Posts

Regional Difference, Regional Strategies and a Ratio- employment and residence in towns in Ireland.

The National Planning Framework has a chapter on ‘Making Urban Places Stronger’ which covers settlements from cities to small towns.  In discussing Ireland’s urban structure (p58-59) it looks at population and employment and highlights a ratio of “jobs to resident workforce” as a key indicator of sustainability for a town.  Data is provided (in the NPF Appendix 2) on town population, resident workers and jobs in the town for 200 settlements with a population of over 1,500 people in 2016.  This is the only detailed data provided in the National Planning Framework.  It is useful to look at differences in the ratio across the regions to see if this indicator can help us better understand residence and employment as town functions.

The NPF suggests in the footnote to the discussion of this ratio that:

A ratio of 1.0 means that there is one job for every resident worker in a settlement and indicates a balance, although not a match, as some resident workers will be employed elsewhere and vice-versa. Ratios of more than 1.0 indicate a net in-flow of workers and of less than 1.0, a net out-flow. The extent to which the ratio is greater or less than 1.0, is also generally indicative of the extent to which a town has a wider area service and employment role, rather than as a commuter settlement. (Footnote 22 pg 176).

It suggests that those settlements with a high ratio of jobs to resident workforce are, by reason of accessibility, employment and local services, fulfilling important roles for a wider area.  This, as will be discussed later in this post, is particularly strongly indicated for towns in the North West.  Firstly, however, a scatter diagram (Figure 1) showing town size and the ratio of jobs to resident workers provides a good overview of the data.  For reasons of scale the five cities (Dublin, Cork, Limerick, Galway and Waterford) are not on this diagram but are discussed in more detail below.

Figure 1: Town Size and Jobs to Resident Workers by Regional Assembly Area.

Source: Project Ireland 2040 National Planning Framework, Appendix 2

The very different patterns among towns in the three regional assembly areas is clear in the diagram.  Towns in the Eastern and Midland Region tend to have lower ratios (most less than 1.0) with more workers leaving the town for jobs elsewhere than are travelling to the town.  In contrast towns in the Northern and Western Region, though generally smaller, are more often serving as centres of employment for their wider area.

As the NPF notes in relation to the North West, towns there tend to have ‘more significant employment and service functions relative to their regional and local catchment’ (p 59).  Table 1 below shows the ratio of jobs to resident workers for towns in the three Regional Assembly areas and the Western Region; the differences in the ratios again emphasise the different functions of towns in the Regions.

Table 1: Population, Resident Workers, Jobs and ratio of Jobs to Resident Workers in towns over 1,500 in three Regional Assembly areas and Western Region.

Source: Project Ireland 2040 National Planning Framework, Appendix 2 (Western Region own calculations)

The low ratio for towns in the Eastern and Midland indicates the importance of commuting for many towns and the dominance of the large Dublin City region.  Indeed only 2 towns in EMRA have ratios higher than 1.5.  These are Longford (1.596) and Athlone (1.591) both of which are on the periphery of the EMRA, less under the influence of Dublin, and both have important employment and wider service functions for their hinterlands.  In contrast, 40 towns in the EMRA (just over half) have a ratio of less than 0.5.  In the NWRA area, where there are 44 settlements with a population of more than 1,500,  7 towns have a ratio of more than 1.5 while 4 have a ratio of less than 0,5.  In the Southern Region, with three key cities, a quarter of towns (19) have a ratio of less than 0.5, while 7 towns (9%) have a ratio of greater than 1.5.

Looking at the Western Region (the area under the WDC remit), the overall ratio is very high (1.26) and of the 39 listed 7 have a ratio of more than 1.5 while four have a ratio of less than 0.5.

Cities and Key Regional Centres

Given the focus on the development of cities and a few key regional centres in the National Planning Framework, it is useful to examine the ratios for the five cities and these regional growth centres (Table 2).  Somewhat surprisingly, Dublin City and its suburbs has a ratio of only 0.978 despite being the major centre for the Region.  This is likely to be related to the location of the boundaries of the suburbs and the fact that there is a larger Dublin Region agglomeration which has a spread of job locations and worker flows to towns that are essentially part of a greater Dublin.

As expected, the other four cities have ratios greater than 1.0, with Galway the highest of these (1.302).  Looking at the proposed regional growth centres, Athlone, Letterkenny and Sligo all have high ratios indicating their importance as employment and service centres in their wider hinterlands.  In contrast Drogheda and Dundalk (which are mentioned in the NPF as part of a “Drogheda-Dundalk-Newry” cross border network) both have lower ratios. Drogheda, in particular, has many people travelling to work elsewhere.

Table 2: Population, Resident Workers, Jobs and ratio of Jobs to Resident Workers in Cities and Regional Growth Centres.

Source: Project Ireland 2040 National Planning Framework, Appendix 2, (EMRA towns in purple, NRWA in green and SRA in blue).

 

Patterns of employment and residence in the Western Region

Looking briefly at towns in the Western Region, Table 3 shows the settlements with the highest jobs to resident workers ratios in the Region.  There is no particular pattern relating to town size, but the top five are all ‘county towns’ and have particular local employment and service functions.  Other towns in the top ten often have key employers indicating the importance of employment spread.

Table 3: Population, Resident Workers, Jobs and ratio of Jobs to Resident Workers in ten Western Region settlements with highest jobs to resident worker ratios.

Source: Project Ireland 2040 National Planning Framework, Appendix 2 (NRWA in green and SRA in blue)

In contrast to the towns in the table above, Table 4 below shows the Western Region towns with the lowest job to resident worker ratios.  These are all ‘dormitory’ towns serving Galway, Sligo and Limerick.  These are the only towns in the Western Region which have a ratio of less than 0.5 indicating perhaps, aside from these, a more sustainable region in terms of commuting patterns.

Table 4: Population, Resident Workers, Jobs and ratio of Jobs to Resident Workers in five Western Region settlements with lowest jobs to resident worker ratios.

Source: Project Ireland 2040 National Planning Framework, Appendix 2 (NRWA in green and SRA in blue)

Conclusions

Understanding where people work and where people are most likely to travel to work is essential to our understanding of employment and economic activity in our Region.  The WDC will publish a detailed analysis of travel to work patterns and labour market catchments in the Western Region next month. It is based on data from Census 2016 will also provide a comparison the 2009 WDC study Travel to Work and Labour Catchments in the Western Region which used Census 2006 data.

The use of the jobs to resident workforce ratio in the NPF is interesting.  It is quite a restricted indicator but the variation in the ratio among towns of all sizes and across the different regions serves to emphasise that the individual employment and other characteristics of each town are the key to the town’s pattern of, and opportunities for, development.  Therefore a clear understanding of the functions and areas which each town can develop is important.

For the Western Region, the ratio has served to highlight the importance of towns of all sizes as centres of employment in the region, while in contrast it shows the importance of commuting to many towns in the East.  Thus, there is a need for very different regional strategies in relation to towns in the North West and in areas of other regions where the influence of the cities is not significant.

A strong argument is made throughout the NPF that concentration in larger cities and towns is essential, but this data indicates that, in the Western Region at least, smaller towns often have high jobs to resident workers ratios and they are attracting workers, probably from their rural catchments.  It is therefore important that we consider the case for ensuring a wider spread of employment across towns of different sizes and develop better policies to do so.  If there is too much focus on the largest cities we risk replicating the problems in the East, where many towns have little function other than as dormitories for the cities.

Locating jobs where workers reside, and supporting those urban centres which have important local and regional functions could be a more sustainable approach and perhaps would be easier to achieve than concentrating residence in the largest urban centres.

 

Helen McHenry

 

Commuting in the Western Region

Census 2016 results, Profile 6 has highlighted some key trends in relation to commuting patterns across the country. What are the trends in the Western Region and how do they compare with the national picture?

More commuting to work

The number of people living in the Western Region and commuting to work in 2016 was 306,359, an increase of 7.4% (21,136) since 2011, somewhat less than the national increase of 10.7% over the five year period.

Within the Western Region all counties experienced an increase in workers commuting though only Galway city experienced a rate of increase that exceeded the national average (11.7%). This was followed by County Galway (9.5%), Donegal (8.8%), Clare (7.4%) and Leitrim (6.3%). Counties Roscommon (6%), Mayo (4.4%) and Sligo (1.2%), all had increases, though well below the national average.

Travel to work in the Western Region

Commuting by car

  • Most commuters in the Western Region travel to work by car (72.4%[1]), either as a driver or passenger – less than 7% of car commuters are passengers. Nationally 65.6% of workers commute to work by car to work, a decrease from 66.3% in 2011. As the numbers at work has increased over the period, this indicates an even greater change than the percentage share might suggest.
  • In the Western Region the share travelling by car stayed the same – 72.4% since 2011, but as the numbers employed have increased (excluding not stated, by 21,478 or 7.4%)  it indicates a greater number of people in the Western Region are travelling by car than in 2011,(+15,816 or 7.5%) the opposite trend to that occurring nationally.
  • Within the Western Region, all counties had a minimum of 71% of commuters travelling by car, ranging from a high of 75% in Clare to 71.8% in Mayo. Only Galway city had a lower share of car commuters – 61.9% – reflecting the greater public transport availability and more walking and cycling options there.

Public Transport

  • In the Western Region the share of commuters using public transport increased from 1.8% in 2011 to 2.1% in 2016, while nationally, the share of commuters using public transport increased from 8.4% to 9.3%. All counties showed a percentage increase apart from counties Donegal and Mayo, though most change was marginal apart from Galway city.
  • All western counties had increases in the numbers both travelling by bus and train which given the extent of the train network in the region suggests many of those travelling by train are commuting to destinations outside the Region.

Cycling

  • In the Western Region, the share of those cycling to work increased from 1.1 to 1.3% between 2011 and 2016, while nationally the rate has increased from 2.3% to 3%. Within the Western Region all counties except Roscommon and Leitrim showed an increase in the numbers and percentage share of commuting by cycling to work.

Walking

  • Within the Western Region, there was a slight decline in the share of commuters walking to work, from 7.8% to 7.4%, though there was an actual increase of 440, obviously less than the rate of employment growth in the Region.
  • Nationally there was a decline in the share of commuters walking to work, from 9.9% to 9.3%, though this masks an actual increase of over 4,500 persons walking to work. Within the Region, Galway city has the highest rate of walking to work, 17.2% in 2016 up from 17% in 2011.

Longer journey times to work – more congested routes or longer distances travelled?

  • Of the over 300,000 people in the Western Region travelling to work, nearly 30% (29.9%) had a journey time of less than ¼ hour while a further 29.7% have a journey time of between ¼ and ½ hour, see Figure 1 below.
  • This indicates a majority of workers living in the Western Region (59.6%) have a journey time of less than ½ hour, less than in 2011 (61.9%) indicating people’s journey times have become longer.

Figure 1. Percentage Share of Working Population and Time Travelled to Work, 2016

Source: CSO statbank. Profile 6, Commuting Table E6023.

Nationally 52.2% of workers have a journey time of between ¼ and ½ hour in 2016, a decline in the share in 2011 of 55.9%. The extent to which people are travelling longer distances or travel times are longer, (because of congestion due to the greater numbers travelling), is less clear.

Within the Western Region, workers living in Galway city and Sligo have the shortest journey times, with 67.4% and 66.6% respectively with a travel time of less than ½ hour. Close to two-thirds of workers in Donegal (64.7%) and Mayo (63.8%) have journey times to work of less than ½ hour.

The share of commuters with journey times of less than ½ hour is less in the counties of Roscommon (59.7%), Clare (59.1%), Leitrim (55%) and County Galway (47.6%), indicating generally longer commutes for people living in these counties.

In the case of workers living in County Galway, 34.1% have a journey time of between ½ and 1 hour, while a further 8% have a journey time of between 1 hour and 90 minutes suggesting many are travelling some distance and/or travelling on congested routes into Galway city.

Further analysis, examining where people work and the extent to which they travel for work will be examined in forthcoming WDC policy analysis.

 

Deirdre Frost

 

[1] This excludes the ‘not stated’ category.

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

New WDC Publication: WDC Policy Briefing No.7 e-Working in the Western Region: A Review of the Evidence

The Western Development Commission (WDC) has published its latest Policy Briefing WDC Policy Briefing No.7 e-Working in the Western Region: A Review of the Evidence, which is now available for download at the following link here.

e-Work is a method of working using information and communication technology in which the work is not bound to any particular location. Traditionally this has been understood as working remotely from the office, usually from home, whether full-time or for a period during the working week. e-Working can provide particular opportunities in regions like the Western Region where many are living some distance from key employment centres.

The WDC Policy Briefing, which includes case studies from companies and individuals, examines:

  • The extent of e-Working.
  • The way in which weaker broadband access in more rural locations impacts on the rate of e-Working.
  • Factors driving e-Work.
  • Recommendations on how e-Working can be further promoted.

This Policy Briefing shows that e-Working is a widespread practice but somewhat hidden from official statistics. It also shows that while there is demand for greater e-working, broadband speeds need to be improved.

The WDC Policy Briefing contains recommendations to support more e-Working, including priority rollout of the National Broadband Plan to those counties with the lowest broadband speeds. Additional case studies are also available for download from here.

Deirdre Frost

E-Work and New ‘Work’

In a previous blog post, E-Working – what are the trends? I examined the data available on e-work, also termed tele-working. Much of the data, especially the trend data available from the Census, only measures those workers who work ‘mainly at or from home’ and as discussed this only captures a small element of the workforce which we know, frequently work from home.

Capturing the extent to which people e-work is related to how the question is phrased; so for example if the Census question was changed, to ask whether a person worked on one or even a ½ day per week basis, it is likely to significantly increase the number reporting that they are e-workers.

Rural E-working

A recent report commissioned by Vodafone and conducted by Amárach Research, Connected Futures (3.8MB) examined the extent to which broadband has influenced those working in rural Ireland. The research found that nearly one in four broadband users in rural Ireland uses the internet at home in relation to their work (about 430,000 people). Among those remotely accessing work from home, most use the internet to check email and organise their work diary. Nearly half use the internet at home to work on reports and presentations. These e-workers report that with internet access, they can avoid commuting to work, which the research indicates typically occurs about two days a week.

Entirely Home-based E-work

The use of communications technology and more importantly its widespread availability at home has allowed new forms of work to emerge.

An early use of home-based working which is conditional on the availability of a minimum level of broadband speed has been the outsourcing of work where the employee is entirely home-based. For example Amazon and Apple were reported as requiring applicants to have a minimum 5Mbps download speed for home based customer support jobs. This and the need for universal high speed broadband is discussed in the WDC Report, Connecting the West, Next Generation Broadband in the Western Region (Low Res 1.5Mb).

Enforced Flexibility

A new report, published last week by TASC, Enforced Flexibility? Working in Ireland Today, (609kb) discusses an emerging practice where employees work entirely from home, though not by employee choice. For at least one of the high tech multinationals an emerging practice is to place some of their customer service workers in their own homes.  While traditionally the choice to work from home was perceived as a positive option, in this case the decision was made by the organisation rather than the individual: it was not an option as there was no possibility of working in an office. (p.62).

E-working has generally been considered in a positive light from the employee perspective, enabling more flexibility in working hours which can be more family friendly, reduced commuting time as well as fuel and carbon savings. However the TASC report notes that e-working which is wholly and entirely conducted from home, without the option of working in an office may not offer the same degree of flexibility. Constantly online during their shifts they were subject to the same tight supervision as those based in a traditional call centre environment. While it is difficult to establish what proportion of customer service workers now work in this way, there is evidence that the numbers are growing (p.62). In some instances these employees are self-employed contractors even though they are entirely contracted to the one employer.

The ‘Gig economy’

Measuring the extent of e-work is further complicated by the changing nature of work. The evolution of communications technology which has enabled the increased possibility of e-work, has evolved even further to allow new forms of ‘work’ to emerge.

Broadband and online platforms have allowed the development of new types of work and service delivery variously termed the ‘gig economy’, ‘sharing economy’, ‘crowd working’ and ‘uberisation’. Previously ‘gigs’ were how musicians earned a living, now the ‘gig economy’ includes all those who rent out their property, possessions or services for a fee, all of which is managed online!

The ‘gig economy’ is another form of e-work as it relies on electronic communication, though with the increasing use and availability of smartphones and mobile broadband this type of e-work is often less tied to a fixed location, whether this is at home or elsewhere. The ‘gig economy’ can also be seen as entrepreneurial, allowing individuals to initiate a process of selling goods or services and increasing the potential for self-employment.

Much of this type of work and service delivery is likely to be more developed in large urban centres, with significant critical mass. So far, within Ireland, Uber is just in Dublin and Cork – though the IDA announced a significant jobs announcement by Uber  in Limerick earlier this year.

However while parts of the ‘gig economy’ are urban driven, it is by no means exclusive to it. Airbnb can operate anywhere and maybe very popular in more rural areas with more limited supply, especially in high season.

As a type of employment, the ‘gig economy’ has raised questions about workers’ rights and protections such as guaranteed income, health care and pensions. Hillary Clinton, US Presidential candidate, when outlining her economic plan noted, This on-demand, or so called gig economy is creating exciting economies and unleashing innovation. But it is also raising hard questions about workplace protections and what a good job will look like in the future.

Evidence of the ‘Gig Economy’

To what extent the ‘gig economy’ is changing the nature of work is not clear. Some argue that while more are choosing to earn income from this ‘gig economy’, it is not clear whether this is in the absence of another job or to supplement existing paid employment?

Research undertaken by the University of Hertfordshire has tried to quantify the extent of the ‘gig economy’ in both the UK and Sweden.

The research found that in the UK around 5 million people are engaged in the ‘gig economy’. In the UK online survey 21% say they have tried to find work managed via so called ‘sharing economy’ platforms such as Upwork, Uber or Handy during the past year, equivalent to around 9 million people or almost one fifth of the adult population. Around 1 in 10 (11%) of respondents said they had succeeded in doing so, equivalent to around 4.9 million people.

Almost a quarter (24%) of UK women responding to the survey claim to have sought work via online platforms, and one third (33%) of 25-34 year olds.

3% of respondents claim to find paid work via online platforms at least once a week, equivalent to around 1.3 million adults, with 4%, or around 1.8 million finding work at least once a month.

Main source of income or a supplement?

A quarter of all those workers in the ‘gig economy’ say they rely on this income as their sole or main source of income.

Only 10% of those workers in the ‘gig economy’ were students, a proportion that dropped to 6% among those working in the ‘gig economy’ weekly. This is in line with the general proportion of students in the adult population of the UK (at around 8%).

The range of work is extremely broad, from high-skill professional work at one extreme to running errands at the other. The most common type of work, undertaken by more than two thirds is office work, short tasks and ‘click work’ done online. However a significant proportion are doing professional work, creative work, providing taxi services or a range of other services in people’s homes.

Where is the ‘Gig economy’?

From a geographic perspective, the largest numbers are in England with one in five based in London, just under a quarter each in the South, the Midlands and the North with 7% in Scotland and 3% in Wales. This reflects the general distribution of the UK population.

The Swedish online survey found a similar pattern to the UK survey. In Sweden 12% are working in the so-called ‘sharing economy’ for platforms such as Upwork, Uber or Skjutsgruppen, equivalent to around 737,000 people. Twice as many people (24%) used such sites in the hope of finding work – equivalent to almost a quarter of the working age population.

Conclusions

E-work can describe a variety of employment types ranging from ‘traditional work’ conducted at home or on the move, through to occasional engagement in online activity to generate additional income.

This can include a traditional employment relationship between an employee and an employer with the employee working from home possibly one or two days per week. It can also include the ‘new’ types of work and service delivery associated with the gig economy’, where people are often self-employed.

E-working of all types and the more recent growth in online platforms which has enabled new forms of income generation are all dependent on the widespread availability of broadband. The research to-date indicates that this type of employment and income generation is a very significant and growing element of the economy and labour market. The evidence cited from rural areas suggest that online participation for work is as prevalent, if not more so than in urban areas. This reinforces the need for the universal availability of quality broadband, another reason for the speedy rollout of the Government’s National Broadband Plan.

Deirdre Frost

E-Working – what are the trends?

E-work or electronic working, also referred to as teleworking, are terms used to describe work which uses communications technology to work remotely from the office location.

With the widespread rollout of broadband services it might be expected that e-working is becoming more common. Is e-work more prevalent in urban or rural areas? To what extent does weaker broadband access in more rural locations impact on the rate of e-working? What are the other factors driving e-work?

What does the data say?

The evidence on e-working in Ireland is limited and complicated by different definitions.

Time series data is available from the Census and the most recent data available is from 2011. The 2011 Census asks whether one ‘works mainly at or from home’. Trend data shows that the level and share of those working mainly at or from home is in decline, as the chart below shows.

Chart 1. Population at work, population working mainly at or from home and share of working population working mainly at or from home

E-working trends

Source: CSO Census of Population: Statbank Interactive tables

In 1986 17.2% of workers were reported as working at or mainly from home and this had declined to 4.7% in 2011. However this includes those engaged in agricultural employment and the decline in numbers engaged in this sector would largely explain the overall decline.

In 2002, the CSO carried out a special survey on Teleworking, which examined the profile of teleworkers in Ireland across a range of characteristics. It distinguished between (1) those who work from home and (2) those who work from home and use a computer and (3) those who work from home and need a computer with a telecommunications link, this latter group are defined as teleworkers. This survey found that nationally 2.3% of those in employment were classed as teleworkers. It should be noted that these data exclude workers in the Agriculture, forestry and fishing sector.

More recently a survey conducted by UPC (3.41 MB) in 2014 found that 47% of Irish employees use the internet at home in relation to work, up from 45% in 2012.

Regional differences

There are regional differences recorded, for example in the CSO 2002 survey the Mid-East region recording the highest rate at 2.9%. This is followed by Dublin with 2.7% of those in employment classed as teleworkers. Commuting to Dublin is likely to be an important driver explaining the higher rate in the Mid-East. The lowest rate of teleworking was recorded in the Mid-West with a rate of 1.5% of all in employment classified as teleworking. The West region, comprising largely rural counties of Mayo, Roscommon and Galway, recorded a rate of 2.2% teleworkers as a percentage of those in employment, higher than might be expected if access to quality broadband was a key driver.

More questions than answers

The difference in e-working levels reported – from 2.3% in the CSO 2002 survey through to 47% employees from the UPC 2014 survey raise further questions. Definitional differences no doubt explain some of the difference, though it is also likely that excluding Agriculture, the trend is may be upward, as evidenced by the UPC findings.

The 2016 Census figures should be available next year and it will be interesting to identify trends, especially since the return to employment growth. In the meantime further analysis of Census 2011 data is planned, examining occupational, sectoral and regional differences.

Other aspects to be examined in forthcoming work by the WDC include positive benefits that can accrue from more e-working such as carbon savings through lower transport emissions, more family friendly working and greater opportunities for employment creation and retention in more rural locations.

 

Deirdre Frost

 

Image source:www.alliedworldwide.com

 


Rural Commuting to Urban Jobs

Data recently published by the WDC examines the extent of rural commuting to urban centres for work.

The WDC Policy Briefing No. 6 Commuting to Work, Rural Dwellers, Urban Jobs shows that over a third (35.5%) of workers live in rural areas, but just over a fifth of jobs (21.3%) are in rural areas.

This Policy Briefing shows that many rural dwellers commute to work over long distances and shows the importance of urban based employment as a very important element in sustaining rural communities. It highlights the need for job creation strategies to focus on where people live, in rural areas and towns across the country, and not just on the larger cities. Without greater efforts to disperse employment growth there is likely to be more pressure on rural dwellers to commute or move to take up jobs in the larger gateways.

The WDC Policy Briefing notes that

  • nearly one in five (19%) of all rural dwellers commute to work in one of the nine NSS gateways; and
  • one in four (24.4%) commute to work in towns
  • over a quarter of rural dwellers commuting to work in the Galway (25.6%) and Waterford (24.9%) gateways, work in IDA business parks
  • over 18% of rural dwellers commuting to work in Sligo work in IDA business parks

Based on analysis of Census 2011 Place of Work data (POWSCAR), the data show that across the country the most significant employment destination for rural dwellers is urban areas. These workers are profiled and case studies provide further insights.

The Policy Briefing can be downloaded from https://www.wdc.ie/wp-content/uploads/WDC_Policy-Briefing-no-6-Commuting-Final.pdf

Deirdre Frost

Note:

  • The Gateways are the nine National Spatial Strategy Gateways of Dublin, Cork, Limerick/Shannon, Galway, Waterford, Dundalk, Sligo, Letterkenny/(Derry) and Athlone/Tullamore/Mullingar.
  • Towns are those population centres of 1,500 and above and excluding the nine NSS gateways.
  • Rural is defined using the CSO classification where settlements with a population of less than 1,500 and open countryside are defined as rural.