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Administrative, Entertainment & Other Services rely on local demand from businesses & consumers, but potential to expand international activity

The Western Development Commission (WDC) has just published the latest in its series of Regional Sectoral Profiles which analyse employment and enterprise data for economic sectors in the Western Region.  This report examines the Administrative, Entertainment & Other Services sector, and two publications are available:

This sector includes three sub-sectors which provide services to both businesses and individuals:

  • ‘Administrative & Support Services’ primarily provide ‘outsourced’ type business services (property management and landscaping, contract cleaning, ‘back office’ business processing/call centres, recruitment, leasing and security) but it also includes travel agents and tour operators;
  • ‘Arts, Entertainment & Recreation’ (creative arts, cinemas, gyms, sports activities, amusements, museums and gambling); and
  • ‘Other Services’ (hairdressing and beauty, laundry, repair services, funeral services, unions and business groups and domestic staff) mainly provide services to individuals and households.

Given the wide scope of this sector, it is particularly important to consider differences across the sub-sectors. Some of the key findings from the analysis are:

Sector plays a smaller role in Western Region’s labour market

Administrative, Entertainment & Other Services account for a smaller share of total jobs in the region than nationally (Fig. 1); 6.5% of total employment compared with 7.5%.  Large urban centres and global business services activity around Shannon influence its relative importance across western counties.

The region experienced lower jobs growth in this sector than elsewhere between 2011 and 2016 (8.9% compared with 13.6%).  As this sector relies heavily on local demand, slower economic recovery in the region was a factor in this.  Nevertheless as this sector grew more than total jobs in the region (7.5%), it contributed to the region’s jobs recovery.

Fig. 1: Percentage of total employment in Administrative, Entertainment & Other Services in Western Region and state 2016. Source: CSO, Census 2016: Summary Results Part 2, Table EZ011

High and growing self-employment

This sector in the region is characterised by a high rate of self-employment, both compared with elsewhere (27.6% in region v 21.5% in state) and with other sectors. This is particularly the case in more rural counties and for locally provided services (38.1% of all employment in ‘Other Services’ is self-employment).

The number of self-employed in this sector in the region increased by 19.4% (2011-2016), the highest growth across all sectors, as many individuals responded to growing demand by setting up small-scale service businesses (e.g. gyms, barbers, HR services, phone repair).  Continuation of existing, and the development of new initiatives and soft supports, to support self-employment, including addressing issues of the quality and viability of some self-employment, is important particularly in smaller urban centres and rural areas where self-employment can be a key pathway to work.

Important contribution to town centre renewal

As online retailing grows, the availability and choice of local personal and recreational services is central to attracting people to visit and remain in town centre locations.  Facilitating such services, many of which are provided by sole traders and micro-enterprises, should be integral to local plans for town centre renewal.

At 11.2% of all employment Bundoran has the highest share working in this sector of Ireland’s 200 towns and cities (1,500+ population), largely due to ‘Arts, Entertainment & Recreation’ (Fig. 2).  Carndonagh (10.4%) and Ballyshannon (10.2%) are also in the top 10 towns in Ireland.  Shannon meanwhile has the second highest share working in ‘Administrative & Support’ in the state.

Fig. 2: Percentage of total employment in Administrative, Entertainment & Other Services in towns in the Western Region, 2016. Source: CSO, Census 2016: Profile 11 – Employment, Occupations and Industry, Table EB030

The structure of the sector in the region differs from the national picture

The mainly locally traded personal and leisure services are more important for employment in the region, with less activity in business services (Fig. 3).  The single largest employment activity is ‘Hairdressing & Beauty’ which is significantly more important in the region than the state, the next largest is ‘Services to buildings & landscape’, followed by ‘Sport, amusement & recreation’. The greater importance of locally provided services means the sector relies more heavily on local demand and disposable income.

Fig. 3: Percentage of total Administrative, Entertainment & Other Services employment in each broad sub-sector in Western Region and state, 2016. Source: CSO, Census 2016: Summary Results Part 2, Table EZ011

Some of the implications of this are:

  • ‘Administrative & Support’ less developed but with growth potential: The ‘Administrative & Support’ sub-sector accounts for a lower share of total employment (see Fig. 3) and enterprises (33.5% of all AEOS enterprises v 35.8%) in the region than the state and also experienced lower growth. There is an opportunity to further develop this sector in response to increased outsourcing and strong growth in global business services.  High quality communications infrastructure and property solutions, as well as improved accessibility and the availability of suitable talent are important factors.  Within the region the Shannon Free Zone is a nationally significant location for global business services (e.g. aircraft leasing, e-commerce outsourcing).  Strengthening this cluster to adapt to technological change, meet emerging skill needs and increase collaboration are among the actions needed to support this key regional asset.
  • Local ‘Other Services’ more important and in particular for rural counties: These services largely rely on local demand and respond strongly to disposable income.  As they are often consumed at the same location as they are supplied (e.g. hairdressing, dry-cleaning, nail bars), they play a particularly important role in the local economy of towns and villages.   This sector however is generally quite low paid (at €17.13 per hour ‘Other Services’ has the second lowest average hourly earnings of all economic sectors.[1])  The greater importance of this sub-sector in the employment profile of the region therefore reduces the overall economic benefit of the sector to the regional economy.
  • Role of ‘Arts, Entertainment & Recreation’ in the regional economy is growing: It experienced the strongest employment (13.6%, 2011-2016) and enterprise (12.6%, 2011-2016) growth in the region, in both cases expanding more than nationally. This sector is highly responsive to local disposable income with tourism a key driver. This is clear from its importance in locations such as Bundoran, Strandhill and Clifden.  The Western Region is recognised as having a strong creative and cultural industries sector, as well as tourism industry. The WDC has supported the creative sector’s development through a range of initiatives[2] and the recent Regional Enterprise Plan for the West region[3] included it among its strategic objectives. Adopting a coordinated approach is critical to help realise the growth potential of the creative industries.

For more detailed analysis, including of enterprises in the sector and agency assisted jobs, download Administrative, Entertainment & Other Services in the Western Region: Regional Sectoral Profile here

Pauline White

 

[1] Only ‘Accommodation & Food Service’ is lower. CSO, Earnings, Hours and Employment Costs Survey Q4 2018, Table EHQ03

[2] See https://www.wdc.ie/regional-development/creative-economy/

[3] Department of Business, Enterprise & Innovation (2019), Regional Enterprise Plan to 2020: West Region

Home-Based Working in the Western Region

The Western Development Commission (WDC) has published its latest WDC Insights Home-Based Working in the Western Region,

download here (267 KB):, which is the third in a series examining the current nature of work, focussing on work which is often home based.

Working at or from home can take different forms:

  • The WDC Policy Briefing No.7 e-Working in the Western Region: A Review of the Evidence (download here – PDF 748KB), examined the extent of e-working in the Western Region, examining those in traditional employer-employee relationships, but who work from home, whether full-time or for a period during the working week. This form of working is also illustrated with several case studies of the practice, (download here – PDF 484KB).
  • The second publication in the series, WDC Insights ‘New Work’ – the Gig economy in the Western Region, (download here – PDF 254KB), examined the nature of the gig economy and the extent to which it exists in the Western Region.
  • This WDC Insights on Home-Based Working in the Western Region examines the data on those people who work ‘mainly at or from home’ derived from the Census question ‘how do you usually travel to work?’ with one of the answers being ‘work mainly at or from home’
  • According to the Census, nationally, in 2011[1] excluding those working in the Agriculture, forestry & fishing industries[2], the share of the state’s working population reported as working mainly at or from home was 2.8% (47,127).

In the Western Region the share was higher with 3.2% (8,994) stating they worked mainly at or from home.

There is a higher rate of self-employment in the Western Region and this is likely to be a contributory factor.

  • Those working mainly at or from home represent a broad range of workers; the self-employed, employees, ‘gig’ workers and e-Workers across a broad range of sectors. They may have very little in common except their place of work, which is less visible than traditional work places.

Better data is needed to capture and measure the incidence of all types of work so as to ensure that our policy focus is not limited to the traditional workplace-based employer-employee relationship.

Policies are needed to support all employment types and evidence of the nature and extent of work that occurs in the home is required to inform this.

 

Deirdre Frost

[1]Census of Population 2011, the most recent Census data available. Census 2016 data will be available in September 2017.

[2] The rest of the data presented in this WDC Policy Briefing exclude those working in the Agriculture, forestry & fishing industries, in order to understand the prevalence of e-working in the wider economy. The WDC wish to thank the CSO for a special run of data excluding those working in the Agriculture, forestry & fishing industries.

Census 2016- Understanding Change in the Western Region

The Summary Results (Part 1) of the 2016 Census of Population were released last week (6th April), with information on population, and corrections to the preliminary results, as well as a number of other statistics giving an overall picture of Irish society.  The infographic below, produced by the CSO, provides a picture of the data available.

A CSO report with maps and charts on key statistics is available here  and a presentation on highlights of the data release is available here .

This post discusses some of the information available for the Western Region based on  data provided at county level.  As more detailed Profiles become available we will be able to present more information at Region, County and ED levels.

What is the population of the Western Region and how has it changed since 2011?

Since the release of the Preliminary Results which was discussed here  the population in most Western Region counties has been amended (in most cases it has been increased slightly, although Galway City population has been reduced)[1].  A notable change is that Sligo had, in the preliminary results, a marginal population decrease between 2011 and 2016 but in this corrected data it has actually shown a slight population increase.

The Western Region population was 828,697 people in April 2016.  The population of the region increased by 7,817 people since 2011 (0.95%). In contrast, between 2006 and 2011 there was an increase of 57,516 persons or 7.5% in the population of the Western Region.

The state population in April 2016 was 4,761,865. It increased by 173,613 persons (3.8%) between 2011 and 2016   (Table 1).

Two counties in Ireland, both in the Western Region (Donegal (-1.5%); Mayo (-0.1%)) experienced population decline over the period.  The highest population growth in the Western Region was in Galway City (4.2%) while Galway County also grew (2.4%).  Clare had the next highest population growth (1.4%) while both Leitrim (0.8%) and Roscommon (0.7%) had very small population growth.

Table 1: Population in 2011 and 2016 of western counties, Western Region and rest of state[2]

Source: CSO, Census of Population 2016 Summary Results part 1, EY004: Population and Actual and Percentage Change 2006 to 2016 by Sex, County and City, Census Year and Statistic   

 

Differences in Male and Female Populations

In all counties (and in the Western Region and the State) there was higher growth in the female population than the male population (See Table 2).  In the Western Region there was a 1.6% increase in the female population and 0.3% in the male population.  For the rest of the state the difference was not so pronounced (males 3.6%; females 4%).  Donegal was the only county to experience a decline in its female population.

Table 2:  Percentage Change in County Population 2011-2016 Male and Female

Source: CSO, Census of Population 2016 Summary Results part 1, EY004: Population and Actual and Percentage Change 2006 to 2016 by Sex, County and City, Census Year and Statistic   

 

This difference in the patterns of male and female population growth relates in large part to different patterns of migration and more detailed information will be available on this in Profile 2 (Population Distribution and Movement, release due 11 May) and Profile 7 (Migration and Diversity, release due 21 September).  However, Table 3 below shows the differences in the male and female population in each county (using the standard measure of males per 100 females).  As would be expected, because women live longer, in the oldest age category (75+) there are significantly fewer males than females.  What is more unexpected is that the 30-44 age category has fewer men than women (unlike the age categories above and below it).  This indicates significant male migration in this age category.  Again, as more detail becomes available the different patterns can be better understood.  Galway City consistently has more females than males across the age categories.

Table 3: County breakdown of men per 100 women by age group, 2016

Source: CSO Summary results Census 2016 Part 1, Figure 3.8

 

In this Census 2016 Summary Report the population is not available at ED level.  It is expected that this will be contained in the forthcoming release for Profile 2- Population Distribution and Movements on 11th May.  Similarly, while the Summary Report discusses urban and rural population the detail is not provided at county level.

Population Age and Dependency

Some information is provided about age and the map below shows the difference in average age across Ireland.  The average age in the state is 37.4 but the average age is higher in more rural counties of the West and North West and in Kerry and Tipperary.  In fact Kerry and Mayo have the highest average age (both 40.2) followed closely by Leitrim (39.8), Roscommon (39.7) and Sligo (39.2) while the youngest is in Fingal at 34.3 years.

Source:  CSO Summary results Census 2016 Part 1, Map 3.1

 

It is useful to examine the dependency ratios in the Western Region.  Dependents are defined for statistical purposes as people outside the normal working age of 15-64.  Dependency ratios are used to give a useful indication of the age structure of a population with young (0-14) and old (65+) shown as a percentage of the population of working age (i.e. 15-64).

Nationally, the total dependency ratio was 52.7% while that in the Western Region was, as would be expected, higher at 57.4%.  Leitrim had the highest dependency ratio of any county at 62.6 per cent, closely followed by counties Mayo (61.0%), Roscommon (60.8%) and Donegal (60.5%).  The lowest dependency ratios were in Galway city at 39.0 per cent, followed by Cork city (42.8%), Fingal (50.7%) and Kildare (51.4%).

Looking into the make up of this greater dependency the old age and young dependency ratios are shown in Figure 1.  Galway County has the highest young dependency in the region (36.1%) while Galway City has the lowest in the region (23.4%).  Most counties in the Western Region (except Sligo) have higher young dependencies than the State as a whole (32.3%) in part because of the loss of working age population through migration.  Similarly most Western Region counties also have higher old age dependencies than the state (20.4%) with Galway City once again the exception (15.6%).  The highest old age dependency is in Mayo (28.3%)

Figure 1: Old Age and Young dependency Ratios in the Western Region and State, 2016

Source: CSO, Census of Population 2016 Summary Results part 1, EY004

 

Conclusion

Over the coming months to December 2017 data from Census 2016 will be released under various headings.  This important information gives us the opportunity to better understand our region and its characteristics.  It is essential for policy and decision making, as well as to our understanding the differences among regions in relation to a variety of issues such as economic output, social transfers and the demand for different goods and services.  We look forward to analysing the future releases and to providing a better understanding of the Western Region throughout 2017.

 

Helen McHenry

 

[1] The Preliminary Results are based on the summary sheet for the Census form while this release is based on the information in the complete Census form.

[2] Rest of state refers to all the counties in the state except for the seven counties of the Western Region.

 

Key Issues for the National Planning Framework – Submission from the WDC

The WDC  made its submission on Ireland 2040 – Our Plan: National Planning Framework   yesterday.  The Issues and Choices paper covered a wide range of topics from national planning challenges to sustainability, health, infrastructure and the role of cities and towns.  A key element of the paper considered the future in a “business as usual” scenario in which even greater growth takes place in the Dublin and Mid East region with consequent increased congestion and increasing costs for businesses and society, while other parts of the country continue to have under-utilised potential which is lost to Ireland.  The consultation paper therefore sought to explore the broad questions of alternative opportunities and ways to move away from the “business as usual” scenario.

The WDC submission considers these issues from the perspective of the Western Region, the needs of the Region, the opportunities its development presents for Ireland’s economy and society as a whole and the choices, investments and policy required to achieve regional growth and resilience.

This post highlights the key points made in the submission.  The complete, comprehensive submission on the National Planning Framework by the WDC can be read here (4.5MB PDF).  A shorter summary is available here (0.7MB PDF).

 

What should the NPF achieve?

  • The National Planning Framework (NPF) provides Ireland with an opportunity to more fully realise the potential of all of its regions to contribute to national growth and productivity. All areas of Ireland, the Capital and second tier cities, large, medium and small-sized towns, villages and open countryside, have roles to play both in the national economy and, most importantly, as locations for people to live.
  • While spatial planning strives for ideal settlement or employment patterns and transport infrastructure, in many aspects of life change is relatively slow; demographics may alter gradually over decades and generations and, given the housing boom in the early part of this century, many of our existing housing units will be in use in the very long term. If the NPF is to be effective it must focus on what is needed, given current and historical patterns and the necessity for a more balanced pattern of development.
  • To effectively support national growth it is important that there is not excessive urban concentration “Either over or under [urban] concentration … is very costly in terms of economic efficiency and national growth rates” (Vernon Henderson, 2000[1]). Thus it is essential that, through the NPF, other cities and other regions become the focus of investment and development.

Developing Cities

  • As the NPF is to be a high level Framework, in this submission the WDC does not go into detail by naming places or commenting on specific development projects, as these will be covered by the forthcoming Regional Spatial and Economic Strategies (RSES). The exception to this, however, is in relation to the need for cities to counterbalance Dublin.  In this case we emphasise the role of Galway and the potential for Sligo to be developed as the key growth centre for the North West.
  • The North West is a large rural region and Sligo is the best located large urban centre to support development throughout much of the North West region. With effective linkages to other urban centres throughout the region and improved connectivity, along with support from regional and national stakeholders, Sligo can become a more effective regional driver, supporting a greater share of population, economic and employment growth in Sligo itself and the wider North West region.

Developing Towns

  • While the NPF is to be a high level document and the focus is largely on cities it is important not to assume that development of key cities will constitute regional development. All areas need to be the focus of definite policy, and the NPF should make this clear.
  • While cities may drive regional development, other towns, at a smaller scale, can be equally important to their region. Recognising this is not the same as accepting that all towns need the same level of connection and services.  It is more important to understand that the context of each town differs, in terms of distance and connectivity to other towns and to the cities, the size of the hinterland it serves and its physical area as well as population.  Therefore their infrastructure and service needs differ.
  • Towns play a central role in Ireland’s settlement hierarchy. While much of the emphasis in the NPF Issues and Choices paper is on cities and their role, for a large proportion of Ireland’s population small and medium-sized towns act as their key service centre for education, retail, recreation, primary health and social activities.  Even within the hinterlands of the large cities, people access many of their daily services in smaller centres.  The NPF needs to be clear on the role it sees for towns in effective regional development.

Rural Areas

  • Rural areas provide key resources essential to our economy and society. They are the location of our natural resources and also most of our environmental, biodiversity and landscape assets.  They are places of residence and employment, as well as places of amenity, recreation and refuge.
  • They are already supporting national economic growth, climate action objectives and local communities, albeit at a smaller scale than towns and cities. But a greater focus on developing rural regions would increase the contribution to our economy and society made by rural areas.
  • The key solution to maintaining rural populations is the availability of employment. It is important that the NPF is truly focused on creating opportunities for the people who live in the regions, whether in cities, towns or rural areas.

Employment and Enterprise

  • In the Issues and Choices paper a narrow definition of ‘job’, ‘work’ and ‘employer’ as a full-time permanent employee travelling every day to a specific work location seems to be assumed. This does not recognise either the current reality of ‘work’ or the likely changes to 2040. Self-employment, the ‘gig’ or ‘sharing’ economy, contract work, freelancing, e-Working, multiple income streams, online business are all trends that are redefining the conceptions of work, enterprise and their physical location.
  • If the NPF mainly equates ‘employer’ with a large IT services or high-tech manufacturing company, many of which (though by no means all) are attracted to larger cities, then it will only address the needs of a small proportion of the State’s population and labour force.
  • Similarly the NPF must recognise the need to enable and support the diversification of the Irish economy and enterprise base. It must provide a support framework for indigenous business growth across all regions and particularly in sectors where regions have comparative advantage.

Location Decisions

  • While job opportunities are a critical factor in people’s decision of where to live, they are by no means the only factor. Many other personal and social factors influence this decision such as closeness to family (including for childcare and elder care reasons), affordability, social and lifestyle preferences, connection to place and community.
  • Many people have selected to live in one location but commute to work elsewhere or, in some cases, e-Work for a number of days a week. The NPF needs to recognise the complexity of reasons for people’s location decisions in planning for the development of settlements.

Infrastructure

  • New infrastructure can be transformative (the increase in motorway infrastructure in recent decades shows how some change happens relatively quickly). Therefore it is essential that we carefully consider where we place new investments.  To do so, capital appraisal and evaluation methods determining the costs and benefits of different investment projects need to be re-examined if we are to move from a ‘business as usual’ approach.
  • Investment in infrastructure can strongly influence the location of other infrastructure with a detrimental impact on unserved locations. The North West of the country is at a disadvantage compared to other regions with regard to motorway access. This situation will be compounded if investment in rail is focused on those routes with better road access (motorways) in order for rail to stay competitive, or if communications or electricity networks are developed along existing motorway or rail corridors.
  • The WDC believes that the regional cities can be developed more and have untapped potential, however better intra-regional linkages are needed. The weaker links between the regional centres – notably Cork to Limerick and north of Galway through to Sligo and on to Letterkenny, are likely to be a factor in the relatively slower growth of regional centres in contrast to the motorway network, most of which serves Dublin from the regions.

Climate Change

For the future, the need to move to a low carbon, fossil fuel free economy is essential and needs to be an integral and much more explicit part of the NPF.  The National Mitigation Plan for Climate Change is currently being developed, and it is essential that actions under the NPF will be in line with, and support, the actions in the Mitigation Plan.

How should the NPF be implemented?

  • While much of the role of the NPF is strategic vision and coordination of decision-making, in order for the Framework to be effective it is essential that the achievement of the vision and the actions essential to it are appropriately resourced. The Issues and Choices paper does not give a detailed outline of how the NPF implementation will be resourced, except through the anticipated alignment with the Capital Investment Programme.
  • It should be remembered that policy on services and regional development is not just implemented through capital spending but also though current spending and through policy decisions with spatial implications (such as those relating to the location of services). Therefore it is essential that other spending, investment and policy decisions are in line with the NPF rather than operating counter to it.
  • While the NPF is to provide a high level Framework for development in Ireland to 2040, it seems this Framework is to be implemented at a regional level through the RSES. The Framework and the Strategies are therefore interlinked yet the respective roles of the NPF and the RSES are not explicit and so it is not evident which areas of development will be influenced by the NPF and which by the RSES.
  • In order to ensure that the NPF is implemented effectively it is important that there is a single body with responsibility for its delivery and that there is a designated budget to help achieve its implementation.

 

It is expected that a draft National Planning Framework document will be published for consultation in May.  Following that a final version of the Framework will be prepared for discussion and consideration by Dáil Éireann.

 

As mentioned above the full WDC submission on the Issues and Choices paper Ireland 2040 Our Plan- A National Planning Framework is available here (PDF 4.5MB) and a summary of key point and responses to consultation questions is available here (PDF 0.7MB).

 

 

Helen McHenry

[1] http://www.nber.org/papers/w7503

How is the Western Region doing?

On 31 January, the WDC was invited to give a presentation to officials of the Department of Social Protection working across the Western Region. The objective was to give an overview of the WDC’s analysis of data across a range of socio-economic issues.

Analysing regional data provides information on the areas for which we are responsible and highlights the multi-dimensional nature of the concept of regional development.  A regional perspective is necessary since changes and inequalities not only occur among individuals but also the places where they live

This (very) comprehensive presentation analyses the following indicators:

  1. Population: Preliminary Census 2016 Results
  2. Labour Market: QNHS Q1 2016, special run
  3. Income: County Incomes & Regional GDP, 2013-2014
  4. Enterprise: Business Demography, 2014

These are some of the key points emerging from the analysis.

Population

  • Population of Western Region grew +0.9% 2011-2016 compared with +3.7% growth nationally.
  • Three counties in the Western Region showed population decline 2011-2016 –(Donegal -1.5%, Mayo -0.2% and Sligo -0.1%) – only counties in Ireland to do so. In addition Leitrim and Roscommon had the lowest growth.  Galway city had 5th highest population growth in Ireland.
  • Every county in Ireland had a positive natural increase (more births than deaths) during 2011-2016. Donegal, Sligo and Mayo however had enough negative net migration to lead to population decline.
  • All western counties, and all but six areas nationally, had negative net migration between 2011 and 2016. Donegal and Sligo had the two highest rates of negative net migration.
  • Male out-migration considerably higher than female leading to a +1.5% increase in the female population of the Western Region and only +2% growth in the male population.
Figure 1: Percentage change in population by administrative area, 2011-2016. CSO (2016), Preliminary Results Census 2016

Figure 1: Percentage change in population by administrative area, 2011-2016. CSO (2016), Preliminary Results Census 2016

Labour Market

  • The Western Region’s labour force declined marginally (-1.2%) between 2007 and 2016. Within this the male labour force fell by -6.1% while the female rose by +5.7%.
  • The Western Region has a lower share of its labour force aged under 35 years and a higher share aged over 44 Its labour force participation rate is lower for both men and women, and across all age groups (except 65+).
  • Total employment in the region fell by -5.8% 2007-2016 compared with a -6.5% decline in the rest of the state (all counties outside Western Region)
  • There has been exceptionally strong growth in self-employment in the Western Region since 2012, increasing by +31.1% in the region compared with +7.2% in the rest of the state.
  • Growth of self-employment tied to sectoral pattern of growth with strongest jobs growth since 2012 in Agriculture, Construction, Accommodation & Food Service and Wholesale & Retail, all with high self-emp
  • Since 2012 the Western Region has had jobs decline in 7 out of 14 sectors, in the rest of the state there was only decline in 1 out of 14. Jobs recovery in the Western Region is not as diversified across the economy as elsewhere and more concentrated in domestic sectors
  • Unemployment numbers declining steadily in region, but share of long-term unemployment growing. Western Region has higher unemployment rate in all age groups (except 65+ & 25-34) and particularly among youth.
Figure 2: % change in employment by sector in Western Region and Rest of State, 2012-2016. CSO, Quarterly National Household Survey, Q1 2012-2016, special run

Figure 2: % change in employment by sector in Western Region and Rest of State, 2012-2016. CSO, Quarterly National Household Survey, Q1 2012-2016, special run

Income

  • Disposable income per person in the Western Region was €17,260 in 2013 (92.3% of State). Provisional 2014 figures show some growth (€17,768) but still well below the 2008 peak (€21,167).
  • Longer term, the gap is narrowing, the Western Region had disposable income of 84.3% of State in 1995, 92.3% of State in 2013.
  • Within the Western Region, Roscommon had a significantly lower income relative to the State in 2014 (87.2%) compared with 2005 (95.8%). Clare has also fallen relative to the State starting at 95.5% in 2005 and dropping to 93.3% in 2014. Sligo, Galway, Mayo and Donegal have all improved their position relative to the State since 2005, albeit with some variation. Galway and Sligo had greatest improvements.
Figure 3: Index of disposable income per person in western counties, 2005-2014 (Index State=100). CSO, County Incomes and Regional GDP 2013, provisional 2014

Figure 3: Index of disposable income per person in western counties, 2005-2014 (Index State=100). CSO, County Incomes and Regional GDP 2013, provisional 2014

Gross Value Added

  • Dublin region is the only region where the preliminary 2014 GVA per person figure is higher than the peak GVA per person in 2007. None of the other regions have recovered to the 2007 level, though the difference in the West region is slight.
  • Dublin and Mid-East and South West, only regions with a greater share of national GVA than share of persons at work.
  • In 2005 there were 60.6 index points between the lowest GVA per person in a region (Midland, 65.4) and the highest (Dublin and the Mid-East, 126.0).  In 2014 the difference between Midland (59.2) and Dublin and the Mid-East, (130.6) was 71.4 index points (71.3 in 2013).
Figure 4: Index of GVA per person by region, 2005-2014 (Index State=100). CSO, County Incomes and Regional GDP 2013, provisional 2014

Figure 4: Index of GVA per person by region, 2005-2014 (Index State=100). CSO, County Incomes and Regional GDP 2013, provisional 2014

Enterprise

  • The share of enterprises nationally that are based in the Western Region is declining and was 17.1% of the total in 2014.
  • Construction, Wholesale & Retail, Professional activities and Accommodation & Food Service are the largest enterprise sectors in the region. Less than 5% of the region’s enterprises are in Financial & Insurance and Information & Communications combined.
  • There has been a far greater decline in enterprise numbers in the Western Region than the rest of the state since 2008 and the region had a weaker performance – greater decline or lower growth – in every sector (ex. real estate).
  • The enterprise base differs across more urban and rural counties. Highly rural counties of Roscommon, Mayo and Donegal have 34-36% of enterprises in Industry and Construction but in more urban counties of Clare and Sligo it is around 30%.  A higher share of enterprises in Galway and Sligo are active in knowledge services sectors, though even Galway is below national average. Local services play a larger role in more rural counties.
  • Western counties had among the greatest losses of enterprises since 2008. Donegal lost more than 1 in 3 of its Construction firms; Wholesale & Retail declined most strongly in Donegal and Clare; Accommodation & Food Service declined across most counties.
  • Knowledge services performed best, though from a low base.
Figure 5: % change in number of active enterprises by sector in Western Region & Rest of State, 2008-2014. CSO, Business Demography, 2014

Figure 5: % change in number of active enterprises by sector in Western Region & Rest of State, 2008-2014. CSO, Business Demography, 2014

The full presentation can be downloaded here  (PDF, 2MB)

 

Pauline White & Helen McHenry

Business Demography

The WDC has just published its analysis of the CSO Business Demography data (2011) which shows there were nearly 31,000 active enterprises operating in the Western Region. At 0.057 the average number of enterprises per working age person in the region was lower than that in the rest of the state (0.062).

Overall the Western Region’s enterprise base was more significantly damaged by the recession than elsewhere. Between 2006 and 2011 the decline in enterprise numbers in the Western Region was nearly twice that in the rest of the state (-18.4% compared with -9.8%).  The region’s largest enterprise sectors experienced the greatest declines.

Some sectors did show growth. Enterprise numbers in ‘education’, ‘information and communications’, ‘real estate’ and ‘professional, scientific and technical activities’ increased. While growth in these knowledge intensive sectors is very welcome, they continue to be less important to the region’s enterprise profile.

The Western Region has a less diverse enterprise profile than the rest of the state. It has a higher share of enterprises in sectors that mainly serve local, domestic or tourist markets, while knowledge intensive services account for a lower share of the region’s businesses. The region’s more urban counties tend to have greater enterprise diversity, with rural counties’ economies more concentrated by sector.

A WDC Insights summary or a more detailed WDC Report on the Business Demography data can be downloaded from https://www.wdc.ie/publications/reports-and-papers/

Pauline White

Note: This report was completed in late July, prior to the very recent publication of the data for 2012. The WDC’s analysis of the 2012 Business Demography data will be published soon.