan report and its impact on industry locations and spatial development.  Dr Breathnach also presented the paper by Prof. Jim Walsh (Maynooth University) who was unable to attend the conference.  He examined the influence of both the Buchanan report and the 2002 National Spatial Strategy, considered the learnings from these and the factors which will influence the success of the National Planning Framework process.  Finally in this session, Prof. Des McCafferty (University of Limerick) presented on the structural and spatial evolution of the Irish urban hierarchy since Buchanan, and examined urban population data over time and the distribution of population across the settlement hierarchy.  He noted that it was important to understand changes projected by the NPF in the context of historic trends

Figure 2: Dr Proinnsias Breathnach (Maynooth University), Prof. Des McCafferty (University of Limerick) and Deirdre Frost (WDC)

After coffee the session on Regional Strategy and Planning covered a broad range of topics.  Louis Nuachi (DIT) presented on the importance of social and cultural objectives in town planning using a case study of planning in Abuja, the capital of Nigeria.  David Minton, the CEO of the Northern and Western Regional Assembly (NWRA) discussed issues for the development of the North and West in the RSES, some of the historic development of the region and a number of the challenges in developing a region wide approach.  Finally in that session, John Nugent (IDA) discussed the IDA role in attracting Foreign Direct Investment to the region and some of the important factors which influence the location of FDI, including the importance of having a strong indigenous sector already in place and the ways the indigenous and foreign sectors are mutually beneficial.

After lunch international perspectives were provided by Dr Andrew Copus from the James Hutton Institute in Aberdeen and Professor Mark Partridge, the C. William Swank Chair of Rural-Urban Policy at The Ohio State University.

Dr Copus paper  The Scottish City Region Deals – A rural development perspective noted that optimistic assumptions about how a wider functional region benefits from city investments, are commonplace and generally unquestioned, despite meagre evidence of such impacts.   He discussed the two strands of ideas on policy for urban rural development that of polycentricity and rural urban co-operation (theories which are stronger in EU countries and in OECD work), and City Regions (which have tended to have more focus in the UK).  He highlighted the importance of defining what is meant by rural when considering the impact of such regional policies and  he discussed the development and implementation of regional policy by the Scottish and UK governments in Scotland.

He noted that in general in these deals the dominant rationale relates more to “Smart Specialisation” than to any kind of urban rural cooperation, interaction or spread effect concept, but the way growth deals developing for rural areas of Scotland will fit into the Post Brexit rural development landscape remains to be seen.

Figure 3: Audience at the conference

Prof. Mark Partridge’s paper Is there a future for Rural in an Urbanizing World and Should We Care? noted how rural areas have received increased attention with the rise of right-wing populist parties in Western countries, in which a strong part of their support is rural based. Thus, bridging this rural-urban economic divide takes on added importance in not only improving the individual livelihoods of rural residents but in increasing social cohesion.

He discussed the background of rural and peripheral economic growth, noting the United States is a good place to examine these due its spatial heterogeneity.   He showed that, contrary to public perceptions, in the US urban areas do not entirely dominate rural areas in terms of growth.  Rural US counties with greater shares of knowledge workers grow faster than metro areas (even metros with knowledge workers).

He had some clear suggestions for regional policy, noting that governance should shift from separate farm/rural/urban policies to a regional policy though a key issue is to get all actors to participate and believe their input is valued. In rural development it is important to leverage local social capital and networks to promote good governance and to treat all businesses alike and avoid “picking winners.  Rural communities should be attractive to knowledge workers and commuters, while quality of life, pleasant environment, sustainable development; good public services such as schools are important to attract return migrants.  Building local entrepreneurship is key too and business retention and expansion is better than tax incentives for outside investment.

Figure 4: Dr Chris Van Egeraat (Maynooth University)

In the final session ‘Understanding Regional and Urban Dynamics’ I gave a presentation on what regional accounts can tell up about our regional economies and discussed some of the issues associated with the regional data and the widening of disparities among regions.  Dr Chris Van Egeraat (Maynooth University) presented a paper, written with Dr Justin Doran (UCC) which used a similar method to Prof. Partridge to estimate trickle down effects of Irish Urban centres and how they influence the population in their wider regions.  Finally Prof. Edgar Morgenroth (DCU) presented on the impacts of improvements in transport accessibility across Ireland highlighting some of the changes in accessibility over time and noted that despite these changes human capital is the most important factor influencing an area’s development.

While the conference had smaller attendance than previous years there was good audience participation and discussion of the themes.  The conference papers are now available on the WDC website here and will shortly be available on the RSA website.

 

Helen McHenry

The changing face of export sector jobs

The nature of Ireland’s exporting sector – and jobs in that sector – has been changing over the past decade (or more), with an ever expanding role for international services. The shift towards a greater share of service jobs is of course evident across the entire economy, but is particularly noticeable in the exporting sector as an increasing number of new job announcements are service-based. The so-called Silicon Docks area of Dublin is where this pattern can be most clearly seen.

Is this change in the nature of export sector jobs occurring to the same extent in the Western Region? To analyse what’s happening at a regional and county level, we’ll use the Annual Employment Survey 2014 conducted by the Department of Jobs, Enterprise & Innovation (special run of county data). This counts all jobs in companies which have received any assistance from Enterprise Ireland, IDA Ireland or Udarás na Gaeltachta (which are primarily exporting companies).

Assisted jobs – Manufacturing v Services

Comparing the broad sectoral structure of agency assisted jobs in 2005 (Fig. 1) shows how the pattern differed between the Western Region and the rest of the state. In 2005, 77.4% of assisted jobs in the Western Region were in manufacturing, with Traditional and Modern Manufacturing both having a similar share of around 30%. In the rest of the state, a lower share (66.7%) was in manufacturing. The pattern of a greater role for manufacturing in the Western Region’s export sector was firmly in place at that time.

Fig. 1: Total agency assisted jobs in each broad sector in the Western Region and Rest of the State, 2005 (DJEI, 2015, Annual Employment Survey 2014, special run)

Fig. 1: Total agency assisted jobs in each broad sector in the Western Region and Rest of the State, 2005 (DJEI, 2015, Annual Employment Survey 2014, special run)

By 2014 (Fig. 2) the pattern in the rest of the state had changed substantially with manufacturing’s share declining to 54.4% of jobs. Whereas the balance between manufacturing and services changed very little in the Western Region with manufacturing still accounting for 74.7% of export employment. The share of export service jobs only rose slightly from 22.6% to 25.3%.

Fig. 2: Total agency assisted jobs in each broad sector in the Western Region and Rest of the State, 2014 (DJEI, 2015, Annual Employment Survey 2014, special run)

Fig. 2: Total agency assisted jobs in each broad sector in the Western Region and Rest of the State, 2014 (DJEI, 2015, Annual Employment Survey 2014, special run)

In the rest of the state, in 2005 the ratio of manufacturing to international services jobs was exactly 2:1 but by 2014 it had shifted far closer to 1:1. For the Western Region however manufacturing continues to dominate export sector jobs at a rate of 3:1.

While the total share of export jobs in manufacturing in the Western Region changed little between 2005 and 2014, the composition of those jobs has changed. Modern Manufacturing has greatly increased its share of assisted jobs to 35%, while the shares of both Traditional and Primary/Agri-food manufacturing declined. The decline in Traditional Manufacturing in particular was closely tied to declining demand from construction, although more recent figures show some recovery in elements of this sector such as precision engineering.

The growing role for Modern Manufacturing indicates an improving level of technology and value in the region’s manufacturing sector which can be seen by the role of manufacturing in the region’s GVA.   In the latest GVA figures for the West region, 40.2% of its GVA came from Manufacturing – the second highest share nationally with only the South West having a higher share. In the Border it was 28.4%. See the WDC’s recent report on regional income and output.

Dominance of manufacturing in export businesses in western counties

This pattern of greater dominance of manufacturing in the export sector jobs profile is even stronger in some individual western counties (Fig. 3). In Mayo, Roscommon and Sligo over 85% of assisted jobs are in manufacturing. While its share declined slightly between 2005 and 2014 in these counties, overall there was little sign of growth in international services employment in these areas.

Donegal and Leitrim are the western counties with the lowest shares of their export sector jobs in manufacturing, but both are still above the rest of state average. The strong increase in the share of assisted jobs in manufacturing in Leitrim between 2005 and 2014 mainly resulted from a decline in international services jobs, a pattern which can also be seen to a lesser extent in Clare.

Among the western counties, Donegal and Galway showed the most significant declines in the share of jobs in manufacturing and consequent rise in the share of international services jobs between 2005 and 2014. These two counties appear to be the ones most closely following the national trend towards a greater role for international services.

Fig 3 Agency assisted jobs in manufacturing 2005-2014

Fig. 3: Total agency assisted jobs in manufacturing in western counties, 2005 and 2014 (DJEI, 2015, Annual Employment Survey 2014, special run)

Manufacturing activity remains the dominant driver of export sector jobs in the Western Region, at a rate of 3:1, with over 90% working in the sector in some counties. While the role of international services is growing, this is occurring to a far lesser extent in the Western Region.

Addressing issues of significance to the manufacturing sector, such as transport infrastructure, freight, engineering skills, energy, heat etc, must remain central to efforts to sustain and grow the region’s export base, both foreign and indigenous, within the national context of a growing focus on service sector jobs. At the same time, any barriers to the growth of the international services sector, such as high speed broadband, need to be investigated and addressed.

Pauline White

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

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!

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

Worrying trend in the North West’s assisted jobs performance

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

New Regional FDI Targets

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

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

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