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The Public Administration & Defence Sector in the Western Region

The Western Development Commission (WDC) has just published the 9th in its Regional Sectoral Profile series which analyse employment in different economic sectors in the Western Region.

And this one is of particular interest to us, as it’s the sector we work in!  The report examines the Public Administration & Defence sector which includes all those working in the civil service, local authorities and state agencies, as well as Gardaí, prison officers and the defence forces.  It does not include those working in Education[1], Health & Care[2] or ‘semi-state’ companies e.g. Bus Eireann.

Two publications are available:

Employment in the Western Region

According to Census 2016, 18,858 people worked in Public Administration & Defence in the Western Region.  It plays a somewhat greater role in the region’s labour market than nationally (Fig. 1) accounting for 5.6% of total employment compared with 5.3%.

There is considerable variation across western counties and at 8.4%, Roscommon has the highest share working in Public Administration & Defence in Ireland with Leitrim (7.9%) second highest and Sligo (7.5%) fourth. Donegal is also in the top ten nationally.  North Connacht and the North West have high reliance on the public sector to sustain employment, partly due to more limited job options in the private sector.  In addition to Public Administration & Defence, Sligo and Leitrim also have the highest shares in Ireland working in Health & Care while Donegal has the highest share working in Education.

In contrast, at just 3.6% Galway City has the lowest share of its residents working in Public Administration & Defence in Ireland, with Galway County (4.6%) also in the bottom ten nationally.  Greater economic and employment diversity around Galway reduces this sector’s relative importance.

Source: CSO, Census 2016: Summary Results Part 2, Table EZ011

During 2011-2016, the Western Region experienced a 7.4% decline in the number working in Public Administration & Defence, greater than the 6.3% decline nationally.  In both cases this decline contrasted with overall jobs growth.  This period was characterised by a moratorium on recruitment in the public sector.

Every western county, except Clare (+3.9%), saw a decline over this period.  Donegal (-14.2%), Galway City (-12.5%) and Mayo (-10.1%) saw particularly large losses.  One factor would have been reduced staffing in their respective local authorities which are significant employers, as well as declines in the defence forces.

Employment in western towns

In 2016 there were 40 urban centres with a population over 1,500 in the Western Region. The relative importance of Public Administration & Defence as an employer varies across these towns (Fig. 2).  It is important to note that commuting is a particular issue when considering towns and this data refers to residents of the town.

At 11.4% (53 people) Lifford (county town of Donegal) has the highest share working in Public Administration & Defence in the region and second highest of Ireland’s 200 towns and cities (1,500+).  Lifford shows the potential jobs impact of locating the administrative centre of an area away from that area’s main economic centre both to support development in smaller towns and also to ease congestion in larger centres.

Strandhill in Co Sligo (9.4%, 75 people) and Roscommon town (9.2%, 208 people) were next highest in the region and third and fourth highest nationally. Except for Galway City and Ballina, the region’s larger (10,000+) urban centres all have around 7% working in this sector. Many host local authority head offices as well as offices of Government Departments and state agencies.  The very low share in Galway City is due to the wider range of alternative job options as well as the role of surrounding commuter towns e.g. Athenry.

Source: CSO, Census 2016: Profile 11 – Employment, Occupations and Industry, Table EB030

Of the 38 towns in the region for which data is available for both 2011 and 2016,[3] 28 of them experienced a decline in the number working in Public Administration & Defence between 2011 and 2016, nine had an increase with one unchanged.  Bearna (18.5%, +5 people) and Gort (15.8%, +6 people), had the largest percentage growth possibly due to commuting to Galway City or Ennis as several of the other towns which grew are also commuter towns e.g. Strandhill, Sixmilebridge, Moycullen.  In absolute terms, Ennis (6%, +40 people) had the biggest increase in the number of residents working in the sector.

Many more towns experienced decline than growth however. Clifden had the largest decline (-49.1%, -26 people) and was also the town with the largest population decline of all western towns. Ballyhaunis, Ballybofey-Stranorlar, Castlerea and Loughrea also experienced large declines. These are all medium-sized rural towns, at some distance from larger urban centres.

Employment by gender

Overall, employment in Public Administration & Defence is quite gender balanced.  In the Western Region women account for a small majority (51.4% are women) in contrast to the state where there is a male majority (52.4% are men).  The female share has been higher in the region than nationally throughout the past two decades.

In terms of the sector’s relative importance to total male and female employment (Fig. 3), 6.2% of all working women and 5.1% of all working men in the Western Region work in Public Administration & Defence.  While the sector plays a notably more significant role in total female employment in the region than nationally (6.2% v 5.4%), its importance to male employment is the same.

In all areas the sector accounts for a greater share of all women’s jobs than men’s.  In Leitrim (9.4%), Roscommon (9.2%) and Sligo (8.9%) Public Administration & Defence plays a critical role in total female employment.  More limited options for alternative professional career opportunities, particularly in more rural areas, increases the role of Public Administration & Defence in women’s employment.

For male employment, Roscommon (7.6%) is where the sector is most important by quite some margin.  This may reflect the nature of some public sector employment in the county e.g. Castlerea prison.  Again, neighbouring Leitrim (6.6%) and Sligo (6.2%) is where it is next most important for men’s jobs, while it is least important in Galway.

Source: CSO, Census 2016: Summary Results Part 2, Table EZ011

The period 2011 to 2016 saw both male and female employment in Public Administration & Defence decline by 7.4% in the region.  For both, this was a greater decline than nationally with the difference greater among women (-7.4% in the Western Region v -5.8% in the state) than men (-7.4% v -6.7%).

Key Policy Issues

Higher reliance on public sector employment in the Western Region: Public Administration & Defence is a more significant employer in the Western Region than nationally (5.6% of total employment v 5.3%) and this is the case to an even greater degree for the two other predominantly public sectors of Health & Care and Education.  The three primarily public sectors of employment jointly account for 28% of all jobs in the Western Region (24% in the state).

This is also reflected in income earned.  Recent analysis by the CSO[4] found that 41.7% of earned income by employees living in Sligo came from Public Administration & Defence, Education and Health & Care combined, the highest share in Ireland, followed by Leitrim (37.8%) and Donegal (37.8%).  The spatial pattern is very vividly illustrated by Fig. 4.  This higher reliance means that developments, such as the moratorium on public sector recruitment, had a greater economic and employment impact in the region.

Fig. 4: Proportion of earned income from Public Administration & Defence, Education and Health & Care combined, 2016

Source: CSO, (2019), Geographical Profiles of Income in Ireland 2016, Map 6.8

 

Important role in female employment: Public Administration & Defence is a more important source of female employment in the region compared with nationally and the gap widened over the past two decades as women’s employment in the region became increasingly dependent on this sector. This is particularly true in more rural counties with 9+% of women in Leitrim, Roscommon and Sligo working in public administration.  Such employment may help maintain the viability of household income, particularly during a recession when there are large private sector job losses e.g. in construction.  Future trends in public sector employment will have a greater impact on female than male employment levels.

Providing professional career opportunities in smaller towns and more rural areas: Public Administration & Defence plays a critical role in providing professional career opportunities, including in more rural areas and smaller towns where there may be fewer alternatives.  North Connacht and the North West, which is the more rural part of the Western Region, has particularly high reliance on the sector (see Fig. 4).  More limited private sector job options increases this sector’s impact on the local economy.  While the main focus for Public Administration & Defence policy must be on the provision of quality public services, it parallel role as a provider of jobs, particularly in smaller towns and rural areas, should also be a factor in policy decisions on the location of such jobs.

Contribution to achieving regional and rural development: As was highlighted in a previous WDC study ‘Moving West’[5] the location of Public Administration & Defence employment is a key policy tool at the disposal of Government. The relocation of public sector offices and jobs from Dublin to other locations has considerable potential to both stimulate development in these areas and to ease pressures on the capital.  The Government, national and local, can therefore play a very direct role in delivering the regional development objectives of the National Planning Framework (NPF) through its location decisions.  Lessons learned from previous relocations, as well as technological developments to facilitate more dispersed work locations, can contribute to implementing such moves.

For more detailed analysis see ‘The Public Administration & Defence Sector in the Western Region: Regional Sectoral Profile’.

Pauline White

 

[1] See WDC (2019) The Education Sector in the Western Region: Regional Sectoral Profile

[2] See WDC (2018) The Health & Care Sector in the Western Region: Regional Sectoral Profile

[3] Two towns with a population above 1,500 in 2011 (Portumna and Bunbeg-Derrybeg) dropped below in 2016. Two towns (Collooney and Convoy) rose above the 1,500 threshold in 2016.  There were also town boundary changes between 2011 and 2016 for 15 of the 40 towns in the Western Region which has an impact when considering change over time. For most towns the impact was relatively minor, however there was a quite substantial change for Ballina.

[4] CSO (2019), Geographical Profiles of Income in Ireland 2016

[5] WDC (2008), Moving West: An Exploratory Study of the Social and Economic Effects of the Relocation of Public Sector Offices to Towns in the Western Region

Recent Trends in Regional GDP

With the Irish economy again experiencing a period of significant expansion (it is estimated to have grown by 6.7% in 2018) it is important to consider how different Irish are regions doing in this time of growth.  While this was examined for the three Assembly regions (Eastern and Midland, Southern and Northern and Western) in a previous post using Eurostat data, we now have the opportunity to consider economic growth and prosperity, as measured by GDP, for the smaller regions.

Regional GDP data (NUTS3 regions) for 2016, with preliminary figures for 2017 was published in April, so in this post we consider the most recent information, as well as looking back to 2008, and observing the regional patterns of recession and growth in the last decade.  While income data is available at county level (discussed for the Western Region in a previous post) the GDP and GVA data[i] is only available at regional level.  The Western Region, under the WDC’s remit includes the entire West region and three of the five counties in the newly delineated Border region (Louth is now included with the Mid East as discussed here).  Clare is part of the Mid West and unfortunately data for the Mid West has been suppressed in the CSO publication for reasons of confidentiality.  In charts for this post the Mid West and South West (also suppressed) have been combined for the years 2015-2017.

When comparing regions of very different sizes GDP per person is the most useful measure (total GDP and regions share of the national economy will be discussed in the next post on this topic). Figure 1 illustrates the very significant differences in GDP among regions.  In both 2016 and 2017 the lowest per capita GDP was in the Border region (€21,446 in 2016) followed by the Midland[ii] (€23,417 in 2016) and the West (€29,798 in 2016).

 

Figure 1: Regional GDP per person 2016 and 2017 (estimated)

a Data for 2015, 2016 and 2017 suppressed in MW and SW for reasons of confidentiality, b Preliminary

Source: CSO, 2019, County Incomes and Regional GDP, Table 9a, Mid West and South West own calculations based on Table 9 and Table 13, 13a

 

In contrast, the Mid West & South West  had the highest per capita GDP (this is a combined region as data for the two regions was suppressed) at €80,758 in 2016 which is almost four times greater than that in the Border region.  There are some unusual factors underlying this growth which are discussed in detail here.  Dublin, when considered alone had the highest GDP per person at (€81,184) in 2016 (though not in 2017) but it is shown here with the Mid East as much of the Dublin GDP is produced by workers living the Mid East (discussed here) and so considering the two region’s GDP together, when examining the per capita data gives a more realistic picture.  The very high levels of GDP per person in these regions (with large populations and significant economic output) bring GDP person in the State was €57,650 in 2016.

While 2017 figures are preliminary it is nonetheless interesting to look more closely at the growth rates most recent two years for which data is available.  According to this measure (GDP at current market prices) the economy of the state grew by 4.1% between 2015 and 2016, and 7.6% between 2016 and 2017.  Interestingly, the South East showed the highest annual growth (17.7%) between 2015 and 2016 with the Mid East next highest (12.8%) followed by Dublin at 9.7%.  The economy of the Border region grew by 6% but regional GDP decreased in the West by 6.1% between 2015 and 2016 and by 3.7% in the Midland region.  Surprisingly, as the South West was one of the regions with the most significant growth in 2015 the Mid West & South West economy contracted in that year by 3.6%.  The economy in all regions  grew in 2017 (except the Midland which contracted by 0.7% in the year and by 4.3% in total since 2015) with the biggest growth in Dublin (12.6%).  The West also showed a year on year recovery (5.3%) but still is estimated to have a smaller economy in 2017 than 2015 (by 1.1%).

 

Figure 2: Percentage change in Regional GDP between 2015 and 2017

b preliminary figure; MW & SW, own calculations

Source: CSO, 2019, Table 9   GVA per Region at Current Market Prices (GDP), 2008 to 2017

 

Looking back over a longer period, the very significant differences in patterns of growth are evident (Figure 3).  Dublin, which was always the largest economy, has grown more rapidly than other regions since 2012, while the Mid West & South West combined show the impact of the very significant level shift in GDP which occurred in 2015 (and is discussed in more detail in this post Leprechauns in Invisible Regions: Regional GVA (GDP) in 2015)

Figure 3: GDP per person in NUTS 3 regions 2008-2017

a Data for 2015, 2016 and 2017 suppressed for reasons of confidentiality, b Preliminary

Source: CSO, 2019, County Incomes and Regional GDP, Table 9a, Mid West and South West own calculations based on Table 9 and Tables 12,13, 13a

 

Other Regions had more modest growth, but both the South East and the Mid East have recovered well since the recession.  This is shown more clearly in Figure 4.  The economy of the Border region is estimated to be 0.8% smaller in 2017 than 2018 and the Midland region is 0.4% smaller. The economy of the West region grew modestly (10.6%) during the ten year period.  These regions clearly have not benefited from the recovery and growth in economic activity experienced in other regions.  The economies of the Mid West and South West combined have more than doubled in size (118% growth) between 2008 and 2017, while the Dublin economy grew by more than 50%.

Figure 4: Growth and decline in regional economies GDP since 2008.

Source: CSO, 2019, CSO, 2019, County Incomes and Regional GDP, Table 9 GVA per region at current market prices (GDP) 2008-2017, own calculations

 

Given the very different growth rates in the regional economies, there has been significant divergence among regions since 2008 and in particular since 2012.  The divergence is shown clearly over time when looking at how each of the region compares to the State average.  This is done using an Index with the State in each year equal to 100 (Figure 5).  In 2008 only two regions (Dublin and the South West) were above the state average, and the difference between the highest (Dublin) and the lowest (Border) was 85 points.  By 2017 Dublin and the combined region (Mid West and South West) were above the state average, and the other regions remained below, with the difference between the highest (again Dublin) and the lowest, (the Border) now 111 points.  By 2017 the Border, (36.1%) and the Midland region (37.5%), were significantly lower than the state average, while GDP per person in the Dublin region is 47% more than the state average.  The West, which has the strong economic driver of Galway, had a GDP per person of 72.5% of the state average in 2008 and 50.6% by 2017.

Figure 5: Index of GVA per person (Basic Prices) for each region 2008-2017, State=100

Source: CSO, 2019, County Incomes and Regional GDP, Table 10, MW & SW own calculations.

 

Along with this divergence in economic activity among regions within the State, it is interesting to look at the pattern in relation to the EU28.  Figure 6 shows GVA in the State relative to the EU28 increased from 129% of the EU28 average in 2008 to 178% in 2017.  The Dublin region grew even more strongly (from 188.7 in 2008 to 262.3 in 2017).  The West, which was 95.7% of the EU28 average in 2008, peaked in 2012 at 107% of the EU28 average, but has since fallen back to 90%.

Figure 6: Index of GVA per person (Basic Prices) for each region and state 2008-2017, EU28=100

Source: CSO, 2019, County Incomes and Regional GDP, Table 11, MW & SW own calculations.

 

Similarly the Border region which was 79% of the EU average in 2008 had decreased to 64.3% in 2017.  Clearly these regions are not just falling behind in relation to the state average, they are also diverging from the EU average, which is a cause for concern.  As discussed in this post A Tale of Three Regions: GDP in the new NUTS2 Regions it also has implications for the status of the regions in relation to cohesion funding and the Border Midland and West NUTS2 region will revert to Transition Region status from 2021.

Conclusion

GDP is the key measure of a how region’s economy is doing and is one of the important indicators of regional wellbeing[iii].  But the data shows that divergence in regional GDP is increasing, with some regions are experiencing very rapid economic growth while others, especially those in the Western Region (the Border region and the West) along with the Midland region are experiencing more modest growth and even contraction.

Given the significant growth of the national economy this is an important time to address issues in lagging regions such as the infrastructure deficits and other structural economic issues and to incentivise regional employment growth and make it easier for new businesses to establish and existing enterprise to survive.

Regions are the drivers of modern economic systems and all regions have the potential to thrive and to contribute to the national economy. However, because success breeds success some regions do this more effectively than others. Less advantaged regions will benefit if policy is focused on ensuring that they too can reach their potential. With the economic upturn, regional policy must be prioritised, it is a waste of talent and opportunity not to realise all regions’ potential.  It is to be hoped that the Ireland 2040 project can achieve this.

 

Helen McHenry

 

[i] GDP is Gross Domestic Product, GDP and GVA are the same concept i.e. they measure the value of the goods and services (or part thereof) which are produced within a region or country. GDP is valued at market prices and hence includes taxes charged and excludes the value of subsidies provided. GVA at basic prices on the other hand excludes product taxes and includes product subsidies. See background notes 

[ii] Although the Midland Region has consistently one of the lowest GVA per person, and Dublin and the Mid East the highest, the fact that GVA is measured where it is produced and the population is counted where people reside, means that those commuting from the Midland region of Dublin and the Mid East are contributing to the GVA of that region (which is why for GDP per person Dublin and the Mid East are often shown as combined for per capita data), while they form part of the denominator in the Midland region, so increasing the GVA of one and reducing that in the other.

[iii] Discussions of GDP inevitably must also consider on the limitations of the statistic as a measure of economic development (see here ) but it is the key statistic used, despite shortcomings.  As Eurostat notes here GDP per capita does not provide an indication as to the distribution of wealth between different population groups in the same region, nor does it measure the income ultimately available to private households in a region

200th WDC Insights blog post – Our Top 5!

It is hard to believe but this is our 200th post since the Policy Analysis team’s WDC Insights blog was first launched on 25th July 2014. Over the last (almost) five years and 200 posts we have addressed everything from labour market to climate change, broadband to county incomes, demography to electricity and much more in between.

We’ve tackled mysterious questions (Understanding rural transport statistics: Why are there so many new cars in county Roscommon?[1]) and pressing issues (Energy and Climate Action- the WDC View of the Draft National Plan); assessed the regional impacts of national trends (Leprechauns in Invisible Regions: Regional GVA (GDP) in 2015) and policies (WDC submission to Ireland 2040-Our Plan, the Draft National Planning Framework); analysed Census data (Census 2016: Housing In Ireland – What has been happening in the Western Region?) and explained changing statistical classifications (Nuts about NUTS!). And of course there’s our annual Christmas Quiz!

So of our 200 posts so far, what have been the most popular…?

Number 5: How are we doing?  GDP of Irish Regions in 2014

From April 2017, How are we doing?  GDP of Irish Regions in 2014 by Dr Helen McHenry is among our annual posts analysing CSO data on county incomes and regional GDP.  The analysis in this post showed the increasing dominance of Dublin and the South West in terms of their combined share of national GDP, with the share accounted for by other regions reducing over time, a trend that has continued.

Number 4: Preliminary Results of Census 2016 for Co Roscommon

Presenting our analysis to stakeholders is a key part of the work of the WDC’s Policy Analysis team and Preliminary Results of Census 2016 for Co Roscommon, from December 2016, summarised the main points from a presentation by Pauline White to the Roscommon Local Community Development Committee (LCDC). It outlined the key preliminary Census results for the county on population and the components of change.  Of course, these results have since been superseded by the final Census results, but it seems fitting this is in our Top 5 given that Roscommon is the WDC’s ‘home’.

Number 3: What is Rural?

It might seem like a simple question, but the popularity of this post by Dr Helen McHenry from October 2017 shows that defining What is Rural? is far more complex that you might think. The post explores differing definitions of ‘rural’ used by the CSO, the National Planning Framework and the Commission for the Economic Development of Rural Areas. It concludes by asking if we need ‘rural policy’ or policy for people living in rural areas?

Number 2: Census 2016: Rurality, Population Density and the Urban Population of the Western Region

Examining the population living in rural areas (using the CSO definition!), population density across western counties and the population of towns in the region, Census 2016: Rurality, Population Density and the Urban Population of the Western Region from May 2017 provides a handy overview of the distribution of the region’s population.  It highlights that the region’s highly rural nature, with a dispersed population and a large number of small and medium-sized towns, has important implications for the delivery of services and infrastructure to residents of the Western Region.

And finally …

Number 1: Balanced regional development – What does it mean?

In our most popular post (by a long way!) Balanced regional development – What does it mean? Deirdre Frost explored the differing definitions and uses of this much used (and abused?) term.  Written in May 2015, when the initial discussions were underway for the National Planning Framework, as a successor to the National Spatial Strategy, it concluded … ‘When considering a new national planning framework which aims to deliver balanced regional development, deciding and agreeing what we actually mean by balanced regional development and how we measure it would be a useful starting point which might ultimately ensure a greater chance of success.’   Whether the final NPF actually achieved this clarity is perhaps a topic for a future post …

So, 200 posts done and we are looking forward to the next 200.  We hope you have found (at least some of) them useful and of interest.  If you have, forward them to your friends!  And if there are any issues you think we should cover in future posts, just let us know policyanalysis[at]wdc.ie

All the best

Pauline, Deirdre & Helen

[1] The answer’s here

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

Smaller Labour Catchments across the Western Region

Travel to Work Areas and Labour Catchments

Analysis of travel to work data can be used to identify the geographic catchment from which a town draws its workforce, otherwise known as its labour catchment. Measurement of labour markets based on Travel to Work Areas (TTWAs) has been well established in the UK for many years, helping to inform various public policies ranging from employment to transport provision. Companies and large employers use TTWAs to help identify optimal locations to access labour supply.

The use of TTWAs is less well established in Ireland, and where used has largely been focussed on the larger cities especially Dublin. There has generally been little focus on labour catchments in other centres or more rural regions.

The Western Development Commission (WDC) has worked with the All Island Research Observatory (AIRO) to examine the labour catchments of towns across the Western Region based on Census of Population data 2006 and 2016. The town labour catchments show that area from which a town draws most of its labour supply; each catchment is based on the inclusions of Electoral Divisions (EDs) that are assigned to a town, based on commuting to work flows.

Last year the WDC published the findings on the labour catchments of the principal towns of the seven counties of the Western Region (Galway, Ennis, Sligo, Letterkenny, Castlebar, Roscommon and Carrick-on-Shannon). The full report Travel to Work and Labour Catchments in the Western Region, A Profile of Seven Town Labour Catchments is available for download here (14.2MB). Each of the individual town reports are also available to download separately (Galway City, Sligo Town, Ennis,  Letterkenny, Castlebar, Carrick-on-Shannon, Roscommon).

The WDC is now publishing the findings of the other smaller catchments across the Western Region. This is the first time such detailed labour market analyses have been undertaken for the smaller centres across the Western Region. These data and findings can inform local and regional economic development and help support appropriate policies to ensure optimal local and regional development.

Smaller Catchments

The WDC identifies 26 labour catchments, which complement the 7 labour catchments of the principal towns in each of the counties which were published in 2018, see above.

In these 26 publications, the WDC draws on Census 2016 POWCAR (Place of Work Census of Anonymised Records) data to examine the travel to work patterns in centres with a population greater than 1,000 across the Western Region.

These 26 smaller catchments provide insights into the travel to work patterns of workers living there which are then used to generate labour catchments which show the geographic area from which each town draws most of its workers. Each town’s labour catchment has many more workers living there than the Census measure of the town’s resident workforce and it is a better measure of labour supply. This is particularly useful when considering employment and investment decisions.

Socio-economic profiles

Each of the reports identify the place of work of the resident workforce and provides detailed analysis of the socio-economic profile of workers providing information on age, gender, education levels, and sector of employment. There are comparisons with the rest of the Western Region and the State Average. There is also trend analyses indicating the extent of change between 2006 and 2016.

For ease of presentation the 26 smaller catchment reports are presented by County. Below are links to each of the 26 reports. In practice labour catchments extend across county boundaries, indeed that is one of the rationales for considering labour catchments rather than administrative boundaries; people travel to work regardless of county boundaries and these patterns and catchments provide a better evidence base for informing policy.

Some key points include:

  • Labour Supply: All the town labour catchments have significantly more people at work than the Census population at work for that town and have therefore access to a larger labour supply than normal Census definitions would indicate.
  • Profile of ‘Rural’ employment: The profile of employment in these smaller centres provide important insights into ‘rural’ employment, which is much are complex and varied than the perception of rural as largely agricultural employment.
  • Trends: Changes over time, in both place of work and the socio-economic characteristics of workers indicate little change in the geography of labour catchments but much change in the profile of resident workers, most notably in their age and education levels.

County Clare

The two labour catchments within Co. Clare have both recorded an increase in workers resident in the catchments. The Shannon labour catchment is concentrated around the Shannon Free Zone and Shannon Airport and is geographically compact. The Kilrush labour catchment is more extensive and now incorporates a previously separate Kilkee labour catchment. In both there is evidence of longer distances travelled to work than previously.

County Donegal

There are 8 smaller catchments located within Co. Donegal, reflecting the large size of the county, its geography with an extensive border both with Northern Ireland and the sea, and the relatively small size of some of the catchments.

Of the 8 labour catchments, 5 recorded a decline in the number of resident workers in the decade between 2006 and 2016. The three that recorded an increase in resident workers are Donegal, Dungloe and Carndonagh,  illustrating that some more remote areas are experiencing growth.

Each report identifies the top 10 work destinations for residents living in each labour catchment and the extent of cross border commuting is presented.

County Galway

There are 4 smaller catchments located within Co. Galway and just one, Gort labour catchment, recorded a decrease in the number of workers living there over the decade 2006-2016. Clifden, Tuam and Loughrea labour catchments recorded increases of varying degrees. The data presented also shows the extent of commuting between catchments, for example from Tuam, Loughrea and Gort labour catchments to Galway city.

County Leitrim

Apart from the county town labour catchment of Carrick-on-Shannon, there is just one smaller catchment located within Co. Leitrim, namely Manorhamilton. The number of resident workers in the Manorhamilton labour catchment increased over the ten year period and there is data to show more people are now working in Manorhamilton . The influence of some key employers is evident. Data on dross border commuting is also presented.

County Mayo

There are 8 smaller catchments located within Co. Mayo. Just two of the eight recorded a decline in the numbers of resident workers between the period of 2006 and 2016, these were Belmullet and the Charlestown/Knock Airport catchment. The other 6 recorded increases of varying degrees from 31% increase in the Westport labour catchment to an increase of 2.4% for the Ballina labour catchment. The most important places of work across each catchment are presented along with the labour market profiles of workers living there.

County Roscommon

There are 3 smaller catchments located within Co. Roscommon. All 3 recorded a decline in the numbers of workers resident there. In the case of Boyle and Ballaghaderreen, the geographic size of the labour catchments also decreased slightly. The data presented show the sectors in which people worked, the extent to which people worked inside the town and those who worked outside the town but within the wider catchment and the changes over the 10 years. Across all catchments there is a very significant increase in the level of third level education among the workforce.

 

Deirdre Frost

1 in 4 working in Agriculture, Forestry & Fishing in Ireland live in Western Region

The WDC has just published the sixth of its ‘Regional Sectoral Profiles’ analysing employment data for the Western Region on different economic sectors.  The latest looks at Agriculture, Forestry & Fishing and two publications are available:

Agriculture, Forestry & Fishing is a complex sector which plays many economic, societal and environmental roles.  This analysis only examines direct employment of those whose main economic activity is working in the sector, as reported in the Census.  It does not include persons who farm part-time but have another ‘main’ job or are retired.  It includes people working on farms, fishing vessels, aquaculture farms, forestry and stables but not in agri-food processing.[1]

Of everyone working in Agriculture, Forestry & Fishing in Ireland, 25.5% of them live in the Western Region, far higher than the region’s 16.6% share of total national employment.  Of all economic sectors, Agriculture, Forestry & Fishing is where the Western Region accounts for its highest share of total national employment.

Employment in Agriculture, Forestry & Fishing

According to Census 2016, 22,733 people were employed in Agriculture, Forestry & Fishing in the Western Region and it is the region’s sixth largest employment sector.[2]  The restructuring of Ireland’s economy towards services activity and high value manufacturing, as well as intensification and increased agricultural productivity, has substantially reduced the significance of Agriculture, Forestry & Fishing’s as a source of full-time employment (Fig. 1).

Fig. 1: Percentage of total employment in Agriculture, Forestry & Fishing in Western Region and state, 1996-2016

Source: CSO, Census 2016: Summary Results Part 2, Table EZ011; CSO, Census of Population 2006, Volume 7 – Principal Economic Status and Industries, Table C0713; CSO, Census of Population 2002, Volume 5 – Principal Economic Status and Industries, Table B0513; CSO, Census of Population 1996, Volume 5 – Principal Economic Status and Industries, Table A0513

The downward trend was reversed somewhat in 2011 as there was an increase in the number of people working in the sector between 2006 and 2011.  Massive construction job losses meant that some part-time farmers, who had been working in the building industry, reverted to full-time farming.  Also, job losses elsewhere in the economy increased the relative importance of this sector.  2016 saw a return to the downward trend.

This sector has consistently accounted for a higher share of employment in the region than nationally over the past two decades.  While the region and state followed similar patterns, the gap narrowed.  In 1996 the share of total employment accounted for by Agriculture, Forestry & Fishing in the region was 6.4 percentage points higher than in the state (15.6% compared with 9.2%) by 2016 the gap had narrowed to 2.4 percentage points (6.8% compared with 4.4%).

At a county level, in 2016 Agriculture, Forestry & Fishing was most important in Roscommon (9%), followed closely by Leitrim (8.6%) and Mayo (8.5%).  All other western counties have around 7% working in the sector and are considerably above the national average.[1]

Agriculture, Forestry & Fishing sub-sectors

Census data on employment in Agriculture, Forestry & Fishing is sub-divided into six separate activities.  For ease of interpretation, these have been combined here into four sub-sectors.  ‘Animals & Mixed Farming’ dominates and accounts for 88.6% of total employment in the sector in the region, a notably higher share than nationally (82.6%) (Fig. 2).  This sub-sector dominates in all counties, particularly Clare and Sligo and is least important for Donegal.

Fig. 2: Percentage of total Agriculture, Forestry & Fishing employment in each sub-sector in Western Region and state, 2016

Source: CSO, Census 2016: Summary Results Part 2, Table EZ011.
Due to the low numbers involved, Galway City is not included in the chart, but is included in the Western Region total.

‘Tillage, Horseracing & Other Farming’ accounts for a small share in the region (5.1%), less than half its share nationally (12.6%), reflecting the Western Region’s reliance on cattle and sheep farming.  ‘Forestry & Logging’ is the smallest in the region (2.6%).  At 6.4%, Leitrim is where ‘Forestry & Logging’ is most important to employment.

The role of ‘Fishing & Aquaculture’ in Donegal’s economy is clear.  It accounts for 14.3% of total Agriculture, Forestry & Fishing employment in the county (567 people) with Killybegs likely the main location.  Galway County (2.4%) and Mayo (2.2%) are the only other western counties with a notable share working in this activity.  The Western Region makes a very substantial contribution to this sector and is home to 43% of national ‘Fishing & Aquaculture’ jobs.[1]

Agriculture, Forestry & Fishing related occupations

People working in this sector are engaged in a range of different occupations.  In 2016, there were 24,014 people in the Western Region who reported themselves with an Agriculture, Forestry & Fishing related occupation[2] (Table 1).

The vast majority (86.9% in the Western Region) of those in Agriculture, Forestry & Fishing related occupations are farmers.[3]  At 20,880, farmers are the Western Region’s second largest single occupational group.  They dominate in all counties, most strongly Clare, Sligo, Roscommon and Galway County.  Donegal is where they account for their smallest share (76.2%) due to the strength of the fishing industry.

Table 1: Percentage in Agriculture, Forestry & Fishing related occupations in Western Region and state, 2016

Source: CSO, Census 2016: Profile 11 – Employment, Occupations and Industry, Table EB049.
Due to the low numbers involved (181 in total) Galway City is not included in the table but is included in the Western Region total.

The next largest is ‘Elementary Agricultural’ which includes unskilled occupations.  These are most important in Donegal (11.2%), with a high proportion of both farm and fishing workers.  Leitrim has the next highest share (9.3%) mainly due to forestry workers.  ‘Other Skilled Agricultural & Related Trades’ is also most important in Donegal is (11.8%) almost entirely due to skilled fishing trades, Galway County is next highest (4.3%) and for the same reason.

Conclusion

Despite declines, Agriculture, Forestry & Fishing continues to play a larger role in the region’s labour market and any changes in the sector would have a greater employment impact in the region and its rural areas in particular.  The sector is highly exposed to Brexit and it is vital that the issues and needs of this sector in the Western Region, characterised by smaller scale operations, is addressed in Brexit adaptation efforts.

The Western Region plays a strategic role in Ireland’s Fishing & Aquaculture sector.  Ireland’s seafood sector has shown strong recent growth, predominantly export-led.  Brexit however poses many challenges and addressing these will be vital to future jobs growth in this sector.  The region’s forestry resource is a valuable asset, supplying the construction industry with quality product.  The region is also well placed to further develop a wood energy sector using by-products to stimulate local job creation as well as increase renewable energy use.

Future changes in the pattern and activities carried out by the Agriculture, Forestry & Fishing sector, as a result of climate change mitigation and transition to a low carbon economy, could have significant positive and/or negative impacts on employment.  The nature and scale of such impacts is currently unclear however and will be one of the most important factors influencing this sector’s long term future.

For more, download Agriculture, Forestry & Fishing Employment in the Western Region: Regional Sectoral Profile and WDC Insights: Agriculture, Forestry & Fishing Employment in the Western Region here

Pauline White

 

[1] This regional strength is also reflected in the region’s 47.6% share of national employment in seafood processing, see WDC (2019), Industry in the Western Region: Regional Sectoral Profile

[2] This differs from the number working in the sector because unemployed persons are included in occupations data (under their last employment) but not in employment data, some people working in these occupations may work in another sector (e.g. a horticulturalist working for a landscaping company) and some people working in this sector may have different occupations (e.g. a bookkeeper at an aquaculture farm).

[3] See this WDC Insights blogpost ‘How many farmers are in the Western Region?’ for a discussion of different definitions and ways to measure the number of ‘farmers’.

[1] At 0.5% of total employment (163 people), Galway City is an exception.  Given the low numbers involved, Galway City will be excluded from much of the following analysis but it is included in the figures for the Western Region as a whole.

[1] Agri-food processing forms part of the Industry sector and was examined in a previous Regional Sectoral Profile, WDC (2019), Industry in the Western Region: Regional Sectoral Profile https://www.wdc.ie/publications/reports-and-papers/

[2] These are people who recorded in the Census that their main employment was in this sector.  Therefore someone who farms/fishes part-time but has another job (which they recorded as their ‘main’ employment) would not be included.

Travel to Work Areas and Border Labour Catchments

The WDC will present analysis on Travel to Work Areas (TTWAS) and the smaller labour catchments located along the Border at a conference in Derry, organised by NERI on 1st May see here for more details.

This work is part of a larger piece of work examining the smaller labour catchments across the Western Region which in turn is part of the WDC programme of research on Travel to Work Areas and Labour Catchments which has been a key element of the WDC Policy Analysis work programme for the last 10 years.

The work on smaller labour catchments follows on from the WDC report published in 2018, Travel to Work and Labour Catchments in the Western Region, A Profile of Seven Town Labour Catchments (2018). This provides a detailed labour market profile of the principal towns in each of the seven counties of the Western Region, based on travel to work patterns, namely: Galway, Ennis, Sligo, Letterkenny, Castlebar, Roscommon and Carrick-on-Shannon and is available for download here. (14.2MB)

The map below illustrates all the labour catchments across the Western Region, arising from the analysis of Census 2016 data.

Map 1 Labour Catchments across the Western Region 2016

The analysis of smaller labour catchments reviews the remaining 26 complete labour catchments contained within the Western Region and the 26 reports will be published shortly. Here is a sneak preview of some findings and points of interest.

The 26 complete smaller labour catchments are distributed across each of the counties of the Western Region as the table below shows.

Table 1 The 26 smaller Labour Catchments in Western Region Counties, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

The smaller labour catchments range in size from the largest, Ballina in Co. Mayo with 9,034 resident workers, to the smallest, Charlestown-Bellahy with 962 resident workers.

Each labour catchments has a greater number of workers living there compared to the figure reported in the Census for the town at its core, indicating a greater labour supply available than might otherwise be considered.

Of the 26 smaller labour catchments 15 reported an increase in numbers over the 10 year period from 2006 to 2016, while 11 of the smaller labour catchments reported a decline in numbers over the same period.

Generally, those that reported a decline are somewhat remote, for example five of those that reported a decline are located in Co. Donegal, namely, Ballybofey-Stranorlar, Buncrana, Killybegs, Bunbeg and Ballyshannon. Belmullet in west Mayo also recorded a decline in the number of resident workers living there over the 10 year period. A further four catchments in east Mayo/Roscommon reported a decline; namely Charlestown, Ballaghaderreen, Boyle and Castlerea, while Gort in co. Galway also had a decline in resident workers living there over the 10 year intercensal period.

In the case of the labour catchments in Co. Donegal, the larger labour catchments of Donegal town and Letterkenny, both recorded an increase over the period indicating move from the smaller more rural catchments in the county to the larger centres and this in part accounts for the changes.

For the centres in Mayo and Roscommon which reported a decline in numbers, some of this can be accounted for by growth in adjacent centres such as Castlebar and Carrick-on-Shannon but further analysis is needed to explain the changes in detail.

There is also some evidence of greater levels of longer distance commuting to Dublin and other locations, for example, the numbers travelling from the larger catchments of Galway city, Sligo and Ennis to work in Dublin has more than doubled over the 10 year period. This trend is likely to be evident for the smaller centres also.

However, it is also true that rural areas remain very important places of work. Across many of the 26 labour catchments the second most important place of work after the town itself is the rural parts of the county. Smaller centres and rural areas are very important employment centres and the analysis will show that this employment extends across sectors such as Education, health and Social Work, Manufacturing and Wholesale, Retail and Commerce.

Further detail will be available following the presentation at the NERI conference and will be posted here

 

Deirdre Frost

 

 

Changes and Trends in Disposable Incomes in Western Region Counties

The CSO has recently published data on Household Disposable Incomes at county level as part of the ‘County Incomes and Regional GDP 2016’ release.  This release contains useful trend data on incomes for counties as well as information about the levels of different household income components for each county.  Data on regional GDP, which is also part of this release, will be considered in a future post.

Here I give an overview of the 2016 Disposable Income data (and the estimates for 2017) before considering some of the changes over time.  It should be remembered that the ‘Disposable Incomes’ as discussed in this post are calculated at a macro level and the county data is most useful for comparison among counties and over time.  Indeed the CSO notes that “While the county figures involve uncertainty, they do provide a useful indication of the degree of variability at county level.”

The map from the CSO below gives a quick overview of Household Disposable Income per person in 2016.  It shows, unsurprisingly, that the highest disposable incomes are in the east and south, while counties in the west and north have the  lowest disposable incomes.   Dublin, Limerick and Kildare are the only counties where per capita disposable income exceeded the state average in 2016 although Wicklow, Cork and Waterford, were just below (see Figure 2below for more detail).

 

Source:  CSO, 2019, County Incomes and Regional GDP 2016

A summary of key data for the Western Region is provided in Table 1 below.  The data for 2016 can be regarded as more robust than the 2017 estimates and so it is used for most of the comparisons in this post.  In 2016 Disposable income per person in the Western Region was €17,934 and in 2017 it had increased to €18,128 (I have calculated the Western Region figures using inferred population estimates).

 

Table 1: Disposable income data for Western Region counties

*CSO Estimate  ^Own calculations

Source:  CSO, 2019, County Incomes and Regional GDP 2016  and CSO Statbank Table CIA02

 

Disposable income per person in Donegal is consistently the lowest in the region (and nationally) and estimates for 2017 show a small decline (-0.6%) in incomes in Donegal between the two years.  Disposable Incomes in Donegal in 2016 were only 77% of the state average.  Only three Western Region counties (Sligo, Galway and Leitrim) had disposable incomes of more than 90% of the state average, while Clare had a disposable income of 88% of the state average, Mayo 86% and Roscommon 83%.  The Western Region as a whole had a disposable income per person of 87% of the state average in 2016.

The small changes in disposable incomes between 2016 and the 2017 estimates are shown in Figure 1 below.  As noted, there was a decline in Donegal, and in Leitrim, Mayo and Roscommon the growth was less than 1%.  The most significant growth between 2016 and 2017 was in Clare (2.4%).  For the Western Region as a whole, disposable incomes showed a growth of 1.1%.  Disposable income per person in the State was €20,638 in 2016 and is estimated to have grown by 3.7% to €21,397 in 2017.  As noted, however, the 2017 data is estimated.  All counties showed more significant growth in Disposable Incomes between 2015 and 2016 (Table 1 above).  The largest growth in the region that period was in Mayo (4.6%) and Roscommon (4.4%).

 

Figure 1: Disposable Income per person for Western Region counties and the State, 2016 and 2017 (€)

*CSO Estimate  ^Own calculations

Source:  CSO, 2019, County Incomes and Regional GDP 2016

 

Disposable income per person for all Irish counties is shown in Figure 2 below.  Disposable income per person in Donegal is lowest in the state, and it is third lowest in Roscommon (Offaly is second lowest).  In contrast, Sligo has the tenth highest disposable income per person, and Galway is in eleventh place.  The highest disposable incomes nationally are in Dublin, Limerick and Kildare.   These, along with Wicklow, Cork and Waterford, all have Disposable Income per person of more than €20,000 per annum.

 

Figure 2: Disposable Income per Person for all Counties, Western Region and State.

Source:  CSO, 2019, County Incomes and Regional GDP 2016

 

Trends in Disposable Incomes over time

It is also interesting to look at changes in disposable incomes over time.  Figure 3 shows trends in disposable incomes in the Western Region between 2000 and 2016.  All of the counties show a very similar growth trajectory with rapid growth to the 2008 peak followed by rapid decline.  There was a small peak in 2012 followed by a fall in 2013 which related to a decline in social transfers as discussed here.  This decline between 2012 and 2013 which occurred in all counties, has mostly been followed by a period of growth to 2016.

 

Figure 3: Disposable Income per Person for Western Region Counties 2000-2016 (€)

Source:  CSO, 2019, Statbank Table CIA02

 

Disposable Incomes in the Western Region compared to the State

While Figure 3 shows the actual Disposable Incomes per person, when considering the trends among counties it is helpful to use indices so that county figures can be examined relative to the State (State=100).  Thus Figure 4 provides a contrast to the more positive growth trend indicated above in Figure 3 which showed growth in disposable incomes in Western Region counties between 2013 and 2016.  Growth rates in the Western Region were lower than for the state as a whole and so Figure 4 shows that Disposable Incomes in Western Region counties are declining relative to the state average (although there is some recovery relative to the State indicated between 2015 and 2016).  Figure 4 also reminds us that Galway was the only Western Region to have had a Disposable Income of higher than the state average during this period and this was only for one year in 2010.

 

Figure 4: Index of Disposable Incomes per person in Western Region counties 2000-2016, State=100

Source:  CSO, 2019, Statbank Table CIA02

 

Have Disposable Incomes Recovered?

Given the significance of the peak in Disposable Incomes in 2008 it is interesting to examine how Disposable Incomes performed in 2016 relative to that peak.  Although there has been some recovery in Disposable Income since their lowest point in 2013, Disposable Income per person in 2016 was below that for 2008 in all of the counties in Ireland (Figure 5).   Indeed for seven of the counties Disposable income was over than €4,000 per person less in 2016 than it had been in 2008.  Two of these counties (Roscommon and Clare) are in the Western Region.  As was shown in Table 1 above Disposable Income in 2016 was more than 20% lower in Roscommon (€4,401) in 2016 than it had been in 2008, while in Clare it was more than 19.1% less (€4,277).  Most significantly, in Meath incomes were €5,544 higher in 2008 than in 2016.

 

Figure 5: Difference in Household Disposable Income per person in 2008 and 2016

Source:  CSO, 2019,  Statbank Table CIA02

 

In contrast, Limerick is the county showing least difference in disposable income per person in 2008 compared with 2016 (- €321).  Dublin and Kerry have also recovered relatively well, although there is still a significant difference between Disposable Incomes in these counties in 2016 and 2008.  Of the Western Region counties Sligo has recovered best, with disposable incomes only 8% below that in 2008 (€1,746).  Interestingly, Donegal (14% less) and Mayo (13%), which are among the Western Region counties with the lowest Disposable Incomes per person, also show a less significant gap to 2008 than other Western Region counties.  However, it is of concern that disposable incomes in all counties are still considerably lower than they were in 2008.  While the Irish economy has recovered well in the last few years, this has not fed through to disposable incomes as measured in this data.

The differences in disposable incomes among counties can be explained by the changing patterns in the components of household incomes (as was discussed here and here).  I will examine trends in these in the most recent data on income components in a future post.  The growth and change in the regional economies as shown by the Regional GVA data will also be examined in a future post.

 

Helen McHenry

 

 

Hospitality plays a larger role in employment & enterprise in the Western Region

The WDC has just published its latest Regional Sectoral Profile which examines the region’s fifth largest employment sector – Accommodation & Food Service.  Both the detailed report ‘Accommodation & Food Service Sector in the Western Region: Regional Sectoral Profileand a two-page summaryWDC Insights: Accommodation & Food Service Sector in the Western Region’ can be downloaded here

Accommodation & Food Service includes all those working in hotels, guesthouses, pubs, clubs, restaurants, takeaways, coffee shops, catering companies and mobile food / coffee vans.  Essentially it is the hospitality industry.  The Western Region is home to 19.7% of everyone working in hospitality in Ireland and 23.7% of all of the sector’s enterprises.

Accommodation & Food Service as a share of total employment 

According to Census 2016, 23,038 people were employed in Accommodation & Food Service in the Western Region.  It plays a greater role in the region’s labour market than nationally (Fig. 1) accounting for 6.9% of total employment compared with 5.8%.  Among western counties, it is most important in Galway City at 9.9%, followed by Donegal and Mayo.  These three counties are among the top five in Ireland in terms of the share of their workforce engaged in hospitality.  Roscommon has the lowest share in the region and is fourth lowest in the state.

Fig. 1: Percentage of total employment in Accommodation & Food Service in Western Region and state, 2016

Source: CSO, Census 2016: Summary Results Part 2, Table EZ011

At 27.6% of total employment, Clifden has the highest share working in hospitality of Ireland’s 200 towns and cities (1,500+ population) with Bundoran (21.7%), Westport (21.1%), Donegal town (20.3%) and Carrick-on-Shannon (15%) also among the top 10 towns in Ireland.   At under 6%, Ballyhaunis, Ballymote and Boyle have the lowest shares working in the sector in the region.

Employment by gender 

Hospitality is a more important employer for women than men (Fig. 2) with 8.2% of all working women and 5.8% of all working men in the Western Region working in the sector.  The sector plays a more significant role in both female and male employment in the region than nationally, most notably for women.

Galway City, Donegal and Mayo are where hospitality is most important for female employment employing close to 1 in 10 of all women.  In the case of Donegal and Mayo the sector is considerably more important for women’s jobs than men’s.  Galway City is the only area where hospitality is more important to male than female employment however the shares are quite similar indicating the sector is more gender-balanced, as it also seems to be in Sligo.

Fig. 2: Percentage of total male and total female employment that is in Accommodation & Food Service in Western Region and state, 2016

Source: CSO, Census 2016: Summary Results Part 2, Table EZ011

Self-employment in Accommodation & Food Service

14.1% (3,237 people) of people working in the sector are self-employed (employer or own account worker). The Western Region has a considerably higher incidence of self-employment than the national average (11.5%).  This could indicate that hospitality operations in the Western Region tend to be smaller in scale with fewer employees and that owner-manager/family-run businesses are more common.  The extent of self-employment declined between 2011 and 2016, most strongly in more rural counties.

Accommodation & Food Service Enterprises

In 2016 there were 4,358 Accommodation & Food Service enterprises registered in the Western Region which was 23.7% of all such enterprises in the state.  This is the sector where the region accounts for its highest share of all enterprises nationally.

Hospitality accounted for 10.2% of all business economy[1] enterprises registered in the Western Region 2016.  Donegal, Leitrim and Mayo have the highest share of enterprises in the sector at 11+% showing the importance of the sector in their overall enterprise profile.

Key Policy Issues for the Western Region’s Hospitality Sector

Accommodation & Food Service plays a larger role than nationally in the Western Region’s economy, in terms of its employment profile and enterprise base.  Any changes in demand for this sector e.g. from Brexit, an economic downturn, will have a particularly large impact on the region and national policy needs to address issues specific to the region such as improved accessibility for visitors and the viability of rural hospitality businesses relying on local demand.

As it is quite widely distributed, hospitality helps to sustain the regional and rural economy and is becoming an increasingly important reason for people to visit town centres. Therefore it is a critical element in town centre renewal efforts.  It is also an important source of jobs for those with lower skills or limited experience, whose rights need to be protected, as well as providing highly skilled occupations and considerable opportunities for entrepreneurship.  Self-employment, while still higher in the region than elsewhere, is declining and it is important to support and encourage self-employment to maintain the diversity of the region’s hospitality offering.

Hospitality is highly sensitive to changing economic conditions which influence both the level of disposable income of local residents and overseas and domestic tourism activity. The balance between local and tourist demand in sustaining the hospitality sector varies considerably across the region (from tourism ‘hotspots’ to small rural towns depending on local custom) and policy aimed at strengthening the sector needs to be tailored to the specific circumstances of different areas.  Rural and border counties are particularly exposed to Brexit while the sector as a whole needs to adapt to emerging trends e.g. Airbnb, changing demographics, low carbon economy.

Download Accommodation & Food Service Sector in the Western Region: Regional Sectoral Profile and WDC Insights: Accommodation & Food Service sector in the Western Region here

The report also examines data on overseas and domestic tourism revenue and numbers to the Western Region, which will be the subject of a future post.

 

Pauline White

[1] Business economy includes all economic sectors except Agriculture, Forestry & Fishing, Public Administration & Defence, Education, Health & Social Work and Other Services.

How important is Industry as a regional employer?

We’ve just published the fourth of our ‘Regional Sectoral Profiles’ analysing employment and enterprise data on specific economic sectors. The latest report examines Industry which is the Western Region’s largest employment sector, with 45,754 working in it.  Industry includes mining, utilities and waste management but by far the largest element is manufacturing.  Three publications are available:

Trends in Industry employment in the Western Region and its counties

Industry’s share of total employment has changed considerably over the past two decades (Fig. 1).  Ireland’s move to a more service-based economy, with substantial losses of traditional, lower skilled Industry and a growing focus on high value, high-tech manufacturing, has substantially changed the significance and nature of industrial activity in Ireland and the region.

In 1996 21% of total employment in the Western Region was in Industry, the share declined in every Census to a low point of 13% in 2011, increasing somewhat to 13.7% by 2016.  The state showed a similar pattern declining from 20.4% in 1996 to 11.4% by 2016.  While both region and state followed similar patterns, the gap between them widened over the period so that in 2016 Industry was notably more important as an employer in the Western Region.

Fig. 1: Percentage of total employment in Industry in Western Region and state, 1996-2016

Source: CSO, Census 2016: Summary Results Part 2, Table EZ011; CSO, Census of Population 2006, Volume 7 – Principal Economic Status and Industries, Table C0713; CSO, Census of Population 2002, Volume 5 – Principal Economic Status and Industries, Table B0513; CSO, Census of Population 1996, Volume 5 – Principal Economic Status and Industries, Table  A0513

At a county level, the most dramatic change occurred in Donegal; from over 1 in 4 working in Industry in 1996 to less than 1 in 10 twenty years later.  Donegal’s economy has been dramatically restructured, with a strong shift from manufacturing to services.  At just 9.2% of all employment, Donegal has the smallest share working in Industry in Ireland, outside of Dublin.

In 1996, Clare had the second highest share in the region working in Industry, largely due to the Shannon Free Zone. With the dramatic decline in Donegal, Clare had the region’s highest share for much of the period but was overtaken by Galway County in 2016.  From having the region’s second lowest share in 1996, Galway County now has the highest share working in Industry in the region at 16.3%.  Industry is the single largest employment sector for Galway County, Galway City and Clare.

At town level, Ballyhaunis in Co Mayo has the highest share of its employment in Industry among Ireland’s 200 towns and cities, where it accounts for 41.9% of total employment.  Shannon in Co Clare is fourth highest nationally at 31.9% with Tuam also in the top 10 towns at 25%.  The region is also home to the two towns in Ireland with the lowest shares working in Industry in Bundoran (3.5%) and Carndonagh (4.9%), both in Co Donegal.  It must be noted that this refers to the town where a person lives though they may work elsewhere.

Employment in Industry sub-sectors in the Western Region

The Medical & Dental Instruments (MedTech) sector is by far the largest industrial activity in the Western Region accounting for 27.7% of the region’s total Industry employment (Fig. 2), more than twice the national average (12.1%).

The region’s second largest (14.1%) is Chemicals, Pharmaceuticals, Rubber & Plastics (Chemicals & Pharma) which is the largest in the country (18.4%).  The manufacture of pharmaceuticals is the main activity.

Food, Drink & Tobacco (Agri-food) is the region’s third largest sub-sector with meat processing, bakery/confectionary, seafood and beverages the main activities. Agri-food’s share of industrial employment in the region (11.2%) is considerably smaller than nationally (17.1%). This is partly due to the strong concentration of such activity in the other regions and the nature of the Western Region’s farming.

There are differences across counties in the relative importance of the sub-sectors. For Galway City, Galway County and Leitrim, the MedTech sector is the largest industrial employer.  For Sligo and Mayo, it is Chemicals & Pharma, while for Donegal and Roscommon Agri-food is largest.  Computer & Electronic Equipment is Clare’s main industrial employer. Further detail on the industrial profile of the western counties can be found here.

Fig. 2: Percentage of total Industry employment in each sub-sector in Western Region and state, 2016

Source: CSO, Census 2016: Summary Results Part 2, Table EZ011

Transport Equipment experienced the largest percentage growth in employment in the Western Region between 2011 and 2016, increasing by 52.7% (+451 people).  The region had far greater growth than nationally (15.5%). This sector includes companies such as Valeo Vision Systems in Tuam, Mirror Controls International in Leitrim, McHale Engineering in Mayo and Lufthansa Technik Turbine in Clare.

The next highest growth was in the region’s largest sub-sector, MedTech where employment grew by 30.2% (+2,935 people), followed by Computer & Electronic (21.2%, +633 people).  Very strong growth in these three high-tech manufacturing sectors contributed substantially to the region’s stronger than average performance, with total Industry employment growing by 13.7% compared with 9.4% in the country as a whole.

Key Policy Issues

Industry plays a considerably greater role in the region’s economy and labour market than nationally.  Its performance, and future trends in manufacturing, will have a greater impact in the region.  Given the growing role of services nationally, and increasing policy focus on attracting and growing international services, it is vital that manufacturing’s central role in the Western Region’s economy is fully recognised and supported in policy decisions.  There also needs to be a strong focus on developing new growth areas to increase industrial diversification.

The region has a higher reliance on foreign owned firms.  Global developments which impact on the extent and nature of foreign owned investment in Ireland would have very significant knock-on impacts on the regional economy, not only for direct jobs in foreign owned manufacturing, but also Irish owned sub-suppliers.

Digital transformation poses a threat to certain jobs but also creates new occupations and activities.  Manufacturing has already evolved substantially and adopted many digital technologies.  Processing and operations jobs, especially manual work e.g. packing, are now most at risk from automation.  Upskilling of the current industrial workforce should be a key regional priority.

The nature of work and skills needs are changing.  The share of jobs that are permanent full-time is declining and it is important that policy adapts to ensure that the rights and obligations of individuals and employers are clearly outlined and protected, for example in relation to training and upskilling. Industry’s skill needs are changing with areas of current demand including science and engineering, craft skills and operatives with digital skills.  As Ireland’s manufacturing sector continues to evolve there will be growing demand for STEM qualifications.

The Western Region is a global location for MedTech. The cluster includes multinationals and Irish start-ups supported by a strong skills base and research infrastructure. Life Sciences, including MedTech and Chemicals & Pharma, is present in all counties but strongest in Galway, Sligo and Mayo. It is a key regional asset but its dominant role presents some risk. Opportunities for convergence with other sectors and dissemination of its expertise should be supported to promote industrial diversification.

Activities which rely on domestic demand or the UK market face challenges. These sectors play a larger role in rural counties, have high levels of Irish SME activity and are important for male employment.  Manual tasks are vulnerable to automation and Brexit presents a threat, especially for Agri-food.  Improving the competitiveness, as well as market and product diversification, of such firms will be important to sustaining the regional and rural economy.

The region has an emerging strength in Transport Equipment. For Galway County, Mayo and Roscommon it was the strongest growing sector and Leitrim has the highest share in the country.  Many of the companies are located in medium-sized or small towns and opportunities to further embed and strengthen this emerging cluster should be supported.

For more detailed analysis see ‘Industry in the Western Region: Regional Sectoral Profile

Data on agency assisted jobs in Industry in also analysed in the report, and will be the topic of a future blog post.

Pauline White