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Industry’s role in total ‘agency assisted’ jobs declining nationally but remains highly stable in Western Region

In a recent post I outlined some of the main findings from our analysis of Census employment data on the Industry sector in the Western Region.   Our recent report ‘Industry in the Western Region: Regional Sectoral Profile’ also examined agency assisted Industry jobs and they are the subject of this post.

Each year the Department of Business, Enterprise & Innovation (DBEI) (and formerly Forfás) conducts a survey of all firms in Ireland who have ever received assistance from IDA, EI or Udarás na Gaeltachta.  This is published as the Annual Employment Survey (AES) and these firms are referred to as ‘agency assisted’.  They are limited to Industry or International Services firms currently or with the potential to export.  For Industry this would include most enterprises.   Unlike Census data, which is based on where a person lives, AES data is based on where the company is located, so is the location of the job, even if the person travels from another county.

Agency assisted jobs in Industry in the Western Region

The latest AES data is from 2017 when there were 49,435 agency assisted Industry jobs in the Western Region.  From a low of 38,000 in 2010, assisted Industry jobs have grown steadily, accelerating since 2013.

Of total assisted Industry jobs in the region, 87.6% are Permanent Full Time (PFT) with the rest ‘Other Jobs’ (temporary, part-time or contract).  The share of PFT jobs in the region is lower than nationally (89.5%) indicating that other forms of employment are more common in the region’s industrial sector.   The share of jobs that are PFT declined over the decade from 92.2% in the state and 90% in the region in 2008 indicating a rising prevalence of other forms of employment.  Every western county, except Donegal, had a lower share of PFT assisted Industry jobs in 2017 than a decade earlier.

Industry’s share of total assisted jobs

In the Western Region, the share of total assisted jobs (Industry + International Services) accounted for by Industry has remained extremely stable at around three-quarters over the past decade (Fig. 1). This contrasts strongly with a steady decline nationally from 64.2% in 2008 to 55.6% by 2017.  International services account for a far higher and growing share of assisted jobs nationally than in the region, where Industry continues to play a greater role.

Due to confidentiality reasons, data on assisted jobs at county level is combined for Leitrim, Roscommon and Sligo.  In 2017, this is where Industry accounts for its highest share of assisted jobs (88.6%). There has been a considerable increase in Industry’s importance, partly due to substantial job losses in international services over this period.[1]  Mayo has the next highest share (87.3% in 2017) in Industry with a number of significant Irish and multinational manufacturing plants but limited international services activity.

In Galway, Industry’s share declined markedly between 2009 and 2012 but has remained relatively steady since as its growth in Industry and international services jobs has been similar (29.2% in Industry and 25.2% in international services during 2012-2017). While there has been fluctuation in the relative importance of Industry in Clare, by 2017 73% of Clare’s assisted jobs were in Industry, the same share as a decade earlier.  Industry’s role in Donegal declined throughout the period, partly due to very strong growth in international services as well as manufacturing job losses.  At 61.8% Donegal has the lowest share of Industry jobs in the region but is still above the state average.

Fig. 1: Industry as a percentage of total assisted jobs in Western Region and state, 2008-2017

Source: Department of Business, Enterprise & Innovation (2018), Annual Employment Survey 2017, special run. Note: For ease of interpretation the vertical axis starts at 50%.

Assisted jobs in Industry sub-sectors

MedTech dominates assisted Industry jobs in the Western Region (Fig. 2) accounting for 29.7% of all such jobs in the region compared with 13.3% nationally.  For the country as a whole, Agri-food is by far the largest assisted Industry sector.  As well as Agri-food, the region also has a notably lower share involved in the high-tech Chemicals & Pharma and Computer & Electronic sectors.

Fig. 2: Percentage of total assisted jobs in Industry in each sub-sector in Western Region and state, 2017

Source: Department of Business, Enterprise & Innovation (2018), Annual Employment Survey 2017, special run

During 2012-2017 the region performed considerably better than nationally in the region’s three strongest growing sub-sectors (Fig. 3).  Valeo in Tuam would be a key factor in the strong growth in Transport Equipment, while recovery in the building industry drove the next highest growing sub-sectors.  In many other sub-sectors, jobs growth in the region was relatively similar to the national experience.  It did have a notably stronger performance in Clothing & Textiles while there was a decline in Mining & Quarrying jobs in the Western Region compared with growth nationally.

Fig. 3: Percentage change in assisted jobs in Industry sub-sectors in Western Region and state, 2012-2017

Source: Department of Business, Enterprise & Innovation (2018), Annual Employment Survey 2017, special run

Assisted Industry jobs by ownership

Of total assisted Industry jobs in the Western Region in 2017, 55.1% (27,214) were in foreign owned companies, higher than the 45.3% share nationally.

During the early years of the recession (2008-2012), the share in foreign ownership increased substantially (from 52.7% to 55.8%) due to large job losses in predominantly Irish owned sectors supplying construction, as well as jobs recovery beginning earlier in the foreign owned sector, strongly influenced by the performance of MedTech.  While jobs growth has extended more widely in the Irish owned sector, the share jobs in foreign ownership remains at a higher level than pre-recession.  Foreign ownership is not only more important to Industry in the Western Region, but the recession further strengthened its role.

The ownership pattern differs across Industry sub-sectors.  At 96.8% of assisted jobs in foreign ownership MedTech is very heavily reliant on FDI companies with large employers such as Medtronic, Boston Scientific and Abbot.  Transport Equipment, which has shown strong jobs growth, has the next highest level of foreign ownership at 84.4%.

In terms of Irish ownership, all assisted jobs in Mining & Quarrying and practically all (98.2%) in Clothing & Textiles, is in Irish owned firms.  For Clothing & Textiles, the loss of previous foreign owned jobs in the sector e.g. Fruit of the Loom in Donegal, and the changing character of the sector to focus on high value, hand crafted products e.g. Magees of Donegal, Foxford Woollen Mills, means it is now largely an indigenous industry.  Agri-food has the next highest level of Irish ownership at 85% of assisted jobs.

Conclusion

Industry plays a considerably more significant role in agency assisted employment in the Western Region accounting for 3 in 4 of all assisted jobs.  While Industry’s share is declining nationally, it is highly stable in the region with its strong Life Sciences cluster a contributing factor.

While Industry’s share of assisted jobs has remained highly stable, there have been many changes within the sector over the past decade including a growing share of non-permanent jobs and the increased significance of foreign owned employment.

Greater diversity in the industrial profile of a region increases its resilience and capacity to withstand external shocks.  The region’s greater reliance on foreign ownership and the dominant role of Life Sciences (while a key regional asset) could increase the region’s exposure to risk.  There needs to be a strong policy focus on further embedding existing regional strengths while also developing new areas of growth e.g. Energy, Transport Equipment, advanced engineering, to further diversify the region’s industrial profile and increase its resilience.

More detailed analysis of agency assisted employment in Industry in the Western Region is provided in Section 3 of ‘Industry in the Western Region: Regional Sectoral Profile’.

Pauline White

[1] The numbers employed at the former MBNA (now Avantcard) call centre in Carrick-on-Shannon reduced substantially over this period, as well as a number of call centre closures in Sligo.

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

Even Nuttier about NUTS!

Last July I published a blog post Nuts about NUTS! where I discussed the introduction of the new regional classification for statistics in Ireland.  Briefly, a new regional classification for collecting statistics in Ireland was approved by the EU in 2016, following the Local Government Act 2014 and the establishment of three new Regional Assemblies.  The CSO first used this new regional classification in the Labour Force Survey for Quarter 1 2018.  It has since used the new regional classification in any data release which includes regional data.

The new structure involves three NUTS2 level regions (replacing the two previous NUTS2 regions (Southern & Eastern and Border, Midland & West)) and eight (revised) NUTS3 level regions as follows:

  • NUTS2 Northern & Western: Composed of NUTS3 West (Galway, Mayo, Roscommon) and NUTS3 Border (Donegal, Sligo, Leitrim, Cavan, Monaghan).
  • NUTS2 Southern: Composed of NUTS3 Mid-West (Clare, Limerick, Tipperary), NUTS3 South East (Wexford, Waterford, Carlow, Kilkenny) and NUTS3 South West (Cork, Kerry).
  • NUTS2 Eastern & Midland: Composed of NUTS3 Dublin, NUTS3 Mid-East (Wicklow, Kildare, Meath, Louth) and NUTS3 Midlands (Offaly, Laois, Westmeath, Longford).

The changes at NUTS3 level are the transfer of South Tipperary from the South-East NUTS3 region into the Mid-West NUTS3 region (following the amalgamation of North and South Tipperary Councils) and the movement of Louth from the Border NUTS3 region to the Mid-East NUTS3 region.  Therefore four out of the eight NUTS3 regions changed and four (West, South West, Dublin and Midlands) remained the same.  The CSO published an Information Note on the revisions.

Transition Period

Like the UK leaving the EU, we are currently in something of a ‘transition period’ when it comes to regional statistics in Ireland, and while nowhere near as traumatic, it is causing a few problems and some confusion, namely:

Which NUTS3 regions? It is easy to tell the ‘new’ classification when it includes the NUTS2 regions.  If you see Northern & Western, Southern and Eastern & Midland you know it is the ‘new’ one.

However as the names of the NUTS3 regions remained unchanged, when you just see a list of the NUTS3 regions, it is not clear if the ‘old’ or ‘new’ classification is being used. A good example of how this can be confusing was the recent Census of Industrial Production 2016.  In this release data was provided for five NUTS3 regions (Border, Dublin, Mid-East, Midland and West) as the data for the South West, South East and Mid-East were suppressed for confidentiality reasons. No data was therefore given in the release publication for the NUTS2 regions. Reading the release it was not clear which regional classification was used and it was not included in the Background Notes to the release.  Only by going into Statbank to download the data, and seeing the NUTS2 regions of Northern & Western etc. listed was it clear that the ‘new’ classification was used.

When using the CSO’s Statbank system, a ‘Note’ will usually appear in a dialog box at the top of the page (see below), and also at the bottom of the spreadsheet you download indicating if the new regional classification is used.  If you are looking at a published CSO ‘Release’ such as the Adult Education Survey 2017, then the regional classification is usually included in the ‘Background Notes’.

Fig. 1: Screengrab from CSO Statbank

Different CSO data sets: As mentioned above, any new data (which includes a regional breakdown) issued by the CSO since mid-2018 uses the new regional classification.  However data sets published prior to that use the older classification.  So for example the most recent Labour Force Survey data, which measures employment and unemployment, uses the new regional structure but the County Incomes and Regional GDP 2015 data issued last February uses the older classification.  Therefore a report or analysis drawing on a number of different CSO data sets may find that the regional classifications are not necessarily comparable.

Different data sources: While the CSO has adopted the ‘new’ regional classifications for all releases, this may not be true of all data providers.  Earlier this year the IDA issued its end of year results for 2018.  The results included data for the number of jobs in IDA-backed companies by region and the annual change.  The release did not specify which regional classification was used, so it was unclear if their ‘Border’ was the ‘old’ region including Louth or the ‘new’ region without Louth.

I got in touch with IDA and they confirmed they were continuing to use the ‘old’ regional structure as it aligned with their regional office structure, the regional targets set in their Strategy and current EU State Aid regulations.  Their intention is to switch to the new structures from 2020.

While this is very understandable, it does raise the possibility for some confusion and misunderstanding.  For example someone may compare total employment in the Border region in 2018 (derived from the LFS and using the ‘new’ regions) with employment in IDA companies (derived from IDA results and using the ‘old’ regions) without realising the two ‘Borders’ are not the same region.  This clearly illustrates the need for all data providers and users to state which regional classification is being used.

Time series: When releasing new regional data with the ‘new’ classifications, the CSO are (where applicable) issuing ‘backdated’ results for the ‘new’ regions to 2012, so for example in the CSO’s Statbank if you go to the Labour Force Survey, you can download data for the ‘new’ regions for each quarter from Q1 2012 to Q3 2018 (latest).  Clearly, recoding and backdating massive data sets with new classifications is a time-consuming task and providing six years of time series data is very welcome.

However it does mean conducting time series analysis at regional level (except for the four ‘unchanged’ NUTS3 regions) further back than 2012 involves a break in the data at 2012.  This break in the time series can cause some confusion, an example was the Survey on Income and Living Conditions (SILC) published late last year. The CSO used the new classification for the 2017 release and backdated to 2012, with the data prior to that (2004-2011) using the old classification.  They noted this in the dialog box (see below) and download in Statbank and in the ‘Information Note’ for the release.  However, there was some commentary by people comparing the regional poverty data from 2008 and 2017 without making reference to the fact that for four of the eight regions, the data for the two periods was not directly comparable.

Fig. 2: Screengrab from CSO Statbank

Also, while the CSO have committed to providing backdated time series for the new regions to 2012, it is not clear if all data providers will do the same.  Therefore it is important to check.

Coping with the transition!

Obviously over time this issue will largely resolve itself as the revised classification becomes the norm for all data and we move further away from the ‘break’ in the time series.  In the meantime however here are a few suggestions for coping with the transition:

  1. Check: When looking at or downloading any data at regional level, check which regional classification is used. For CSO data, it is usually included in a ‘dialog’ box in Statbank and the Background/Information Note for the release or if the data includes NUTS2 data it is easy to tell. In general any CSO data issued since June 2018 uses the ‘new’ classification and anything issued before that will be the ‘old’.  Also be sure to check if (and how far) any backdating of the data has been done, for CSO it will generally be to 2012. Other data sources would need to be checked on a case by case basis.
  2. Ask: If it is not stated or clear from the release or data, contact the data provider to check. The more people who make a query, the more conscious all data providers will be to clarify which classification is used.
  3. Say: If you are a data provider and publishing data at regional level, be conscious to explicitly state which regional classification is used. If you are a data user and are publishing analysis or commentary using regional data, clarify which classification you are using. This is particularly critical if multiple data sets or sources are used with different regional classifications.

While this may all seem a little pedantic, given the current interest in the impact of Brexit on the border economy, knowing if someone discussing data for the Border is discussing a Border including Louth (with Dundalk and Drogheda) or a Border excluding Louth, could make quite a lot of difference.

Pauline White

The Education Sector in the Western Region

The WDC recently published the third in our ongoing series of ‘Regional Sectoral Profiles’ analysing employment and enterprise data for the Western Region on specific economic sectors and identifying key policy issues. The new report examines the Education Sector, the Western Region’s fourth largest employer.

The full report ‘The Education Sector in the Western Region: Regional Sectoral Profile’ and the two-pageWDC Insights: The Education Sector in the Western Region’, which summarises the key points, can be downloaded here

The Education sector plays a vital role in society, educating our young people, providing lifelong learning and personal development opportunities, as well as the necessary skills for the economy. It includes all those working in public, private or community/voluntary pre-primary, primary and secondary schools (e.g. teachers, support staff) as well as staff of further and higher education institutions and colleges. The sector also includes other types of educational activity such as music schools, adult education and driving schools.  Discussions of the Education sector generally focus on provision of services. This ‘Regional Sectoral Profile’ however focuses on its role as a key economic sector and regional employer.

Employment & Enterprise in the Education Sector

A few of the key findings from the report on employment and enterprise in the sector include:

  • 32,349 people were employed in the Education sector in the Western Region in 2016. Education plays a greater role in the region’s labour market than nationally, accounting for 9.7% of total employment compared with 8.8%.
  • Education is most important in Donegal (10.8% of all employment), followed by Galway County (10.2%). These are the highest shares working in Education in the country.
  • Moycullen in Co Galway (19%) has the highest share of residents working in Education across Ireland’s 200 towns and cities. The towns with the next largest shares in the region are Bearna (13.3%), Strandhill (12.2%) and Carndonagh (11.9%). It must be noted that this data refers to residents of the towns, although some may travel to work elsewhere e.g. NUI Galway, IT Sligo.
  • The number of people working in Education in the Western Region grew by 4.4% (2011-2016), weaker growth than the sector nationally (5.7%) and also weaker than total employment growth in the region (7.5%).
  • At 32.2% and 25% of total Education employment respectively, ‘Primary’ and ‘Secondary’ are the two largest Education sub-sectors, with a higher share working in both in the region than nationally. In contrast the region has a lower share working in ‘Higher Education’ (15.2% v 16.8%).
  • ‘Pre-primary Education’ saw the strongest jobs growth, +44.8% in the region (2011-2016) largely driven by introduction of the Early Childhood Care and Education (ECCE) Scheme providing a free pre-school place to all children.
  • 7% of all working women and 4.4% of all working men in the Western Region work in Education. The sector plays a more significant role in both female and male employment in the region than nationally.
  • In 2016 there were 2,710 Education enterprises registered in the Western Region. Education enterprises account for 5% of all enterprises in the region, above the 4.4% share nationally.  Sligo is where the sector accounts for the largest share of enterprises (5.5%) with Clare and Galway next highest (5.2%).

Key Policy Issues for the Western Region’s Education Sector

  • Higher reliance on the Education sector in the Western Region: Education is a more significant employer in the Western Region than nationally and plays a critical role in providing professional career opportunities, including in more rural areas where there may be fewer alternatives. While the main focus for Education policy must be the provision of quality services, the sector’s parallel employment role should also be a factor in policy decisions.
  • Central role in female employment: 3 out of 4 people working in the Education sector in the Western Region are women. Galway City has the lowest female share, and Roscommon and Leitrim have the highest, indicating that Higher Education has lower female involvement than other Education sub-sectors. Any future development in Education will have a far greater impact on female than male employment levels.
  • Demographic Factors: The most recent projections from the Department of Education and Skills indicate that primary school enrolments peaked in 2018, while for second level education the numbers are projected to peak in 2024. The expected decline in demand for primary and secondary education in the medium-term will impact on future Education employment trends. Demand for third level education is more varied. As well as direct transfers of young people from secondary school, demand also comes from mature students returning to education and from international students, while staff are also engaged in other activities e.g. research, which are separate to student enrolments.
  • Lifelong Learning: There is increasing recognition of the importance of lifelong learning and the need to continually update skills, or acquire new skills, to adapt to changing technology and an increasingly flexible labour market. As well as the demands of the labour market, lifelong learning is also pursued for personal development. There are regional differences however in participation in lifelong learning. In the Border region, just 5% of adults were engaged in formal education, in the West region it was 8% while it was highest in Dublin at 12%. Meeting the Government’s target of 10% of adults to be engaged in formal lifelong learning by 2020 (15% by 2025), particularly in the Border region, will require a very substantial increase in participation representing a growth opportunity for the Western Region’s Education sector.
  • Regional Skills: The Education sector is largely responsible for providing skills needed by the regional economy; skills needs which are continually changing. Provision of regional skills involves a wide range of education providers and close engagement with employers. Regional Skills Fora provide a useful structure. Changing skill demands impact on Education employment, as emerging skill needs can only be met if Education professionals with expertise in these new areas e.g. artificial intelligence, big data, are available.
  • Emerging Opportunities: The introduction of the ECCE had a very dramatic jobs impact on Pre-primary Education. This shows the potential for developing new opportunities in the Education sector, where job creation may not be the main objective but is nonetheless an important outcome. Brexit presents another potential opportunity. It is estimated that 10,000 students from the Republic of Ireland study in Northern Ireland or elsewhere in the UK and institutions such as Letterkenny IT and IT Sligo in the Western Region, could attract some of these students. Also students from EU member states wishing to study abroad in an English-speaking country are more likely to choose Ireland following Brexit. Another opportunity is the Western Region’s growing number of retired people who represent potential new demand for Education services. Given demographic trends, increased demand for Education services from adults, including retired people, is an area of potential growth.

Download the full report ‘The Education Sector in the Western Region: Regional Sectoral Profile’ and the two-page WDC Insights: The Education Sector in the Western Region’ which summarises the key points, here

Pauline White

A year in review: WDC Policy Analysis 2018

Happy New Year from the WDC Policy Analysis team!  As we all try to settle back into work and look forward to 2019 (well as much as anyone can with Brexit looming large on the horizon) it’s a good chance to look back at the year that was 2018.

Here’s a few of our highlights:

Travel to Work analysis

In May, we published detailed analysis of the travel to work patterns of workers living in the Western Region. The analysis, undertaken by the All Island Research Observatory (AIRO), identified 42 labour catchments across the region.

Our report contains a detailed labour market profile of the principal town in each of the seven counties – Galway, Ennis, Sligo, Letterkenny, Castlebar, Roscommon and Carrick-on-Shannon. All of these labour catchments have significantly more people at work than the resident population of workers in the town, highlighting that they have access to a larger labour supply than may be thought. Read more

Further analysis of 26 smaller labour catchments will be published later in January.

County Infographics

July saw one of our most popular outputs, ‘snapshot’ infographics for each of the seven western counties.  The infographics show a range of facts about each county such as its 2016 population as a percentage of its 1841 population, the percentage with a third level qualification, average time to travel to work and broadband access.  Read more

WDC Insights

During 2018 we continued to publish succinct, 2-page WDC Insights on a range of issues including Electricity Transmission for Renewable Generation, Enterprise in the Western Region 2016, County Incomes in the Western Region, Growth and Change in Regional GVA and Education Levels in the Western Region.

Regional Sectoral Profiles

October 2018 saw the launch of a series of Regional Sectoral Profiles of economic sectors in the Western Region, analysing the latest employment and enterprise data and drawing out key policy issues.  A detailed report and WDC Insights summary is published for each sector.

The first examined was Wholesale & Retail which employs just over 42,000 people in the Western Region, this was followed by Health & Care which employs a similar number.  The next in the series, on the Education sector, will be published later in January.

Policy Submissions

One of the big work areas in any year is making submissions to national and regional policy consultations and 2018 proved particularly busy on the submissions front.

The year kicked off with submissions on the Issues Paper published for both the Northern & Western and Southern Regional Spatial and Economic Strategies (RSES).  Following the consultation period in early 2018, the Draft RSES documents are currently open for public consultation and we’ll be updating on the WDC’s submissions shortly.

Other submissions during 2018 included EirGrid’s Electricity Transmission Development Plan 2017-2027, Seanad Consultation on SMEs and the National Digital Strategy among others.

City-Led Development & Peripheral Regions

In September the WDC sponsored the Annual Conference of the Irish Branch of the Regional Studies Association.  The programme featured two international keynote speakers: from the US Prof. Mark Partridge and from Scotland Dr Andrew Copus.  Both focused on different aspects of the interaction between rural and urban areas.  The day also included a range of presentations from Irish academics and policymakers including WDC Policy Analyst Dr Helen McHenry.  A report on the conference appeared in the Winter edition of the Local Authority Times.  Read more

WDC Insights Blog

We continued to post an (almost!) weekly blog throughout the year with posts on all of the above publications, outputs and activities.  Other topics ranged from Nuts about NUTS and How many farmers are in the Western Region? to Leprechauns in Invisible Regions, Caring for the West and Is e-working on the increase?

To keep up to date with new WDC Policy Analysis outputs published during 2019, sign-up to our Mailing List.  To receive our weekly WDC Insights Policy blog by e-mail, follow the blog. And to follow us on Twitter we’re @WDCInsights.

And if you want to get in touch with any of us directly, we’re firstnamelastname@wdc.ie

Looking forward to working with you in 2019.

Deirdre Frost, Helen McHenry & Pauline White

WDC Insights Christmas Quiz Time Again! Take the 2018 quiz now.

It’s the WDC Insights Christmas Quiz time again.  How much do you know about the Western Region and regional development issues?

Take the quiz now or save it for ‘light reading’ over the holiday…. Or take it in January to inspire you for 2019.

Whenever you do take it, I hope you enjoy it and learn from it.  Thanks to all our blog readers this year.  We hope you have found it interesting, informative and, occasionally fun (rarely you might say…) . See you next year!

The answers are at the end with links to more information and the relevant posts.

You can add up your score and see what it says about your knowledge (and personality).

 

Good Luck!

1       The Western Region  

The Western Development Commission (WDC) is a statutory body that was set up to promote, foster and encourage social and economic development in the Western Region

How many counties are under the remit of the Western Development Commission?

  1. 9
  2. 11
  3. 7

2      Caring for the West

The Western Region is home to 19% of all carers in the State, higher than its 17.4% share of the national population, showing the greater need for, and provision of, unpaid care in the region.

What proportion of the Western Region population recorded themselves as providing unpaid care in census 2016?

  1. 6.3%
  2. 2.8%
  3. 4.5%

3      Disposable Incomes in the Western Region, 2015

According to the CSO data for 2015 (released in 2018), which county in the Western Region had the highest disposable income per person?

  1. Sligo
  2. Galway
  3. Clare

4     The Creative Sector

The WDC has been working on the development of the creative economy for more than ten years, with analysis and projects to stimulate its development.

What is the average number of workers in creative enterprises in the Western Region?

  1. 4 employees per firm
  2. 6 employees per firm
  3. 3 employees per firm

  1. Nuts about NUTS

Much of the data used by WDC Insights at regional level is provided at NUTS 2 and 3 levels.

How many NUTS 2 regions are there in Ireland?

  1. 5 NUTS 2 regions
  2. 3 NUTS 2 regions
  3. 2 NUTS 2 regions

6 Renewable Electricity Generation

The Western Region has some of the best resources for on renewable energy in Europe.  The WDC has continued to highlight the opportunities and needs of this sector.

What proportion of the electricity generation capacity in the Western Region is from renewable sources?

  1. 49.5%
  2. 73.2%
  3. 40.9%

7      Broadband

The WDC has been highlighting rural broadband needs for more than a decade. It is a particular issue for our largely rural region.

What proportion of SMEs in Connacht and Ulster rate their internet connection as ‘poor’ or ‘very poor’?

  1. 73%
  2. 25%
  3. 34%

8      Enterprise in the Western Region

In September the WDC Insights publication.  ‘Enterprise in the Western Region 2016’ analysed the latest data from the CSO’s Business Demography which measured active enterprises in 2016.

How many enterprises were registered in the Western Region in 2016?

  1. 67,432
  2. 95,763
  3. 54,410

9      Farmers in the Western Region

There are three different measures of the number of ‘farmers’ in the Western Region.  The Census of Population was held in 2016, and this provides one measures of those involved in farming, data on CAP beneficiaries for 2016 provides another measure and recently released Revenue data for 2016 provides the third statistic.

Which measure shows the highest number of farmers in the region?

  1. Census 2016
  2. CAP beneficiaries
  3. Revenue data
  1. The Christmas Quiz

Why are you completing the Christmas Quiz today??

  1. You know loads about the Western Region and want to show off
  2. Your boss told you to.
  3. You are afraid Santa Claus won’t come if you don’t get a high score…

 

Answers

Don’t forget to keep count of how many correct answers you have.

 

  1. The Western Region

Answer: 3) 7 counties

The seven counties in the Western Region are: Donegal, Sligo, Leitrim, Roscommon, Mayo, Galway and Clare

Read the WDC Insights blog to find out more about the issues in the region here

 

2          Caring for the West

Answer: 3) 4.5%

For more on caring in the Western Region see the post here.

 

3          Disposable Incomes in the Western Region, 2015

Answer 1) Sligo

For more information on county incomes in the Western Region see this post

 

4          Creative Economy

Answer 2) 2.6 employees per firm

Read more about the creative economy in the Western Region here

 

5          Nuts about NUTS

Answer 2) 3 NUTS2 regions

Read more changes in NUTS 2 regions here

 

6          Renewable electricity in the Western Region

Answer 1) 49.5%

Read more about Renewable electricity in the Western Region here

 

7         Broadband

Answer: 2) 25%

Read more about the issue of rural broadband here, here and here

 

8      Enterprise in the Western Region

Answer: 3) 54,410

Read more about the enterprise in the Western Region here

9        Farmers in the Western Region

Answer 2)  CAP beneficiaries

See here for more information about different measures of the number of ‘farmers’.

10      The Christmas Quiz

Any or all of these answers may be correct.  Give yourself the point for just getting this far and scroll down to see what your results mean.

 

How well did you do?

You got 9 or 10 answers correct

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

 

You got between 4 and 8 answers correct

WELL DONE, a good score but some deficiencies in your knowledge. Perhaps you should read our WDC Insights posts more carefully in 2017!

 

You got between 0 and 3 answers correct

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

 

Happy Christmas!

 

 

Helen McHenry

 

The Health & Care Sector in the Western Region

Today we published the second in our series of ‘Regional Sectoral Profiles’ analysing employment and enterprise data for the Western Region on specific economic sectors and identifying key policy issues. The new report examines the Health & Care Sector, the Western Region’s third largest employer.

The full report ‘The Health & Care Sector in the Western Region: Regional Sectoral Profile’ and the two-pageWDC Insights: The Health & Care Sector in the Western Region’ which summarises the key points can be downloaded here

Health & Care is a broad sector including all those working in hospitals, nursing homes, crèches, day facilities, dental, medical and physiotherapist practices etc.  It includes professional healthcare occupations e.g. nurses, doctors, as well as clerical and administrative roles and care assistants, home carers, childminders and childcare workers.

Discussions of the Health & Care sector generally focus on provision of vital healthcare services. This ‘Regional Sectoral Profile’ however focuses on its role as a key economic sector and regional employer.

Employment & Enterprise in Health & Care

A few of the key findings from the report on employment and enterprise in the sector include:

  • 42,027 people were employed in the Health & Care sector in the Western Region in 2016. This was 12.6% of total employment in the region, higher than the 11.1% share nationally.
  • At 15.5% of all employment, Sligo has the highest share working in this sector in the country, while Leitrim (13.5%) has the second highest share nationally with Galway City and Galway County (both 13%) jointly fourth.
  • Health & Care is the largest employment sector for six out of the region’s 40 urban centres – Letterkenny, Sligo, Ballinasloe, Bearna, Strandhill and Collooney. It must be notes that this data refers to residents of the towns, although some may travel to work elsewhere and proximity to a large hospital is a key factor.
  • The number of people working in Health & Care in the Western Region grew by 14.8% between 2011 and 2016, close to double the growth of total employment in the region (7.5%). All western counties experienced far stronger growth in Health & Care jobs than in jobs generally
  • ‘Residential care & social work’ (nursing homes, crèches, home care) is the largest element of Health & Care in the Western Region accounting for 47.6% of all employment in the sector. ‘Hospital activities’ is next largest (37.2%).
  • 4% of all working women in the Western Region work in Health & Care and it is the largest employment sector for women in the region.
  • In 2016 there were 3,485 Health & Care enterprises registered in the Western Region; that was 6.4% of total enterprises in that year.
  • Sligo (7.8%) and Galway (7.6%) have the highest shares of enterprises in Health & Care across all counties in Ireland, again reinforcing the substantial role played by the sector in the region’s economy.

Key Policy Issues for the Western Region’s Health & Care Sector

As the third largest employer in the Western Region and an area showing strong jobs growth in recent years, the Health & Care sector plays a pivotal role in the regional economy, in addition to providing vital services. Therefore future trends in the sector will have significant regional implications.

Higher reliance on Health & Care in the Western Region:  Health & Care is a more significant employer in the Western Region than nationally.  It plays a critical role in providing opportunities for professional careers, especially in more rural areas where there may be fewer alternatives. It also offers jobs at lower skill levels which are important in providing employment for all sections of the labour force. However this greater reliance on the sector in the region increases its vulnerability to any jobs decline.  While the primary policy focus for Health & Care must be on the provision of quality services, the sector’s parallel role as a provider of jobs, particularly in the Western Region, should also be a factor in policy decisions.

Central role in female employment: The Health & Care sector is the largest employer of women in the Western Region and any future developments in this sector will have a far greater impact on female than male employment levels.

Key driver of job creation: Employment growth in Health & Care in the Western Region was almost twice the region’s average employment growth (2011-2016).  Its role may often be overlooked in debates on recent job creation trends, with more focus on exporting and high-tech businesses.  The role of Health & Care in job creation, as well as future growth opportunities in the sector, should be fully explored in national, regional and local economic development strategies.

An ageing population and growing demand:  Over 16% of the population of Mayo, Leitrim, Roscommon and Sligo are aged 65+ years.  Increased longevity means there is a growing share among the ‘older old’ (80+) with Roscommon (4.4%), Leitrim (4.3%) and Mayo (4.25) the highest in the state.  ‘Residential care & social work’ grew by almost a quarter in the Western Region (2011-2016).  Responding to the needs of an ageing population is one of the greatest challenges facing the Health & Care sector and significant job and growth opportunities exist in effectively meeting this challenge. The Western Region’s older age profile and high level of rurality means it is at the forefront of this growing demand and has an opportunity to develop new and innovative solutions such as learning from successful models across Europe.

Loss of rural GP practices: ‘Medical practice’ was the only Health & Care sub-sector which saw a decline in employment.  It is estimated that 50% of GPs in Leitrim will retire over the next five to seven years, 41% in Mayo and 38% in Roscommon.  If reported difficulties in finding GP replacements persist, this could mean that medical practices in neighbouring towns and villages may close.  The impact on the delivery of health services in rural areas of the loss of medical practices needs to be considered in Government policy, with options such as online delivery of GP services explored as part of the solution.

Skill shortages:  A number of skill shortages exist in the sector and healthcare professionals (nurses, doctors) accounted for a higher share of all employment permits (for non-EU residents) issued for the West and Border regions than nationally.  Care workers and childminders are occupations characterised by high turnover and some employers may be experiencing difficulty in attracting and retaining qualified care and childcare workers. Changing demographics, along with Government policy, will impact on the demand for Health & Care skills.  Initiatives to increase the number of people with qualifications in care, as well as to improve working conditions and increase its attractiveness as a job option, are important for the sector’s capacity to meet future needs.

Download the full report ‘The Health & Care Sector in the Western Region: Regional Sectoral Profile’ and the two-pageWDC Insights: The Health & Care Sector in the Western Region’ which summarises the key points, here

 

Payments and income from farming in the Western Region

As discussed in the last blog post on farmers in the Western Region, agriculture is an important sector of Irish economy and particularly important to the rural economy and society.  In this post different measures of payments and income are examined using three different sources.  Data on CAP beneficiaries is available at county level, showing how much is received in each county, while the recently published Revenue data for 2016 provides information on average Farming Income and Gross Income for the ‘farming cases’.  Finally, the National Farm Survey, conducted by Teagasc, provides detailed information on farming income.

Each of these sources is measuring different things for different purposes so it is useful to compare them to add to our understanding of farming in the Western Region.

 

Payments from the CAP.

The Common Agricultural Policy (CAP) contributes a significant amount to the local economy.  In 2016 more than €525m was received from the CAP by the 54,215 beneficiaries in the Western Region (Table 1) with an average of €9,689 per recipient in the Western Region.

Table 1: CAP beneficiaries in the Western Region in 2016

Source: DAFM CAP Beneficiaries Database

Galway (€ 135m) and Mayo (€105m) had the highest receipts and also had the highest numbers of recipients, while Leitrim (€35m) and Sligo (€37m) had the lowest total receipts.  However, when the average receipt is considered (Figure 1) the pattern is different.

Figure 1: Average received by CAP beneficiaries in the Western Region

Source: DAFM CAP Beneficiaries Database 2016

Average receipts in 2016 were highest in Clare (€10,945), Galway (€10,292), and Roscommon (€10,050), but these were still among the lowest in the country (Clare has the 17th highest average receipt, and average receipts in Galway and Roscommon were 20th and 21st of the 26 counties). The four lowest average payments in the country were in the Western Region with Sligo the lowest in the country.  In contrast, the highest average receipts were in Dublin (€19,062 and which has a very small number of beneficiaries (867)) and in the South East with €17,806 the average in Waterford, €17,205 the average in Kilkenny and €16,194 the average in Carlow.

The very significant different in receipts between the Western Region and the South East reflect both farm size, and the enterprise type.

 

Farm Incomes- Revenue Data

In addition to information about numbers of farming cases, data is available from Revenue for both average Gross income and average Farming Income.   The data for Revenue cases from farming is from the Revenue Statistics and Economic Research Branch publication ‘The Farming Sector in Ireland: A Profile of Revenue Data’ available here.

In 2016 nationally there were 137,109 ‘farmer’ cases with an average Farming Income of €21,952.  There were 40,709 ‘farmer’ cases in the Western Region with an average Farming Income of €13,338.  Data for each of the Western Region counties is shown in Figure 2 below.

Figure 2: Average Farm Income by county- Revenue data

Source: The farming sector in Ireland: A profile from Revenue data, 2016 data, published 2018

The lowest average Farm Income is in Leitrim (€10,679), while the highest was in Clare (€16,701), but the seven Western Region counties are the seven counties with the lowest average Farm Income nationally.  Waterford has the highest average Farm Income (€35,026), followed by Kilkenny (€32,408) and Kildare (€32,292)

Interestingly, for farmer cases the Revenue also provides information about the average Gross income.  This includes income from other sources (the two most significant of these are PAYE income from employment and income from other business sources). It therefore includes income from off farm work.  It should be remembered that where couples are jointly assessed this includes the earnings of both.

Figure 3: Average Gross Income and average Farm Income in Western Region counties –revenue data

Source: The farming sector in Ireland: A profile from Revenue data, 2016 data, published 2018

Non farm income is very significant in the Western Region, accounting for most of the income in the farming cases in the Western Region indicating the importance of off farm employment in farming households.

The National Farm Survey

The final source of data on farm income is the National Farm Survey (NFS) which has been conducted by Teagasc on an annual basis since 1972.  The survey is operated as part of the Farm Accountancy Data Network of the EU and fulfils Ireland’s statutory obligation to provide data on farm output, costs and income to the European Commission. A random, nationally representative sample is selected annually in conjunction with the Central Statistics Office (CSO).  In 2016 the sample of 861 farms which represented 84,736 farms nationally.  Pig and Poultry farms are not included in the survey.

Data from the NFS is not available at county level, but Figure 4 below shows the Family Farm Income[1] for 2016 for each of the NUTS 3 regions.

Figure 4: National Farm Survey Family Farm Income by Region, 2016

Source: Teagasc, 2017, National Farm Survey 2016

The Border and the West regions, which account for six of the seven Western Region counties have the lowest Family Farm Income in 2016.  Clare is part of the Mid West region.

Comparing the data.

As Family Farm Income from the National Farm Survey is not available at county level, it is useful to compare the data on CAP beneficiaries and from Revenue tax cases at regional level.  Figure 5 shows the three different payment and income measures for the NUTS 3 regions.

In most regions, except the Border (and it should be noted the NFS does not include pigs and poultry which are concentrated in the Region) the Family Farm Income is the highest figure, while the average Farm Income for Revenue is lower.  As expected, given that it is only one of the elements of farm income, CAP receipts are lower than either income figure.

Figure 5: DAFM receipts, Revenue average Farm Income and NFS Family Farm Income 2016 by Region

Source: Teagasc National Farm Survey, 2016; The farming sector in Ireland: A profile from Revenue data, 2016 data, published 2018; DAFM CAP Beneficiaries Database2016

 

In the Border, Midland and the West Region in particular, the CAP receipts are a higher proportion of income figures, indicating the greater contribution of the subsidies to income in these regions.

Conclusions

While these three different measures are derived from different sources they are all consistent.  The West and Border have lowest income and lowest average CAP benefit as well as lower taxable income from farming.  The pattern of farming is different in these regions, with different enterprise types, smaller farm sizes and greater reliance on off farm income.  Yet farming in these regions is integral to their rural economy, the rural landscape and CAP payments and their multipliers make a significant contribution the local economy.  These are all important considerations when negotiating the next CAP.

 

 

Helen McHenry

[1] Family Farm Income represents the return from farming for the farm family to their labour, land and capital. It does not include non-farm income.  See here for more information.

How important is Wholesale & Retail in the Western Region?

The WDC recently published the first in a series of ‘Regional Sectoral Profiles’ analysing specific economic sectors in the Western Region and identifying key policy issues.  The first sector examined is Wholesale & Retail.  Two publications are available:

  • WDC Insights: Wholesale & Retail in the Western Region (2-page summary)
  • Wholesale & Retail in the Western Region: Regional Sectoral Profile (full report)

Download both here

Wholesale & Retail Employment in the Western Region

42,510 people were employed in the Wholesale & Retail sector in the Western Region in 2016. At 12.7% of total employment, it is the region’s second largest employment sector, after Industry.  It is somewhat less important in the region than nationally (Fig. 1).  At 13.3% of all employment, it is Ireland’s largest employer.

Among western counties, Wholesale & Retail is most significant in Mayo (14.4%) and least so in Clare (11.2%).  Two other largely rural counties (Roscommon and Donegal) had the next highest shares working in the sector in the region.  Wholesale & Retail accounted for a higher share of total employment in 2016 than a decade earlier in all western counties (except Donegal) and most notably in the most rural counties.

Fig. 1: Percentage of total employment in the Wholesale & Retail sector in Western Region and state, 2006, 2011 and 2016. Source: CSO, Census 2016: Summary Results Part 2, Table EZ011; CSO, Census 2006: Volume 7 – Principal Economic Status and Industries, Table C0713

52.3% of people at work in the Wholesale & Retail sector in the Western Region are male, similar to the national average.  Males make up the majority in all western counties (at 55.2% Sligo has the greatest male majority) except Clare (50.8% female) and Galway city (50.9% female).

Wholesale & Retail Employment in western towns

Wholesale & Retail is the largest employment sector for 16 out of the region’s 40 urban centres.  There is no clearly discernible pattern in the relative importance (as a percentage of total employment) of the sector across the 40 towns, ranked by descending size (Fig. 2). Factors such as location, distance from larger urban centres, diversity of its economic profile and alternative job options combine with a town’s size to determine the role played by the sector.

Boyle (20.2%), Ballina (20%) and Castlebar (19.1%) have the highest shares working in Wholesale & Retail in the region. These, and other towns with a high share, are important rural service centres located quite some distance from larger centres and serving wide rural hinterlands.  The sector is least important for Strandhill, Newmarket-on-Fergus and Moycullen; all are towns located close to large urban centres which are likely their main retail centre.

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

Self-employment in Wholesale & Retail

The Western Region is characterised by greater self-employment in Wholesale & Retail than the national average (15.5% of total employment in the sector is self-employment compared with 12.7% in the state).  Every western county, except Galway City, also has an above average share of self-employment, meaning the sector in the region is characterised by more family or owner/ manager run businesses, likely smaller in scale.

The share of self-employment declined in all western counties (except Sligo) between 2011 and 2016. This indicates a changing composition of the sector with fewer family or owner/manager run Wholesale & Retail businesses and the expansion of multiples and chain stores with a growing share of those working in the sector being employees.

Employment in Wholesale & Retail sub-sectors

Census data on employment in the Wholesale & Retail sector is sub-divided into 17 separate activities.  For ease of presentation here these are grouped into five broad areas: Motor trades; Wholesale; Food/beverage retail; Clothing/footwear retail; and All other retail.[1]

In 2016, the largest sub-sector in the Western Region was ‘Food/beverage retail’ (Fig. 3) accounting for 27.7% of all employment in the Wholesale & Retail sector. The largest element of this is supermarkets.  The next largest sub-sector is ‘All other retail’ (e.g. furniture, computers, petrol stations etc.) followed by ‘Wholesale’.  The relative importance of the five sub-sectors differs across counties. Generally, ‘Food/beverage retail’ is the largest with close to 30% working in this sub-sector in Clare and Leitrim.  Two exceptions are Galway City and Roscommon where ‘All other retail’ is bigger.

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

The sub-sectors have performed differently over time. For the Western Region, ‘Motor trades’ saw the most significant jobs growth between 2011 and 2016 reflecting strong recent growth in car sales and recovery from substantial job losses during the recession. ‘Clothing/footwear retail’ was the only other area to show some growth with the other three sub-sectors declining in the region.  This is in contrast to the national picture where all sub-sectors grew except ‘Food/beverage retail’.

Key Policy Issues

Wholesale & Retail plays a critical role in the regional and rural economy as it is more widely dispersed than many other sectors. It is a highly visible sector and its performance has a major impact on the viability and vibrancy of towns.  It also provides important job options for people with lower skill levels and younger people.  There has been growing policy interest in this sector in the past number of years. Some of the key policy issues include:

  • Increased consumer mobility & rural areas: The trend of travelling to large urban centres to avail of wider retail choice presents opportunities for the region’s largest centres but may have negative consequences for small and medium-sized rural towns.
  • Town centre renewal: Towns are trying to adapt to their changing role. Retail is just one of the services they provide and for many it is declining in relative importance.  Taking a broad approach to town centre renewal is critical to making towns more attractive retail and service destinations.
  • Growth of online sales: Online sales continue to grow but the majority of spending leaks out of Ireland. While online can be seen as a threat to traditional retail, it also presents an opportunity to expand beyond local markets.
  • Declining self-employment: While self-employment remains higher in the region than elsewhere, it is declining. Fewer family or owner/manager run enterprises impacts on the local distinctiveness of the retail offering of individual towns.
  • Quality of employment and skills development: While Wholesale & Retail offers many high quality jobs, it also employs a lot of younger and lower skilled workers. Improving the quality and security of jobs in this sector is important for worker rights and also for the sector’s ability to adapt to emerging trends.

Opportunities exist to grow online activity and to restructure the retail and service offering of towns to meet changing consumer needs.  However, grasping these opportunities will depend on proactive policy to support the sector, a willingness to adapt among retailers, increased capacity for businesses to compete with larger national or global retailers and a collaborative approach to help towns adapt to their changing function.

More detailed analysis and discussion of these policy issues are available in ‘Wholesale & Retail in the Western Region: Regional Sectoral Profile

Pauline White

[1] Appendix 1 of the report provides data for all 17 activities.

How many farmers are in the Western Region?

Agriculture has traditionally been a very important sector of Irish economy and this, along with the subsidies from the Common Agricultural Policy (CAP), has meant that it is also one of the most measured sectors in the economy.

We would therefore expect to have a very good idea how many farmers are in the Western Region and it can be argued that we do.  However, because there are a variety of ways in which a person farming or receiving income from farming may be defined, there is no single definitive answer.  Instead the numbers depend on what is being measured.

In this post I look at three different measures of ‘farmer’ in the Western Region (the seven counties under the WDC remit), and discuss why there is so much variation among them.  The Census of Population was held in 2016, and this provides one measures of those involved in farming, data on CAP beneficiaries for 2016 provides another measure and recently released Revenue data for 2016 provides the third statistic.

In 2016 in the Western Region there were 20,880 people whose occupation was ‘farmer’ according the Census of Population (see Fig. 1), while there were 40,709 Revenue ‘farmer’ cases (see discussion below) and 54,215 CAP Beneficiaries.

Figure 1: Three measures of ‘farmer’ numbers in the Western Region 

 

Source: CSO Census of Population, 2016, Profile 11  Employment Occupations and Industry, Table EB049; Revenue Statistics and Economic Research: The Farming Sector in Ireland: A Profile from Revenue Data Statistics Update2018, Table 5; DAFM CAP Beneficiaries 2016 database. Western Region totals are own calculations

 

There are clearly very significant differences among these three measures, so what do they mean in terms of numbers in farming?

 

The Census of Population 2016

The smallest measure of farmer numbers in the Western Region is from the Census of Population in 2016.  The number of famers in this Census is based on detailed occupational data for those who have described their main occupation as ‘farmer’.  This is one of 328 categories and nationally ‘farmer’ is the second largest occupation group accounting for 3.5% of the work force.  As noted the numbers here refer to farmers rather than those working in agriculture or in other areas who are part of the broader category of Farmers fisheries and forestry workers (22,733 people in the Western Region).

The most important thing to note for this measure of ‘farmer’ is that those categorised here are only those who consider their main occupation to be farmer.  Those with other work who farm on a part time basis or for other reasons do not consider farming to be their main occupation are not included here.  The decision as to what is their main occupation is made by the person filling in the census form.

Figure 2: Excerpt from 2016 Census of Population form

Source: CSO https://www.cso.ie/en/census/2016censusforms/

Revenue Cases: Farming

The data for Revenue cases from farming is from the Revenue Statistics and Economic Research Branch publication ‘The Farming Sector in Ireland: A Profile of Revenue Data’.  The first report was prepared in 2015 to add to the evidence available on the agricultural sector in Ireland from both an economic and taxation perspective.  Data tables in this report are updated annually with the most recent available for 2016 published in August 2018.  Both are available here.

The 2015 report provides the detailed explanation of the ‘farmer cases’ included.  There were three methods of identifying farmers on Revenue records:

  • Form 11 tax returns, filed annually by self-assessed Income Tax payers which include a check box for farmers.
  • Revenue codes its taxpayer register by NACE code and the agricultural related sectors (0-190) can be identified.
  • Through a data exchange with the Department of Agriculture, Food & the Marine (DAFM), Revenue receives information on the recipients of agricultural payments (such as the single farm payment). This information is linked to Revenue records.

Farmer cases are any of those which meet one of the three criteria noted above (a case may meet all three but is counted once).  The majority of farmers are self-assessed income tax payers and as such are required to file a Form 11 return of income for each tax year.  The file covers the vast majority of farmers in receipt of DAFM payments. Most are registered with Revenue as self-assessed individuals. Some cases hold PAYE registrations only, effectively employees within the farming sector. There are also a small number of incorporated farmers, registered for Corporation Tax.

In addition to information about numbers of farming cases, data is available from Revenue for both average Gross income and average Farming Income.  In 2016 nationally there were 137,109 ‘farmer’ cases with an average faming income of €21,952.  There were 40,709 ‘farmer’ cases in the Western Region with an average farming income of €13,338

 

CAP Beneficiaries

Data on CAP beneficiaries is drawn from the Department of Agriculture, Food and the Marine (DAFM) database.  This provides information on all farmers or companies who received money under CAP in 2016.  This is a broad definition, including all kinds of CAP payments and the database provides the names and municipality of those who received more than €1,500 in that year.   This includes a number of companies but these must fall within the definition of active farmers (see here for a more detailed discussion of active farmer definitions).

Nationally, 133,182 received CAP payments in 2016, with a total of €1,614m received, an average payment of €12,121.  In the Western Region in the same year €525m was paid to 54,215 beneficiaries, an average payment of €9,689.

 

What do the categories tell us about farmers in the Western Region?

Clearly the three categories of ‘farmers’ discussed above are all defined differently.  The census definition is the strictest, these are people whose main occupation is farming and if they do have another occupation it is of lesser importance.  The second category includes all of those making Revenue returns in relation to farming income, but this may not be their main income source.  They may have other earnings but they are in some way involved in farming in the Region.  The final category of ‘farmer’ is the CAP beneficiaries.  In the Western Region this is the largest group, taking in all those who have received a CAP payment.  Some of these may not be making Revenue returns and may only be receiving very small payments (a significant number of CAP beneficiaries receive less than €1,500 annually).  This final, largest, group is likely to include all of those with some connection to farming and may be categorised as ‘active farmers’

In contrast, nationally there were more Revenue farming cases than there were CAP beneficiaries, in other words, more had farming income for the purposes of taxation than were in receipt of CAP payments.  The Revenue farming cases includes a variety of income sources associated with farming and so this may be part of the explanation for this.

Nationally, 52% of those claiming CAP payments declared their principal occupation as ‘farmer’ on the Census, compared to 39% in the Western Region indicating that, as we know, more farmers in the Western Region have main occupations other than farming and are farming part time.  Revenue farming cases are 103% of CAP beneficiaries nationally while they are 75% in the Western Region.  For both of these, it should be noted that Revenue cases may not be a complete subset of the CAP beneficiaries, in other words not all Revenue cases for farming will be CAP beneficiaries, and vice versa.  Both nationally and in the Western Region about the number of those who consider farming to be their main occupation is about half the number of Revenue cases (51%).

Farmers in Western Region Counties

The three measures of ‘farmer’ numbers discussed above are available at county level (Figure 2).  Again the highest measure in each county is CAP beneficiaries, followed by Revenue cases and as would be expected the lowest number is those who declared their principal occupation as farmers on the Census of Population in 2016.

Figure 3: Farmer numbers in Western Region counties

Source: CSO Census of Population, 2016, Profile 11  Employment Occupations and Industry, Table EB049; Revenue Statistics and Economic Research: The Farming Sector in Ireland: A Profile from Revenue Data Statistics Update2018, Table 5; DAFM CAP Beneficiaries 2016 database.

The disparity among these three measures varies among counties, as it did between figures for the State and the Western Region as discussed above.  In the Western Region those with a main occupation as ‘farmer’ (Census of Population)  as a proportion of CAP Beneficiaries was lowest in Leitrim (26%) and Mayo (35%) counties (in all Western Region counties the number of CAP beneficiaries was higher than the number of Revenue cases). Clare, has the highest number with the main occupation ‘farmer’ at half the number of CAP beneficiaries and Sligo (43%) was the next highest.

 

So, how many farmers?

So in measuring how many farmers there are in the Western Region, we need to decide what we mean by a farmer.  Is it someone who considers being a famer their main occupation? Or someone who has some farming income which is declared to the Revenue, or someone who receives a CAP payment?

In this post different farmer definitions and numbers have been discussed giving us insight into different measures and some of the sector characteristics.  In the next post on this topic different measures of income will be considered.

 

Helen McHenry