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How are we doing? Annual earning in Western Region and other counties

Data on earnings of employees in different counties has just been released by the CSO, providing another important contribution to our understanding of local and regional economic development.

Earnings Analysis Using Administrative Data Sources (EAADS) provides statistics on earnings for which the primary data source is the Revenue Commissioner’s P35L dataset of employee annual earnings which is linked to CSO and other data to provide economic and demographic characteristics.  This new data, along with the Geographical Profiles of Income (also released for the first time this year and discussed on the blog here) and the County Incomes data (discussed here) gives us an opportunity to triangulate different data and gain a better understanding of patterns in earnings and some of the factors contributing to income differences in the region.  Having this data at county level allows for a more nuanced understanding of the situation and trends in the Western Region.

In this post the EADDS annual earnings data is discussed for Western Region counties.  It should be remembered that this data is specifically employee earnings data which is just one element of individual or household incomes.  Other incomes sources (e.g. social welfare, earnings from wealth or profits from business) are not included in this data set.

Annual Earnings, 2018

Looking first at median[1] annual earnings[2] for 2018 (Figure 1), even though all Western Region counties (green) are below the national figure of €36,095 both Galway (€35,632) and Clare (€35,568) are only slightly below, in sixth and seventh place nationally.

Note Total includes Northern Ireland counties not listed above.

Source: CSO Ireland, 2019, Earnings Analysis Using Administrative Data Sources Table 8.15 Median1 annual earnings by county and sex 2018

Donegal had the lowest earnings (€29,298), almost a thousand euro less than Monaghan, the next highest, and more than €10,000 less than the earnings in Dublin (the highest county (€39,408).  Earnings in Roscommon are higher than might have been expected (€34,082, 13th place) from other data such as that for County Incomes, though  in line with Geographical Profiles of Income.

Annual Earnings in Western Region counties

Focussing more specifically on the range of earnings per employee in the Western Region (Figure 2), the gap between the lowest (Donegal) and the highest (Galway) is a €6,334 per year while annual earnings in Mayo and Leitrim are both around €2,500 less than in Galway.  There is only €64 difference in the annual median income per person in Clare and Galway.

Note Total includes Northern Ireland counties not listed above.

Source: CSO Ireland, 2019, Earnings Analysis Using Administrative Data Sources Table 8.15 Median1 annual earnings by county and sex 2018

Changes in Mean Earnings 2016-2018

This data is available for the years 2016, 2017 and 2018.  While this covers a relatively short period it is interesting to examine the change in mean[3] annual earnings over this period throughout Ireland (Figure 3).  Nationally earnings grew by 6.1% over the period with the highest growth rate in Dublin (7.6%) followed by Cork (6.6%) and Kilkenny (6.2%).  The lowest rates of growth were in Cavan (4.4% and Longford (4.4%).

Note: Total includes Northern Ireland counties not listed above.

Source: CSO Ireland, 2019, Earnings Analysis Using Administrative Data Sources Table 8.14 Mean annual earnings by county and sex

Looking more closely at the Western Region (Figure 4), the highest rate of earnings growth was in

Galway (5.8%), and the lowest in Roscommon (4.7%) and Sligo (4.7%).  No Western Region county had earnings growth higher than the national rate.

Note: Total includes Northern Ireland counties not listed above.

Source: CSO Ireland, 2019, Earnings Analysis Using Administrative Data Sources Table 8.14 Mean annual earnings by county and sex

Gender Differences in Earnings

County data is also available by sex, so it is possible to compare earnings in each county for males and females (Figure 5).  In all counties male earnings were higher than female earnings in 2018, with the largest difference in Cork, a very significant €10,205 per year (female earnings were only 76% of male).  Nationally the difference between male and female earnings was €7,394 and the smallest difference in both amount and proportion was in Donegal (€3,153, female earnings 90% of male).  In general, the largest differences between male and female earnings were in the highest earning counties, but Waterford (€8,511), Limerick (€8,318) and Kerry (€7,234), which has the third lowest medial annual earnings, were exceptions to this.

Source: Source: CSO Ireland, 2019, Earnings Analysis Using Administrative Data Sources Table 8.15 Median annual earnings by county and sex

Gender Differences in Earnings in the Western Region

The difference between male and female earnings was smallest in the Western Region.  Six of the nine counties where female earnings were 85% or more of male earnings were in our Region.  Sligo had the narrowest gap nationally (female earnings 91% of male), followed by Donegal (90%), Leitrim (89%), Galway and Mayo (86%) and Roscommon (85%)[4].  Clare was the exception in the region, with female earnings only 80% of male earnings.

The difference in the Western Region are shown more clearly in Figure 6 which highlights the earnings gap (percentage difference in what females earn compared to males).  Clearly Sligo (9%) and Donegal (11%) perform best.  Nationally the picture is bleaker with a 23% annual earnings gap, and in Clare males earn 25% more than females.

Source: Source: CSO Ireland, 2019, Earnings Analysis Using Administrative Data Sources Table 8.15 Median annual earnings by county and sex

Some of this earnings gap is likely to be accounted for by the higher instance of part time working among females. The differences may also relate to earning levels in the different sectors where men and women tend to work, as well as differences in employment types.  Nonetheless, the gap in earnings is very significant but, at least in relation to this statistic, the Western Region is a good performer.  The prevalence of public sector employment in the Western Region (discussed here), along with employment in Education (3 out of 4 people working in the Education sector in the Western Region are women) and Health (21.4% of all working women in the Western Region work in Health & Care, it is the largest employment sector for women in the region), probably influences this.

Changes in male and female earnings over time.

There is no clear pattern for the growth in mean earnings for males and females between 2016 and 2018 in the Western Region counties (Figure 7 below).  In four of the seven Western Region counties female earnings increased by more than male earnings between 2016 and 2018.  This was also the situation nationally (though the difference is small (0.1%)).   Female earnings in Sligo grew by 5.0% while male earnings in the same period grew by 4.0%.  In Clare the difference in earnings growth was more significant (5.7% for females and 4.3% for males).  Galway had the largest growth in female earnings over the period in the region at 6.1%, while male earnings grew by 5.3%.  If this pattern were to continue the gap in male and female earnings would narrow, or even disappear.

Source: Source: CSO Ireland, 2019, Earnings Analysis Using Administrative Data Sources Table 8.14 Mean annual earnings by county and sex

In contrast in three Western Region counties (and a total of nine counties nationally) male earnings grew by more than female earnings between 2016 and 2018.  Leitrim and Roscommon had the lowest female earning growth (4.4%) in the region and nationally.  The difference was most significant in Leitrim where male earnings grew by 5.3% over the same period.  In Donegal the difference was less marked (4.8% for males and 4.6% for females).  Unlike the other Western Region counties discussed above, if this pattern persists in these counties the gap in male and female earnings will widen.

Conclusion

This data set is focused on earning for those in employment rather than broader income data covering households or adults not in employment so it does not give a full picture of income levels.  It is, nonetheless, very useful to have this data at county level.  We can now make robust comparisons between counties and see some of the changes over time.  In future analysis it may be possible to consider in more depth how the different employment patterns and sectors in the counties in turn influence earnings.  Similarly correlations between education and training levels, and skill sets in the counties will help us better understand the needs and opportunities for counties and regions.

In the New Year I hope to have time to compare the data in this release with the other income data available at county level to get a better understanding of what each source is telling us about the trends and differences in the earnings and incomes in the Western Region.

 

Helen McHenry

 

[1] 1Median annual earnings: Half of the employees earn more than this amount and half earn less.  Median is used as it reduces the influence of outliers, in particular exceptionally high earners who could increase the mean significantly.

[2] Employees who worked for less than 50 weeks in the reference year are excluded from the calculations for annual earnings. This is done to improve comparability of the data over time.

[3] Mean is used here for comparison over time to maintain consistency with gender data discussed later.

[4] Monaghan (86%), Cavan (85%) and Kilkenny (85%) were the other counties.

e-Work, Remote work and Hubs, Some Recent Evidence

Introduction

The WDC produced the Policy Briefing e-Working in the Western Region in March 2017, see here. This briefing aimed to quantify the extent of e-working in the Western Region and nationally and set out policy recommendations. Since then e-working or remote working and co-working spaces such as hubs have received a lot of attention, but to what extent is the activity on the increase?

In the Policy briefing, the WDC noted that the extent of e-Working is hard to measure, in part because of the paucity of data, and in part because the practice is sometimes not very visible; it is often in the absence of company policy and at the discretion of local management. Some recent data in relation to official statistics and company practice is presented here.

CSO Pilot for Census 2021

There has been limited official statistics measuring the incidence of working from home. To date the Census has asked the question ‘how you usually travel to work’? with one of the answers being ‘work mainly at or from home’. This is very limited as it only captures those that work from home most of the working week and excludes those who work from home one or two days per week, which some suggest is the most common pattern.

The CSO invited submissions to the consultation on questions for inclusion in Census 2021. In its submission, the WDC advocated for the inclusion of a question to more effectively capture the extent of Working from home/ e-working. Following the consultation exercise and a pilot exercise the CSO have now agreed to include a question measuring the number of days people work from home on a weekly basis in Census 2021. The results of the pilot survey were released earlier this year and they provide an insight into e-working. Some of the findings are highlighted below.

Among those at work, 18% declared they worked from home. The level of non-response among workers was low at 3%. Of those working from home, the breakdown by number of days was as follows:

Working from home 1 day per week was the most popular practice (35%), followed by 2 days a week (13%) and 5 days per week (by 11%). It should be noted over a quarter of those who said they worked from home did not state the number of days. One possibility may be that their pattern changes on a weekly basis.

Profile of those working from home

  • The pilot results showed that the percentage of those working from home increased as age increased, peaking at 19.6% of those at work in the age group 45-49. The proportion of home workers decreased among workers in older age groups. Among those in the 45-49 year age group, 32% worked one day from home.
  • Approximately 60% of people who work from home were male.
  • There were notable differences in the occupation of those who worked from home. e.g. 13.5% of those who worked from home worked in the ‘Science, research, engineering and technology professional’ occupation category.
  • In contrast only 0.6% of those who worked from home indicated they were in the ‘Process, plant and machine operatives’ occupation category
  • Over half of those who worked in ‘Computer programming, consultancy and information service activities’ indicated that they worked from home. This industry comprised 3% of all workers in the Pilot but 11% of all home workers were in this industry.
  • Of those who worked from home, 79% had fixed broadband internet, 18% had mobile broadband internet, and 3% indicated they had no internet connection. It is possible that that much of this 3% do not depend on internet access to conduct their work, for example those engaged in agriculture. See the CSO release here.

The WDC very much welcomes the inclusion by the CSO of the question on working from home in the next Census. This will allow a more thorough analysis of the practice based on comprehensive Census data.

Company Practice- Incidence of e-work in Ireland

Another part of the evidence base is data collected by companies on the extent to which they provide for flexible work practices such as e-working and the extent to which this is practiced by their employees.

IBEC have collected survey data on the extent of e-working for a few years now. Data has been recently published which shows an increasing prevalence of the practice based on a survey of IBEC members. For example,

  • In 2018, 37% of IBEC members (152 companies) had a practice of e-Working/ home-working, on one or two days per week basis, up from 30% (110) in 2016.
  • In 2018, 7% had a practice of e-Working five days per week, up from 5% in 2016.
  • The IBEC survey shows that the likelihood of e-Working among companies increases with company size, so that 54% of companies with 500+ employees cite a practice of e-Working on a 1 or 2 days a week basis.
  • There is a slightly higher rate of e-Work among foreign owned compared to Irish owned companies, 40% and 33% respectively, and both these figures are up on two years previously – 34% and 27% respectively.
  • Sectorally the highest rates are within the Electronic services sector (69%), followed by the Financial services sector (58%).
  • At a regional level IBEC members in the Dublin region have the highest incidence, with almost half (49%) report having an e-working policy of 1-2 days working from home per week. This rate drops to one-third of companies in the Cork region, one-quarter in the Mid-West and South-East and 24% in the West/North West.

This regional variation supports the idea that at least some of the e-working demand and take-up by employers is driven by congestion in larger urban centres.

Demand for e-working/co-working spaces/ Hubs

Another aspect of e-working or remote working is where the worker works from a hub rather than home. The success of initiatives variously called e-working spaces/ co-working spaces/ hubs also suggests e-working is on the increase. Some working spaces are funded by Department of Business, Enterprise and Innovation and some by the Department of Rural and Community Development. The hubs are variously classed as innovation, enterprise or community hubs, and many are focussed on start-ups and incubation spaces as well as providing e-working spaces for individual employees.

The Western Development Commission is coordinating an initiative with the Department of Community and Rural Development (DCRD) called the Atlantic Economic Corridor (AEC) Enterprise Hubs project. This three year project aims to create an interconnected community network from the 101 hubs identified in the AEC region (the region from Donegal to Kerry) along the Western Seaboard.

This week the WDC is convening two workshops, one in Limerick (19th November) and the second in Sligo (Thursday 21st November) aimed at bringing all key stakeholders together to work together to optimise the operation of the hubs and how they can support regional and rural development, e-workers and remote workers throughout the region. For further information see here for more information.

 

 

Deirdre Frost

Agency Workers – How Many Are There and Where do they Work?

Introduction

There is much discussion about the growth of ‘atypical’ forms of work – such as e-working, remote working, the gig, shared economy and temporary work etc.

The WDC has previously examined various aspects of atypical ways of working, identifying the extent to which it occurs in the Western Region, whether patterns differ to that elsewhere in the country, all aimed at informing labour market policy and identifying recommendations to support better employment opportunities in the Region.

The WDC Policy Briefing (No. 7) e-Working in the Western Region: A Review of the Evidence, examined the extent of e-work (also referred to as teleworking or remote working) in the Western Region, see here. Working at or from home can take different forms and this Policy Briefing examines e-working in traditional employer-employee relationships. The WDC also published case-studies of e-working in the Western Region which highlights a wide range of e-working experiences, see here.

A two page WDC Insights paper examined the gig or shared economy and how broadband and online platforms have enabled new forms of work and income generation to emerge. The paper examines the evidence on the extent to which Gig economy exists in the Western Region, download here.

In the third of the series, the WDC examined working from home. Based on Census of Population data which identifies whether people work ‘mainly at or from home’. The Census definition is self-assigned and can include those who work full-time from home or working from home on at least three days of a five day working week, see here. The WDC have suggested a change to Census 2021, to which the CSO has agreed, which will include a question asking people to list the number of days per week in which they work from home.

Agency Worker Employment

Another aspect of atypical working includes agency worker employment. Sometimes it is suggested that this type of employment is on the rise and is often less secure or more precarious than traditional employment forms.  Agency work, especially that which is temporary, is often considered insecure employment. Is it a phenomenon largely associated with periods of high unemployment and a fragile economy where employers are reluctant to recruit permanent employees or is it a feature of the business model of some companies?

Research conducted for the European Parliament found evidence of an increase in temporary employment as a consequence of the global economic crash a decade ago. The report noted, The financial crisis and its aftermath has been one driver affecting risk of precariousness in Europe. As employers and employees find themselves operating in a more competitive and uncertain context post-crisis, new hirings have increasingly taken place on the basis of temporary and marginal part-time contracts. This rise in atypical contracting has meant that job insecurity has increased significantly in some countries, such as Portugal, Spain, Ireland, Latvia and Greece, involuntary temporary work has increased significantly in Ireland, but also in Latvia and involuntary part-time working has increased significantly in Italy, Lithuania, Spain, Ireland, Latvia and Greece. The link to the full report (5.4MB) is here.

Examining more recent data at a regional level in Ireland, the CSO provide a broad regional breakdown at NUTS 3 level. In this blogpost we review the latest CSO data on agency worker employment examining trends and how the regions compare, see here for full release published in August 2019.

CSO definition

The CSO Labour Force Survey captures the levels of agency workers by asking the following question of all employees in the LFS: Do you have a contract with an employment agency that placed you in your current job and your salary? Yes or No. Responses are therefore based on self-reporting.

Nationally, in Q4 2017, there were 56,200 employees classified as agency workers, and in Q1 2019 the number had decreased to 50,400, a decrease of 5,800.

Examining trends by region, the trends are somewhat different as graph 1 below shows. Both the Northern and Western region and the Eastern and Midland region have a somewhat similar trend, albeit at different levels, unsurprising given the relative size of the numbers employed in each region.

In the Northern and Western Region, (depicted by the black line), the numbers of agency workers at the start of the period was 12,700, there was a decline to 4,300 in Q4 2018 and at the end of the period (Q1 2019) it was 7,500. It should be noted that the LFS is a survey and the results are weighted to conform to population estimates broken down by age, sex and region. Where there are smaller numbers, estimates are considered to have a wider margin of error and so should be treated with caution. In the data above, this wider margin of error has occurred where numbers fall below 7,500.

The Eastern and Midland Region (the orange line), starts with a level of agency workers of 27,000 at the end of 2017. At the end of the period the number of agency workers in the Eastern and Midland region was 22,200.

The Southern region (green line), displays a different trend, starting at 16,500, rising to 20,900 in Q2 2018, dipping at the end of Q4 2018 and then rising again in Q1 2019 to 20,700. It is not clear why the trend in the Southern region is somewhat different and this will be discussed further below.

Regional Share of Agency Workers

Examining agency workers as a share and proportion of all employees, Graph 2 below shows the regional share of employees who are agency workers over the period Q4 2017 to Q1 2019.

At the end of the period, in Q1 2019, the Northern & Western Region accounts for 14.9% of all agency workers in the country, the Southern Region accounts for 41.1% and the Eastern and Midland region accounts for 44%. The respective shares have changed over the last two years, with the Northern and Western Region accounting for a decreased share (22.6% in Q4 2017 to [14.9%] in Q1 2019. The Southern Region has increased its share (from 29.4% in 2017 to 41.1% in Q1 2019.

Proportion of employees who are agency workers

Given the different sizes of each regional labour market it is important to see the extent to which agency workers as a proportion of all employees, varies across time and region. This is illustrated in Graph 3 below.

Nationally (depicted by the blue line), in Q4 2017 agency workers comprised 3% of all employees. This proportion declined to 2.6% at the start of 2019. Both the Northern and Western and Eastern and Midland regions had proportions below the national average.

The Northern and Western region, depicted by the black line, started the period with the highest proportion of employees as agency workers (4.1%), but this has since declined to 1.4% and was recorded at 2.4% in Q1 2019. The Eastern and Midland region trend (depicted by the orange line) is very similar to the national trend albeit at a lower level.

For most of the period, the proportion of employees who are agency workers is the highest in the Southern region (depicted by the green line). At the start of the period under review, Q4 2017, the rate in the Southern region is lower than the national figure – 2.8% and 3.0% respectively. However, from Q1 2018 through to the end of 2019 the proportion of employees that are agency workers is consistently higher in the Southern Region than the national average.

Conclusions

The Southern region comprises the Mid-West (Clare, Limerick & North Tipperary), the South-East (Carlow, Kilkenny, Waterford and Wexford) and the South-West (Cork and Kerry). In the absence of NUTS 3 regional data it is difficult to know whether there may be specific concentrations associated with a concentration in industry sectors that may be more prevalent in the Southern region.

The CSO data does provide other information on the profile of agency worker employment. For example, nationally 52% of agency workers are female. There is a sectoral concentration within the Agriculture, Forestry, Fishing, Industry and Construction sectors where a quarter of all agency employees are employed. There is also a high concentration of agency workers in the Human health and social work activities sector, see here for full release.

Discussions with the CSO indicate it is difficult to ascertain why there is a relatively high share in the Southern region. The CSO point out that the LFS is a survey, the margin of error of the estimates can be greater with smaller cell sizes. More trend data will be needed to see if it is a more established trend and a particularly stronger feature of employment in the Southern Region or if it becomes a stronger feature of employment when economic growth is not as strong.

However, the availability of these data does allow us to monitor trends and helps us build a picture of the range and types of employment, all of which is critical to formulating and improving employment policy.

 

 

Deirdre Frost

Information Society Statistics – The Regional Picture

The CSO has recently published statistics on household use of the internet, measuring various aspects of the information society. Given the significant importance of the National Broadband Plan, aimed at delivering better internet access for all, especially those in rural areas, it is useful to examine the regional dimension of the Information Society Statistics, see here for the link to the CSO publication.

Household Internet Connectivity

In 2019, 91% of households have an internet connection, an increase of two percentage points since 2018. The regions with the lowest percentage of households with internet access are the Border (84%), the Midlands (85%), the West (89%) and South East (89%).  Some regions, such as the Border, have reported a slight decline in the rate between 2018 and 2019. It is not clear why this is the case, discussions with the CSO suggest it could be due to sampling and the fact that different households are selected each year, see note 1 below.

Type of Broadband Connection

The type of broadband connection also varies by region. Fixed broadband connection is highest in the Dublin region at 92%, compared with the Border and Midland regions, at 71% and 69% respectively. Narrowband connection is most prevalent in the Midlands, see table below.

Frequency of Internet Usage

Across the State the internet is used ‘everyday or almost everyday’ by 79% of individuals. The percentage rises to 85% in the Dublin region and the lowest rates are found in the Border (68%), the South-East (73%) and the West (75%).

Examining infrequency of internet use, nationally 12% of individuals ‘didn’t use it in the last 3 months’ and this rate rises to 19% in the Border region and 16% in the South-West and Mid-East. The CSO notes that frequency of use is related to age and principal economic status so that the younger age categories and students access the internet most frequently while those who are older and retired access it least frequently. The Border and West regions also have a higher age profile, especially in rural areas and this contributes to the higher rates among those who ‘didn’t use it in the last 3 months’ in these regions.

Types of Internet Activities

The CSO asked what type of internet activities were carried out by individuals in 2019. The

most popular activities were ’Finding information on goods and services’ and ‘email’ (sending and receiving emails), both at 84%. The Border region (73% using email) and the Mid-East (76% finding information on goods and services), reported the lowest rates in these types of internet activity.

Examining the use of the internet for financial transactions, nationally 42% of persons bought or renewed existing insurance policies online, see table below. This drops to 27% in the Border region while Dublin has the highest level – 48%, followed by the West at 46%.

e-Government

Examining the extent of e-Government use, that is engaging with public authorities and public services via the internet, in 2019, half of internet users (50%) Obtained information from websites or apps. Regionally, the Border region recorded the lowest rate in obtaining information from websites or apps – just 29% in 2019.

Nationally, 60% reported Submitting completed forms online. It is interesting to note that submitting completed application forms is more prevalent across all regions than obtaining information. The South West, Dublin and the West all had in excess of 60% of individuals submitting completed application forms online which highlights the value of e-Government in engaging with people in this way. While submitting completed forms online is very prevalent, there are some regions such as the Midlands and Border regions where rates were below 50% such as the Midlands – 46% and Border – 47%.

Across all types of contact with public authorities and services as outlined in the Table below, there is some evidence of a decline in rates between 2018 and 2019. It is not clear what is the reason for this, it is possibly due to sampling and different households are selected each year. It could also reflect an actual decline on yearly rates but measuring whether this is a trend or not will only become evident over a longer time period.

Shared Economy

Nationally in 2019 one third of internet users arranged accommodation from another private individual via dedicated website or app (such as a room, apartment, house, holiday cottage, etc.), such as Airbnb, which was an increase of five percentage points on 2018. This again varies by region, but here the West region has the highest incidence with 42% using Airbnb or similar. This is followed by Dublin 37% and the Mid-West by 36%.

The regions with the lowest rates are the South-East (24%) and the Border (26%). All regions reported an increase year on year, apart from the Midlands and the South West which remained stable.

As Table 1.5 shows, the practice of accessing transport services from another private individual online is much less prevalent. Unsurprisingly the rates in Dublin are the highest given the rate of activity there.

Internet Purchases

Considering online purchases, Clothes or sports goods were the most popular online purchase in 2019, purchased by over half (51%) of internet users. Here the regions with the greatest rates of online purchasing is the South west (56%), Mid-East (53%) and Midland region (53%). The lowest rates are in the Border region (41%).

There are clear differences between age groups in the types of goods and services bought online. The largest difference was for Clothes or sports goods, with 68% of individuals aged 16 to 29 years purchasing these, compared with just 23% of those aged 60 to 74. This age difference will also likely impact on regional variations with some regions having and older age profile such as the Border and West.

ICT Skills and Online Learning

Respondents were asked about online learning activities for educational, professional or private purposes which they undertook in the previous three months. Nationally 13% did a course online in the previous quarter and the highest rates were in the West (18%) and the lowest rates were in the Border region – 8%.

There is a greater incidence of people who Used online learning material other than a complete online course, across the State over one fifth (21%) did so in the last three months. Again, there is much regional variation with the highest rates reported in the West (29%), followed by 27% in Dublin. The lowest rates were reported in the Border and the Mid-East (13%).

Nationally, 14% Communicated with instructors or students using educational websites or portals. Here the regional variation is less pronounced.  The Border region reports the same as nationally – 14% while Dublin has the highest rate at 18%.

Home Smart Technology

In 2019, one eighth (12%) of internet users stated that they use home smart technology i.e., they use the internet to interact with household equipment or appliances that are connected to the internet (such as control of heating, control of lights and other building/apartment maintenance systems; household appliances e.g. oven, washing machine, robot vacuum cleaner; security systems e.g. locks, alarms, security cameras).

Regionally there are differences with the highest rates reported in Dublin (19%), followed by the Mid-East, Mid-West and South-West – all 11%. The regions of Midlands and West report 10% of internet users using home smart technology, while the lowest rates reported were in the South-West (9%) and the Border (5%).

Conclusions.

The information Society is very much embedded in how we conduct our lives. As the CSO data shows, the range of uses of the internet is extensive; from shopping for a wide range of goods and services to learning and accessing education services. And this release does not include information on the use of the internet to work from home on a regular or occasional basis.

The overall picture is clear, the use of the internet is pervasive and is becoming more so. The regional picture is less clear. On many of the themes, the Border region lags the national average, along with the West and South-East. On other variables such as arranging accommodation from another private individual online, the West has the highest rates.

Policy implications include the need to rollout the National Broadband Plan as soon as possible so as to ensure households without high speed broadband are not impeded in their use of the internet through a poor-quality service.

Other policy implications include the need to ensure ongoing provisions on high quality ICT skills and training such as the programme operated by the Department of Communications. It is clear that take -up is slower among the older age groups and some of this is due to a need for training.

Finally, it is clear that not everybody accesses goods and services online. Government services in particular need to continue to be delivered on an off-line method for those who are not able to or do not wish to access services online.

 

 

Deirdre Frost

Low carbon transition for Western Region homes- what’s the base line?

One of the most important elements of the transition to a low carbon rural region will be emissions reduction from homes in the Western Region by improving energy efficiency and switching to renewable energy sources for heating in particular (as discussed in the last blog post on this topic the focus of current WDC work on the transition is on rural dwellers).  The government, in the Climate Action Plan 2019, has set very ambitious targets for improving energy efficiency (retrofitting 500,000 buildings to a much higher level of efficiency (BER B2 or cost optimal or carbon equivalent) and moving to more renewable heat sources (with a target to install 600,000 heat pumps  (of which 400,000 will be in existing buildings).  In order to understand how what needs to be done to meet these targets we need to know where we are starting from.  This post sets out, in detail, some of the baseline information on homes in the Western Region.  Knowing the current situation means that we can better understand what we need to do to make the transition possible and ways to make it happen.

Homes in the Western Region

To understand the challenge it is first useful to look at the number and types of homes in the seven county Western Region.  According to Census 2016 there were 303,081 ‘permanent housing units’, that is all permanent residents excluding caravans, mobile homes and other temporary structures, (these accounted for 987 residences in 2016).  While newer homes have been built since the Census in 2016, the numbers are relatively small and those homes are not the focus of the efficiency and energy upgrades envisaged in the Climate Action Plan, so the Census remains the key data source.  The Western Region, in 2016, accounted for 17.98% of the permanent homes in Ireland which is in line with the share of the population living in the region (17.4%).

Galway county had the largest number of homes (62,729) and when combined with Galway city (as it is in some data discussed below) it has significantly more homes (91,556) than other Western Region counties.  Leitrim, the smallest Western Region county, had 12,404 homes (see Figure 1 below).

 

Figure 1: Permanent homes by county in the Western Region, 2016

Source: CSO Census of Population, Profile 1: Housing in Ireland Table E1002

 

The types of homes in the Region are also important, given that different types have different levels of energy efficiency and can have different options for switching to more renewable energy sources. For example, terraced houses will have lower heat loss than detached houses while flats and apartments are more suited to a central or district heating systems than more dispersed housing.  Figure 2 shows the significance of different housing types in the region and state.

 

Figure 2: Type of permanent housing units in the Western Region, 2016

Source: CSO Census of Population, Profile 1: Housing in Ireland Table E1002

Clearly, with the exception of Galway city, detached houses are the most common housing type in the region (64% of all homes in the region compared to 37% of homes in the rest of the state).  As would be expected the more rural counties have an even higher proportion of detached homes (Leitrim 73%, Roscommon 74%).  Counties with a higher urban population (Clare 59%, Sligo 57%) have a smaller proportion of detached homes but all are still above the state average (42%.  As noted above this has implications for the types of changes we need to make in relation to efficiency and heat sources.

The age of homes in the region is also important to planning the transition.  Figure 3 shows when homes in the different counties were built.  Significant house building in all counties between 2001 and 2010 is very apparent, with more than 30% of homes in Galway County (32%), Leitrim (35%), Roscommon (31%) and Donegal (31%) built in that period, while all other Western Region counties also have a higher proportion of homes built in that period than the rest of the state (25%).  Homes built in the different periods have different requirements for energy efficiency upgrades, and will face different costs and challenges.  The oldest homes will often face the most significant challenges, though it should also be recognised that they are not necessarily the least efficient.  More than a quarter of homes in Leitrim (26%) were built before 1960 while only 17% of those in Donegal were. In Galway City only 10% of homes were built before 1960.

 

Figure 3: Age of homes in the Western Region, 2016

Source: CSO Census of Population, Profile 1: Housing in Ireland Table E1005

 

While there will be different requirements for transforming homes from different eras, given the more recent improvement in building standards it is generally assumed that homes built  after 2010 will require least upgrading and therefore the focus of the SEAI grants, for example for heat pump  installation, is on homes built before 2011.  Figure 4 shows the proportions of homes in the Western Region built before and after 2011 (excluding those not stated).  In most counties, and in the State, only 2% of homes were built from 2011 onward (the exceptions are Galway City (1%) and Galway County (3%).

Figure 4: Number of Homes built pre and post 2011 in the Western Region, 2016

Source: CSO Census of Population, Profile 1: Housing in Ireland Table E1005

 

Evidently there is a very significant amount of work ahead with almost 98% of homes likely to require energy efficiency upgrades and fuel switching to complete a move to a low carbon economy. There are of course some pre 2011 exceptions such as the small number of homes which were built to higher efficiency standards than required or which have completed the process already).

 

Efficiency of Homes: Building Energy ratings (BER)

A Building Energy Rating (BER) certificate indicates a building’s energy performance rates on a scale of A-G. A-rated homes are the most energy efficient and G-rated are the least energy efficient.  It is calculated through energy use for space and hot water heating, ventilation, and lighting.  Figure 5 shows the different energy ratings given to buildings covered in each county up to 2018.  In all counties more than 90% of homes achieve a B3 rating or less.  While this data is very useful, in most areas fewer than a third of homes (often considerably fewer) have had a BER assessment[1] and so it is not clear if the homes which have been assessed accurately reflect the housing stock.

Figure 5: Percentage of rated buildings in each BER class for Western Region counties, 2019

Source: CSO, 2019, Domestic Building Energy Rating Table EBA02

 

The Climate Action Plan focus is on improving homes to a BER rating of at least B2 (or cost optimal or carbon equivalent.  Currently in the Western Region Galway and Mayo perform best with 5% of homes with a BER rating achieving B2 while only 2% in Leitrim and Roscommon do so.

The SEAI has recently produced an interactive map of BER ratings and with detailed BER data mapped at small area level.  Figure 6 below is a snapshot the national map where green DEDs have a median rating of B and above (there are not many on the map), while yellow shows DEDs with A median C rating, orange  is D, Red is E, Dark red, F and purple G.  The map should be viewed with caution as many DEDs have fewer than 20% of their homes with a BER rating and so the data may be skewed.  It is, however, really useful for planning and can be viewed in full here.

 

Figure 6: Map of median BER ratings by ED

 

Source: SEAI https://www.seai.ie/technologies/seai-maps/ber-map/

 

Fuels used in home heating.

While much of the discussion above has related to improving energy efficiency in homes, the other element necessary for reducing the carbon foot print of our homes is the fuel used for heating.  We will need to decarbonise the fuels used, by switching to renewable energy which may be electrical (generated from wind, solar or, in future, ocean energy), or bioenergy (e.g. wood energy, biogas from anaerobic digestion or a liquid biofuel).

The highest priorities for change are buildings heated using the most carbon intensive fuels (oil, coal and peat) and homes in the Western Region are particularly reliant on these, being rural, with little access to the natural gas grid and often using very traditional forms of central heating.  Figure 7 below shows the percentage use of oil and solid fuels (excluding wood energy) used in homes in the Western Region (from Census 2016).  In the Western Region as a whole more than four fifths of homes use oil, coal or peat for central heating, compared with 44% of homes in the rest of the state.  In Donegal 9 out of 10 homes use these fuels, with Mayo and Roscommon almost as high (each 87%).  Galway city has the lowest use of these fuels in the region (57%) and even that is higher than in the rest of the state.  Clearly homes in Western Region counties need to be prioritised in the switch to low carbon heating.

Figure 7: Oil and solid fuel as a percentage of central heating fuels in Western Region counties

Source: CSO Census of Population, Profile 1: Housing in Ireland Table E1053

 

While much of the discussion on home heat (e.g. in the Climate Action Plan) has focussed on heat pump installation, it may be that homes heated using coal and peat might find a switch to other renewable solid biomass such as wood energy to be more appropriate, especially in older homes which will need very significant retrofitting and may have particular ventilation requirements.  The focus of heat pump installation may therefore be on homes heated using oil.  Figure 8 below shows the percentage of homes in Region which use oil for central heating.

 

Figure 8: Oil as a percentage of central heating fuels in Western Region counties

Source: CSO Census of Population, Profile 1: Housing in Ireland Table E1053

Almost 60% of homes in the Western Region use oil for central heating compared to 36% in the rest of the state.  Again Galway city is lowest (at 50%) with the highest oil use in Leitrim (65%) and Donegal (64%).  A fifth of homes in Galway city (21%) are using electricity for heating which reflects the higher number of flats and apartments there (21%).  Roscommon has relatively low oil use (55%) because of the very significant use of peat (27%) to fuel central heating.  Homes in Galway county also commonly use peat (23%).

 

Heat Pump ready?

While it is important to change the type of energy used to heat homes in the Region, as discussed above  energy efficiency and good insulation are the first steps which need to be taken with a ‘fabric first’ approach advocated by SEAI for home energy improvement.  This is particularly important when heat pumps are to be installed as the home must be well insulated in order for heat pumps to work properly.

SEAI have used Heat Loss Indicator (HLI) data from BER certifications (see more here) to assess how many homes built prior to 2010 are ready to have heat pumps installed.  A prerequisite for heat pump installation is a HLI of ≤ 2 W/K/m2 and the percentage of homes ready for heat pump installation in the Western Region is shown in Figure 9 below.  Interestingly, this is a similar percentage of homes[2] in the Western Region (11.7%) as in the Rest of the State (12.8%).  Sligo is the Western Region county with the highest proportion of heat pump ready homes (15.6%) followed by Galway (14.0%) and Leitrim (12.6%).  Roscommon (8.6%) and Mayo (9.3%) have the lowest number of homes ready for heat pumps.

Figure 9: Heat Pump ready homes (HLI ≤2) by Western Region county

Source: https://www.slideshare.net/SustainableEnergyAut/key-learnings-from-the-seai-heat-pump-programme and CSO Census of Population, Profile 1: Housing in Ireland Table E1002. Own calculations.

 

The HLI of ≤ 2 is the most stringent measure of heat pump readiness, but given the very significant target for heat pump installation in the Climate Action Plan (400,000 in existing homes by 2030) if it also useful to look at other homes which are close to this level of readiness.  SEAI have, therefore, also estimated the number of homes which are heat pump ready using a HLI of ≤2.3 with certain caveats (see this for the detail of these).

 

Using this measure there are a considerably higher proportion of heat pump ready homes (see Figure 10) in the Western Region (23.2%)[3] which is higher than the rest of the State (22.5%).  Again Sligo has the most heat pump ready homes (27.8%) with Galway (23.9%), Leitrim (24.1%) and Clare 23.9% all higher than the Region average.  The lowest proportion of homes ready for a heat pump is in Roscommon (18%) and Mayo (19.4%).

 

Figure 10: Heat Pump ready homes (HLI ≤2.3) by Western Region county

Source: https://www.slideshare.net/SustainableEnergyAut/key-learnings-from-the-seai-heat-pump-programme and CSO Census of Population, Profile 1: Housing in Ireland Table E1002. Own calculations.

 

Although only 23% of homes are currently heat pump ready in the Western Region this still amounts to 65,187 homes in total in the region (and 351,295 in total for the state).  Prioritising these homes would make a very significant start on meeting the target in the Climate Action Plan.

Conclusion

In this post I have given some of the baseline information necessary for planning the transformation of our Western Region homes to more energy efficient, low carbon dwellings.  Clearly the scale of the transformation required is enormous and some of the issues which need to be addressed and actions which might be put in place will be discussed in my next post.

 

Helen McHenry

 

[1] BERs are usually done because a home is to be sold and a BER cert is required for this.

[2] Heat pump ready homes by county is shown as a percentage of permanent homes built before 2011 from CSO Census of Population 2016.

[3] This figure includes all those homes with a HLI of ≤2.0

Aviation trends, Government Policy and Ireland’s airports

The Department of Transport, Tourism and Sport is preparing a new Regional Airports Programme 2020-2024 and has sought the views of stakeholders. The WDC has made a submission which is available for download here. The WDC views are set out in the context of aviation trends, Government policy and airport capacity across Ireland.

Aviation Trends & Implications

The latest CSO Aviation statistics, Quarter 4 and Year 2018, see here, highlight the trend of the increasing concentration of air passengers travelling through Dublin airport compared to other airports. For example, in 2014, Dublin accounted for 81.9% of all passengers (total = 26.5 million), compared to 85.6% in 2018 (Total = 36.6 million). This represents an increase of 9.6 million passengers in 4 years, a 44.2% increase, with Dublin Airport accounting for 95.2% of total passenger growth in that period. So along with a significant increase in total air passenger numbers, there is an ever-increasing share travelling through Dublin airport.

The WDC believes that without more active intervention, further concentration of air traffic is likely. An ever-increasing share of passenger traffic through Dublin Airport is not in the State’s best interest (from a safety and security perspective) as well as counterproductive in delivering on targets within Ireland 2040.

Globally, it is difficult for smaller airports to compete with larger airports. For example, 80% of airports in the world have fewer than a million passengers per annum and 94% of these airports are loss-making[1]. This is one of the reasons that the EU allows State aid under certain conditions to support smaller airports.

Government Policy: Project Ireland 2040

There needs to be consideration of how the airports of Shannon, IWAK and Donegal can be more effectively supported through policy changes and State aid to deliver on the targets of the NPF and effectively on the role in supporting the economic growth of their respective regions (planned under Ireland 2040). The overarching policy objectives of Project Ireland 2040 state;

We need to manage more balanced growth … because at the moment Dublin, and to a lesser extent the wider Eastern and Midland area, has witnessed an over concentration of population, homes and jobs. We cannot let this continue unchecked and so our aim is to see a roughly 50:50 distribution of growth between the Eastern and Midland region, and the Southern and Northern and Western regions, with 75% of the growth to be outside of Dublin and its suburbs[2].

Policy and funding alignment

Given the recent Government commitment to Project Ireland 2040, sectoral policies need to be updated in order to effectively support the overarching objectives of Ireland 2040. If not, then Ireland 2040 is likely to fail. The National Aviation Policy (NAP, 2015) predates the publication and consideration of Ireland 2040 but can be seen to unduly reinforce the dominance of the larger airports (Dublin in particular).  Now that Project Ireland 2040 is Government Policy, the NAP should be reviewed and updated in light of the overarching objectives of the NPF. In the absence of reassessment and updating it is difficult to see how development can move away from a ‘business as usual’ approach and how the NPF can achieve its targets. It is sectoral planning and policy that are the real drivers of spatial and regional development.

The WDC believes that changes are required to more effectively support the growth of the airports in the Western Region, namely, Donegal, Ireland West Airport Knock (IWAK) and Shannon, to enable them to deliver on NAP and the regional targets contained in the more recently published Project Ireland 2040.

Airport Catchments

As the maps below show IWAK serves a very large catchment relative to some of the other airports. The planned road improvements for the North West will help support greater traffic through Ireland West Airport, which in turn will allow the airport better serve the catchment to its north including Sligo – a designated regional centre under Project Ireland 2040. The planned road improvements must be prioritised.

Maps 1 & 2: 30-min and 60-min catchment areas for Ireland’s airports

Source: Spending Review 2019, A Review of the Regional Airports Programme, DTTaS, IGEES

As the Department’s consultation document notes, though passenger numbers at all four regional airports are less than 1 million annually, just one airport – IWAK – has more than 400,000. IWAK has had annual passenger numbers in excess of 700,000 for the last three years and is forecast to have passenger numbers exceeding 800,000 in 2019. This is because Ireland West Airport Knock essentially serves the same purpose for its region (the North West) as the State airports perform in the Mid-West, South-West and East respectively, illustrated by the maps above. This needs to be recognised in an updated NAP.

Donegal serves a large catchment within a 60-minute radius and given the geography of Donegal, the relatively poor surface accessibility and the likely impacts of Brexit, it is important that support for Donegal continues.

Shannon Airport is the second largest airport in Ireland (in terms of capacity of the airport campus) and is a critical element in the transport infrastructure of the mid-west region, serving the significant industrial cluster of Shannon and the wider catchment as illustrated in the maps. It is therefore important that it operates optimally to help deliver the objectives of Project Ireland 2040, to enable the cities of Limerick and Galway on the Western seaboard, to each grow by at least 50% to 2040 and to enhance their significant potential to also become cities of scale[3].

The WDC considers that with Dublin Airport now operating at or near capacity, and capacity available at other airports such as IWAK and Shannon, cost-efficient and accessible alternatives to Dublin should be utilised and promoted. Shannon, IWAK and Donegal are important airports serving the Mid-west, West and North west of the country and policy and funding needs to effectively support them.

Industry view

 Exporters are also concerned with the ever-increasing concentration of traffic through Dublin Airport For example, the Irish Exporters Association (IEA) advocate for support for better air connectivity from the West of Ireland such as direct access to a European hub airport.  The IEA submission[4] to the Draft National Planning Framework noted that of those IEA members surveyed many said that they would use a different Irish airport as their primary route to move goods from Ireland if:

  • There were more frequent flights from another airport – 36%
  • Road networks between primary distribution centre and another airport were improved – 23%
  • Another airport was upgraded – 14%

These views are likely to be attenuated with Brexit.

In our submission, along with an updating of National Aviation Policy to align policy with Project Ireland 2040, the WDC propose some amendments to the existing operation of the Regional Airport Programme, see here for more detail.

 

Deirdre Frost

[1] ACI Report https://aci.aero/news/2019/03/28/aci-economics-report-affirms-the-importance-of-non-aeronautical-revenues-for-airports-financial-sustainability/

[2] Project Ireland 2040, NPF, 2018, p.11

[3] https://www.gov.ie/pdf/?file=https://assets.gov.ie/166/310818095340-Project-Ireland-2040-NPF.pdf#page=1 p.22.

[4] IEA Submission https://irishexporters.ie/wp-content/uploads/2019/03/IEA-Submission_Draft-of-the-National-Planning-Framework.-Nov-17.pdf

Transport, Aviation, Ten-T and Project Ireland 2040

Submission to Review of TEN-T

The Department of Transport has recently published its submission to the European Commission on proposed revisions of the TEN-T network see here.

The Department advocate for the inclusion of the Atlantic seaboard region of Ireland on the TEN-T Core Network, which the WDC welcomes. In his submission, Minister Ross provides the national policy context, in particular noting the overarching objectives of Project Ireland 2040.

We need to manage more balanced growth … because at the moment Dublin, and to a lesser extent the wider Eastern and Midland area, has witnessed an over concentration of population, homes and jobs. We cannot let this continue unchecked and so our aim is to see a roughly 50:50 distribution of growth between the Eastern and Midland region, and the Southern and Northern and Western regions, with 75% of the growth to be outside of Dublin and its suburbs[1].

One of the key objectives of the NPF is to move away from ‘business as usual’ and to redirect growth to other areas. In making the case for inclusion of the Atlantic seaboard region of Ireland in the Ten-T Core Network, Minister Ross also notes the adverse impacts of Brexit noting that,

Continued EU support for transport investment projects in Ireland will become even more important in the context of Brexit, after which our peripheral location on the western point of Europe will leave us even more isolated from other EU Member States. While Project Ireland 2040 aims to highlight the actions, including capital investment, required to strengthen the Northern and Western Regions and mitigate the adverse effects of the UKs exit from the EU which are expected to impact disproportionately on this area, its inclusion on the Ten-T Core Network would result in further Irish projects being eligible to apply for Connecting Europe Facility (CEF) funding, thereby contributing to the balanced development of our regions….

Policy and funding alignment

While the WDC welcomes the views expressed by the Department of Transport in relation to inclusion of the Atlantic seaboard region in the Ten-T Core network, in reality, for funding to follow from Europe, the Department of Transport needs to prioritise funding for Atlantic Economic Corridor Transport projects. So, for example the Capital Investment Plan allied to the NPF identifies transport projects for investment in the AEC region but many of these are not planned to occur until towards the end of the 10-year period, unlike other projects which are prioritised in the next few years.

The WDC have argued following publication of the NPF 2040, that if sectoral policies are not aligned to support the objectives of Ireland 2040 then Ireland 2040 is likely to fail. The National Aviation Policy (2015) predates the publication and consideration of Ireland 2040. The National Aviation Policy can be seen to unduly reinforce the dominance of the larger airports (Dublin in particular).  Now that the NPF is Government Policy, the National Aviation Policy should be reviewed and reassessed in light of the overarching objectives of the NPF and the need to ensure sectoral alignment. In the absence of such reviews it is difficult to see how development can move away from a ‘business as usual’ approach and how the NPF can achieve its targets. It is sectoral planning and policy that is the real driver of spatial and regional development.

 Aviation trends

As the WDC pointed out in its Submission on Future Airports Capacity Needs at Ireland’s State Airports see here, the West and North West region in particular has relatively poor accessibility by air, which is the preferred transport mode for international access.

The CSO Aviation statistics, Quarter 4 and year 2018, see here, highlight the trend of the increasing concentration of air passengers travelling through Dublin airport compared to other airports. For example, in 2014, Dublin accounted for 81.9% of all passengers (Total = 26.5 million), compared to 85.6% in 2018 (Total = 36.6 million). This represents an increase of 9.6 million passengers in 4 years, a 44.2% increase. So along with a significant increase in total air passenger numbers, there is an ever-increasing share travelling through Dublin airport.

This ever-increasing concentration is of concern to those supporting exporters. For example, the

IEA submission to the Draft National Planning Framework noted that of those IEA members surveyed who use airports to export, 81% use Dublin airport predominantly as their primary route to ship goods out of Ireland. 15% said that this was not the closest airport geographically. Members surveyed said that they would use a different Irish airport as their primary route to ship goods from Ireland if:

  • There were more frequent flights from another airport – 36%
  • Road networks between primary distribution centre and another airport were improved – 23%
  • Another airport was upgraded – 14%

The implementation of hub connectivity from the west of Ireland directly into Heathrow or another European hub airport (example Schiphol or Frankfurt) would significantly enhance business connectivity and attractiveness to locate in the west of Ireland[2].

The WDC considers that with Dublin Airport, operating at or near capacity, cost-efficient and accessible alternatives to Dublin are required. Shannon and Ireland West Airport Knock are important transport centres enabling the international success of businesses in Ireland’s West and North West.

The WDC believes that there needs to be consideration of how the other State airports, in particular Shannon (given the remit of the WDC) can be more effectively supported through policy changes to deliver on the regional growth targets of the NPF.

 Role of ‘Regional Airports’

Similarly, the WDC believe that the role of regional airports has to be reviewed in light of the NPF and its regional population and employment targets. The Department of Transport is currently conducting a consultation on the Preparation of new Regional Airports Programme 2020 to 2024.

The Regional Airports Programme provides for funding to regional airports to help them deliver on their goal as outlined in the National Aviation Policy. Recognising the relative difficulty which smaller airports have in both meeting operating costs and attracting and retaining air services, the Department provides support under different funding mechanisms. These funding schemes are governed by EU guidelines on State aid some of which apply to airports handling up to 3 million passengers per year.

As the consultation document highlights, all regional airports are not equal! While passenger numbers at all four regional airports are less than 1 million annually, three of four have less than 400,000. The exception is Ireland West Airport Knock which has had annual passenger numbers in excess of 700,000 for the last three years. This is because Ireland West Airport Knock essentially serves the same purpose for its region (the North West) as the State airports perform in the Mid-West, South-West and East respectively. National aviation policy needs to fully recognise the international transport function Ireland West Airport Knock provides, ensuring direct international air services to a region much of which is not in the catchment of the other international airports, Dublin, Cork and Shannon.

The WDC believes that the road improvements planned for the North West will help support greater traffic through Ireland West Airport, which in turn will allow Ireland West Airport Knock perform a key role in supporting the Government’s wider/broader policy objectives of delivering the population and employment targets for the Northern & Western Region under Project Ireland 2040. The road improvements must be prioritised.

Similarly, Shannon Airport with passenger numbers under 3 million (and therefore eligible for capital support without prior EU State approval) can help deliver the objectives of Project Ireland 2040, to enable the cities of Limerick and Galway on the Western seaboard, to each grow by at least 50% to 2040 and to enhance their significant potential to also become cities of scale[3].

All sectoral policy areas, in this case – EU TEN-T, National Aviation Policy and the Regional Airports Programme – highlight the importance of an overarching policy framework, to which all other policies should be aligned in so far as possible. Without alignment, delivery on the overarching policy objective of Project Ireland 2040, is unlikely.

 

Deirdre Frost

 

[1] Project Ireland 2040, NPF, 2018, p.11

[2] http://npf.ie/wp-content/uploads/0725-Irish-Exporters-Association.compressed.pdf

[3] https://www.gov.ie/pdf/?file=https://assets.gov.ie/166/310818095340-Project-Ireland-2040-NPF.pdf#page=1 p.22.

Regional Sectoral Profiles: The Complete Collection

A year ago we began publishing a series of ‘Regional Sectoral Profiles’ of economic sectors in the Western Region.  Now, 12 months and 12 reports later, the series is complete!  As publication has been spread over a year, I thought it would be useful to provide a synopsis and links to the full series.

So it all began in October 2018 with …

Wholesale & Retail (Oct 2018)

42,510 people were employed in the Wholesale & Retail sector in the Western Region in 2016 making it the region’s second largest employer.  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) meaning it is characterised by more, but smaller, businesses. Download WDC Insights-Wholesale & Retail in Western Region-Oct 2018 and Wholesale & Retail in the Western Region-Regional Sectoral Analysis-Oct 2018

Health & Care (Nov 2018)

42,027 people were employed in the Health & Care sector in the Western Region in 2016. At 15.5% of all employment, Sligo has the highest share working in this sector in the country, while Leitrim (13.5%) has the 2nd highest share nationally with Galway City and Galway County (both 13%) jointly 4th.  This sector is a hugely important and growing employer in the region.  Download WDC Insights-The Health & Care Sector in the Western Region-Nov 2018 and Health & Care Sector in the Western Region-Regional Sectoral Analysis-Nov 2018 

Education (Jan 2019)

32,349 people were employed in the Education sector in the Western Region in 2016.  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 (Co Galway) has the highest share of residents working in Education across Ireland’s 200 towns and cities. Within the sector, Pre-Primary education had the strongest recent jobs growth.  Download WDC Insights-Education Sector in the Western Region-Jan 2019 and Education Sector in the Western Region-Regional Sectoral Profile-Jan 2019-rev 12.03.19

Industry (Feb 2019)

With 45,754 working in Industry in 2016, it is the region’s largest employment sector.  It is considerably more important as an employer in the region than nationally (13.7% v 11.4%).  Among western counties, Industry is most important in Galway County, Clare and Galway City, while Ballyhaunis (Co Mayo) has the highest share of jobs in Industry among Ireland’s 200 towns and cities, where it accounts for 41.9% of total jobs.

Medical Devices is the largest activity accounting for 28% of all Industry employment in the region. The region’s industrial sector relies more on foreign owned companies than nationally (55.1% of assisted Industry jobs are in foreign owned companies v 45.3%).  Download WDC Insights-Industry Employment in Western Region-Feb 2019; WDC Insights-Industry Employment in Western Counties-Feb 2019 and Industry in the Western Region-Regional Sectoral Profile-Feb 2019-11.04.19

Accommodation & Food Service (Mar 2019)

23,038 people worked in Accommodation & Food Service in the Western Region in 2016.  Among western counties, it is most important in Galway City, Donegal and Mayo which are among the top 5 in Ireland in terms of the share of their workforce engaged in hospitality.  At 27.6% of total employment, Clifden has the highest share working in the sector in Ireland with Bundoran, Westport, Donegal town and Carrick-on-Shannon also among the top 10 towns.  The region is home to 23.7% of all Accommodation & Food Service enterprises in the state and it’s the sector where the region accounts for its highest share of national enterprises.  Download WDC Insights-Accommodation & Food Service Sector in the Western Region-Mar 2019 and Accommodation & Food Service Sector in the Western Region-Regional Sectoral Profile-Mar 2019

Agriculture, Forestry & Fishing (Apr 2019)

22,733 people were employed in Agriculture, Forestry & Fishing in the Western Region in 2016.  This only includes people whose main economic activity is working in the sector and does not include part-time farmers.  Of everyone working in the sector in Ireland, 1 in 4 of them live in the Western Region making Agriculture, Forestry & Fishing the sector where the Western Region accounts for its highest share of total national employment. Download WDC Insights-Agriculture, Forestry & Fishing Employment in the Western Region-April 2019 and Agriculture, Forestry & Fishing in the Western Region-Regional Sectoral Profile-Apr 2019

Administrative, Entertainment & Other Services (May 2019)

21,789 people worked in Administrative, Entertainment & Other Services in the Western Region in 2016. This sector provides ‘outsourced’ services to businesses, as well as personal and recreation services to individuals.  Bundoran has the highest share working in the sector of all Irish towns.  This sector is characterised by high self-employment, both compared with elsewhere (27.6% in region v 21.5% in state) and with other sectors. The number of self-employed grew by 19.4% (2011-2016) in the region, the highest growth of all sectors. Download WDC Insights: Administrative, Entertainment & Other Services in the Western Region and Administrative, Entertainment & Other Services in the Western Region: Regional Sectoral Profile

Financial & ICT Services (Jun 2019)

17,884 people worked in Financial & ICT Services in the Western Region in 2016. Financial & ICT Services plays a significantly smaller role in the region’s labour market than nationally (5.4% v 9%).  In the region the sector is most important in Galway City, Donegal and Clare.  At 14.3% of total jobs Letterkenny has by far the highest share of residents working in the sector in the region and is 11th highest in Ireland.  Download WDC Insights-Financial & ICT Services in Western Region-June 2019 and Financial & ICT Services in the Western Region-Regional Sectoral Profile-June 2019

Public Administration & Defence (Jul 2019)

18,858 people worked in Public Administration & Defence in the Western Region in 2016.  At 8.4% of total employment, Roscommon has the highest share working in the sector in Ireland with Leitrim and Sligo 2nd and 4th highest respectively.  North Connacht and the North West have high reliance on the public sector to sustain employment.  Lifford (Co Donegal), Strandhill (Co Sligo) and Roscommon town have the 2nd, 3rd and 4th highest shares working in the sector of Irish towns.  Download WDC Insights-Public Administration & Defence in Western Region-July 2019 and Public Admin & Defence Sector in the Western Region-Regional Sectoral Profile-July 2019

Professional Services (Jul 2019)

14,499 people worked in Professional Services in the Western Region in 2016.  It accounted for 4.3% of total employment in the region, far lower that its 6.1% share nationally.  Galway City is where it is most important in the region but it is still well below the state average.  This sector has among the highest rates of self-employment across all economic sectors and is considerably higher in the region than nationally (30.3% v 25.7%).  Download WDC Insights-Professional Services in Western Region-July 2019 and Professional Services in the Western Region-Regional Sectoral Profile-July 2019

Construction (Aug 2019)

18,166 people worked in Construction in the Western Region in 2016. In 2006 Construction accounted for 12.6% of all jobs in the region, by 2016 it was down to 5.4%.  Ballaghaderreen (Co Roscommon) has the highest share of residents working in Construction in the region and 2nd highest nationally.  Despite significant decline during the recession and slower recovery than elsewhere, Construction continues to employ a greater share of the workforce in the Western Region and particularly in more rural counties and towns.  Download WDC Insights-The Construction Sector in the Western Region-Aug 2019 and Construction in the Western Region-Regional Sectoral Profile-Aug 2019

And finally …

Transportation & Storage (Sep 2019)

10,758 people worked in Transport & Storage in the Western Region in 2016.  Clare has by far the highest share working in the sector in the region at 5.2% of employment and is 4th highest nationally due to aviation activity around Shannon. Shannon town (10.8%) has the 4th highest share working in the sector in Ireland with Newmarket-on-Fergus also in the top 10 towns.  There was a 6.3% fall in the number of Transport & Storage enterprises in the region between 2012 and 2017 mainly due to a sharp decline in taxi numbers.  Download WDC Insights-Transportation & Storage Sector in the Western Region-Sept 2019 and Transportation & Storage Sector in the Western Region-Regional Sectoral Profile-Sept 2019

So that’s the complete series of Regional Sectoral Profiles. In some ways it’s fitting that the series is now complete as this will be my final WDC Insights Policy Blog post.

After 16 great years with the WDC I am moving on to take up a new challenge.  I want to thank all my colleagues, past and present, and particularly my Policy Analysis team mates Deirdre Frost and Helen McHenry for all their help, support, encouragement and heated debated! over the years.

Wishing you all the best

Pauline White

Transportation & Storage Sector in the Western Region

The Western Development Commission (WDC) has just published the last in its ‘Regional Sectoral Profiles’ series which analysed the most recent employment and enterprise data for the Western Region on specific economic sectors and identified key policy issues.[1]

The final report examines the Transportation & Storage sector.  This includes activities such as taxis, bus companies, airlines and airports, haulage firms, couriers and services for the transportation sector.  Although it is among the smallest direct employers in the region, it’s significance to the regional economy and society is considerably greater, given its vital role in facilitating business activity, as well as providing services to individuals and communities.  Two publications are available:

Employment in Transport & Storage

According to Census 2016, 10,758 people worked in Transport & Storage in the Western Region.  Transport & Storage plays a smaller role in the region’s labour market than nationally (Fig. 1), accounting for 3.2% of total employment in the region compared with 4.0%. One of the reasons is the high concentration of this sector in Dublin due to the presence of Dublin Airport, Dublin Port, Dublin Bus and the headquarters of airlines and national transport companies

Among western counties, Clare has by far the highest share working in Transport & Storage (5.2%).  This is clearly due to the presence of Shannon Airport and Clare has the fourth highest share of its employment in this sector in Ireland.[2]  Roscommon has the next highest share in the Western Region, likely due to its very central location and the activities of logistics operations. At just 2.2% of total employment, Galway City has the lowest share working in the sector in the region and also in the state.

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

There was 4.5% jobs growth in the sector in the region between 2011 and 2016, higher than the 4.0% growth nationally.  Jobs growth in Transport & Storage was driven by a number of factors including increased demand from commercial clients as business activity recovered and evolving processes demanded more complex logistics and increased consumer and tourism spending. Growth in this sector was lower than overall jobs growth in the region (7.5%) however.

Transport & Storage sub-sectors

‘Postal, Courier, Warehousing & Cargo’ is the largest sub-sector in the Western Region (27% of total employment in Transport & Storage), and accounts for a higher share than nationally (23.8%).  The next largest is ‘Road Freight’ which is also more important in the region (21.2% v 18.4%). This illustrates the importance of the logistics sector in the region, which may not be surprising given its distance from the main international entry and exit points of Dublin Airport and Dublin Port.

In Clare, ‘Other Transport & Storage & Services’, which would include aviation services around Shannon, is the largest sub-sector while for Galway City ‘Taxi operation’ is largest with taxis being far more common in the city than elsewhere.  In Donegal ‘Road Freight’ is the biggest sub-sector and given the potential impact of Brexit on haulage, this is an issue of concern.  For all other western counties ‘Postal, Courier, Warehousing & Cargo’ is largest.

In the region, the strongest jobs growth (2011-2016) was in ‘Road Freight’ with employment increasing by 20% in the region, higher than the 15.9% growth nationally.  Only one sub-sector saw a decline with a 29.2% fall in the number working in ‘Taxi operation’ in the region.  Following growth in taxi numbers with de-regulation, over-supply of taxis in certain areas and increased alternative job opportunities with economic recovery, led to people leaving taxi driving.

Gender pattern and self-employment

Employment in this sector is highly male dominated with men accounting for 79.4% of the total Transport & Storage workforce in the Western Region.  Clare has the highest female share due to activity in aviation, while Donegal, where road freight is the largest activity, has the highest male share.

Of all those working in Transport & Storage, 20.1% are self-employed (employer or own account worker). This is higher than the region’s average rate of self-employment (18.3%).  Galway City (30.8%), Donegal (25.6%) and Sligo (23%) have the highest rates of self-employment and are also where ‘Taxi operation’ is most important.

There was an 18.3% decline in the number of self-employed working in Transport & Storage in the Western Region (2011-2016), the second largest decline of any economic sector.

Employment in western towns

When considering towns, commuting can be particularly important and it must be remembered that this data refers to residents of the towns, although some may travel to work elsewhere.

As may be expected from the previous sections, Shannon (10.8%) has by far the highest share working in the sector among towns in the Western Region (Fig. 2). Nationally, it has the fourth highest share working in the sector in Ireland with Newmarket-on-Fergus (9.5%) also in the top ten.[3] The towns with the next highest shares are also mainly in Clare.

Eight towns in the Western Region are among the bottom ten towns in Ireland in terms of the share working in Transport & Storage.  Six towns in the region have less than 2% of their employment in the sector.

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

Transport & Storage Enterprises

In 2017[4]  there were 3,291 Transport & Storage enterprises registered in the Western Region. This was 5.7% of total enterprises[5], well below the 7.6% share in the state.  The concentration of this sector around Dublin would be a factor in this pattern.

Galway[6], Sligo and Roscommon have the highest share of enterprises in the sector, though all well below the national average.  As noted above, ‘Taxi operation’ is most common in Galway and includes a large number of enterprises.  Differing from the pattern for employment however, Clare does not have a particularly high share of enterprises in the sector (5.5%) indicating it includes some large employers.

There was a 6.3% decrease in the number of Transport & Storage enterprises registered in the Western Region between 2012 and 2017 (Fig. 3).  This was a poorer performance than nationally where there was a 2.1% decline.  In both areas, the decline in the Transport & Storage sector contrasted with growth in overall enterprises.[7] Looking more closely at the data, there was the first sign of recovery in enterprise numbers between 2016 and 2017, so it could be expected that there has been some growth in the sector in more recent years.

All western counties had considerable falls in enterprise numbers in Transport & Storage, with Sligo and Mayo having the largest declines.  Roscommon and Clare, where the sector is most important as an employer, also had quite large falls in enterprise numbers.

Source: CSO, Business Demography 2017, Table BRA18.

Key Policy Issues

Smaller scale operations and high self-employment: Transport & Storage enterprises in the Western Region tend to be smaller in scale.  Self-employment in the sector declined as the economy recovered, largely due to a drop in the number of taxi drivers. Continuation of existing, and the development of new, initiatives and soft supports for sole traders and micro-enterprises is important to the future of the Transport & Storage sector in the region.

Responds to and facilitates economic growth: This sector depends on the level of activity in the domestic economy as this determines demand from commercial clients and private individuals.  As well as responding to economic growth, it also facilitates it e.g. by providing logistics services to business. Therefore, the presence of a strong Transport & Storage sector within the region, particularly given its peripheral location, is a key driver for regional economic growth.

Further development of the Western Region’s Airports: Shannon Airport plays a strategic national role in the transport sector.  In addition to transport services, there is considerable and growing activity in support services for the aviation industry.  At the same time, increasing international air access via Ireland West Airport Knock is important to improve accessibility for the West and North West.  The National Aviation Policy should be reviewed in order to further increase the role and capacity of these airports and reduce the dominance of Dublin Airport.

Brexit: The haulage and logistics sector will be among those most affected by Brexit.  The sector in Donegal potentially faces particular challenges.  It is important that the impact of Brexit be minimised and that haulage firms are supported in their efforts to adapt.  The Western Region’s peripheral location, and the role of the sector in facilitating wider economic activity, means this is of vital economic importance.

Opportunities in the logistics sector: Highly complex and integrated processes in manufacturing and retail increasingly rely on sophisticated logistics to minimise the time and cost of distribution and supply. In addition, the growth of online retail has greatly increased demand for postal and courier services. Given its central location, Roscommon has particular potential to further develop activity in this area.  Adaption to a low carbon economy is another area of opportunity for the freight sector.  

For more detailed analysis, download Transportation & Storage Sector in the Western Region: Regional Sectoral Profile and WDC Insights: Transportation & Storage Sector in the Western Region here

Pauline White

 

Photo The Shannon Group

[1] Previous Regional Sectoral Profiles are available here https://www.wdc.ie/publications/reports-and-papers/

[2] Fingal (8%), Meath (5.9%) and South Dublin (5.2%) have the highest shares, with Dublin Airport’s influence very clear.

[3] All other towns in the top ten are surrounding Dublin Airport.

[4] Data in this section is from CSO, Business Demography 2017

[5] Total enterprises includes all ‘business economy’ enterprises (NACE Rev 2 B to N(-642)) plus the sectors of Health & Social Work, Education, Arts, Entertainment & Recreation and Other Services.

[6] Business Demography data does not distinguish between Galway City and Galway County.

[7] As Business Demography data is not available for some sectors until 2015, changes over time are not based on ‘total enterprises’ but a sub-set of this called ‘business economy’ enterprises. This is sectors NACE Rev 2 B to N(-642) which is all economic sectors except Agriculture, Forestry & Fishing, Public Administration & Defence, Health & Social Work, Education, Arts, Entertainment & Recreation and Other Services.

New Infographic: Enterprise in the Western Region 2017

The WDC has analysed the latest CSO Business Demography data on enterprises in the Western Region. This data is for 2017 when there were 57,951 total enterprises[1] registered in the seven-county Western Region (location of an enterprise is based on its address as registered with Revenue[2]).  In total, just over a quarter of a million people were working for enterprises registered in the region.

Enterprise in the Western Region 2017

The infographic shows some of the key indicators for enterprise in the Western Region.

The recession led to a 4.3% decline in the number of enterprises[3] in the region, this was compared to marginal growth in enterprises in the state (0.1%) over this period. With economic recovery, enterprise numbers grew again, rising 6.5% in the region between 2012 and 2017. While strong, this growth did significantly lag that nationally (11%).

As growth accelerated considerably between 2016 and 2017, it is likely that enterprise numbers have continued to expand since 2017.

Of all enterprises registered in the Western Region 92.9% were micro-businesses employing fewer than 10 people. This was a slightly higher share than nationally where 92.1% of enterprises are micro.

As each micro-enterprise is small in scale however, despite them accounting for 92.9% of enterprises, only 35.8% of everyone who works for an enterprise, works for a micro-enterprise.  Of course, direct employment is just one of the economic and social impacts of micro-enterprises and they play a particularly vital role in smaller centres and more rural areas, as well as in particular sectors e.g. Construction, Professional Services.

By their nature, larger firms (employing 10 or more people) play a more significant employment role, accounting for 64.2% of everyone who works for an enterprise, despite only accounting for 7.1% of firms.

In terms of the number of enterprises, Construction is the largest sector in the Western Region accounting for 20.4% of all enterprises registered in the region.  Wholesale & Retail (15%) and Professional, Scientific & Technical activities (9.4%) are next largest.  All three sectors include many sole traders and micro-enterprises e.g. construction trades, solicitors, architects, small shops and they are also the three largest sectors nationally.

Considering the number of people working in enterprises however shows a different pattern.  Wholesale & Retail is the largest enterprise sector in employment terms (17.8% of all people working in enterprises in the Western Region) followed by Industry (manufacturing) (17.2%) and Accommodation & Food Service (13.4%). These three sectors include many larger businesses e.g. factories, hotels, large retail stores, so account for a greater share of employment than of enterprises.

County Data

Data for the same indicators that are included in the ‘Enterprise in the Western Region 2017’ infographic has also been published for each of the seven western counties in a ‘Key Statistics’ one-pager.  A few interesting findings for western counties:

  • Roscommon and neighbouring Leitrim jointly have the highest share of micro-enterprises in Ireland (94.7%).
  • While for most western counties Wholesale & Retail, Industry and Accommodation & Food Service are the three largest enterprise sectors for employment, for Galway and Roscommon, Health & Care is in the Top 3.
  • At 9.9%, Donegal saw the largest decline in enterprise numbers in the Western Region between 2008 and 2012 with Mayo (5.3%) having the next largest decline. Sligo was the only western county where enterprise numbers increased over this period (0.9%).
  • Clare had the strongest recovery in enterprise numbers between 2012 and 2017 at 10.4%, close to the national average (11%).

For anyone interested in more detailed analysis, a comprehensive ‘Profile of Enterprise in …’ document is also available for each county. Each 12-page Profile includes data on:

  • Enterprise Trends 2008-2017: Active Enterprises and Persons Engaged
  • Employees as a % of Persons Engaged 2008-2017
  • Enterprises, Persons Engaged and Employees by Enterprise Size 2017
  • Change in Enterprises and Persons Engaged by Enterprise Size 2008-2017
  • Active Enterprises by Sector in 2017 and Change 2015-2017
  • Persons Engaged by Sector in 2017 and Change 2015-2017
  • Employees as a % of Persons Engaged by Sector 2017

Download the ‘Profile of Enterprise in …’ CLARE, DONEGAL, GALWAY, LEITRIM, MAYO, ROSCOMMON and SLIGO

Conclusion

Clearly micro-enterprises play a very significant role in the Western Region’s enterprise base.  There is a higher share of owner-managers working in enterprises in the region which is important to keep in mind when designing and planning business supports. While enterprises in the region were hit very hard during the recession, there has been recovery, accelerating in recent years. There were more enterprises registered in the Western Region in 2017 than a decade earlier.

Enterprises form the backbone of the local and regional economy.  Supporting the establishment and growth of sustainable enterprises across the Western Region is a key priority for the WDC and we hope that this analysis of enterprise data will help to better inform both ourselves and other organisations, individuals and policy makers, about recent trends in the enterprise base  of western counties, including their vital role in job creation.

All documents are available from https://www.wdc.ie/publications/reports-and-papers/

Pauline White

Infographic designed by Resonate Design

 

[1] Data on total enterprises, total persons engaged and enterprises/persons engaged by Sector are based on a figure for ‘total enterprises’ which includes all economic sectors (NACE Rev2) except Agriculture, Forestry & Fishing and Public Administration & Defence.

[2] The geographical breakdown for enterprises is an approximation. The county breakdown is based on the address at which an enterprise is registered for Revenue purposes, rather than where the business actually operates from.  In particular, where an enterprise has local units in several counties (e.g. a supermarket chain), but one head office where all employment is registered, all its employees are counted against the county where the head office is located.

[3] Data on enterprises and persons engaged by enterprise size (micro-enterprises etc.) and data on changes over time are based on a figure for ‘business economy’ enterprises which includes all economic sectors (NACE Rev2) except Agriculture, Forestry & Fishing, Public Administration & Defence, Education, Health & Social Work, Arts/ Entertainment/ Recreation and Other Services.