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Regional Agency-Assisted Jobs 2017

In August the Department of Business, Enterprise & Innovation published the Annual Employment Survey (AES) for 2017.  This provides an analysis of employment in Industrial and Services companies under the remit of IDA Ireland, Enterprise Ireland and Údarás na Gaeltachta.  This type of employment is referred to as ‘agency-assisted’.

In 2017, total permanent, full-time employment (PFT) in agency-assisted companies in Ireland was 379,810.  This was an increase of 19,369 jobs (5.4%) on 2016, continuing the growth trend in evidence since 2011.  Part-time, temporary or contract employment in agency-assisted firms also increased by 1,796 jobs in 2017 and now stands at 48,221, the highest number recorded in the 10-year period.

Combining PFT and Temporary/Part-time jobs brings total agency-assisted employment in Ireland to 428,031 in 2017.  This was 19.5% of total employment in the country in that year (average employment of 2,194,150 across the year, based on CSO’s Labour Force Survey).

The AES data includes a detailed regional breakdown of agency-assisted employment by employment type and ownership in Appendix B.

Regional agency-assisted employment

We will begin by looking at the three larger regions of the Border, Midlands & West (BMW), South & East and Dublin.  All three initially experienced declines in assisted employment but have shown strong recovery since 2012 (Fig. 1). The South & East region has consistently been the largest, though in recent years as Dublin has grown more rapidly it has narrowed the gap somewhat.  Meanwhile the gap between the BMW region and the others has widened in recent years.

Fig. 1: Total agency-assisted employment in BMW, South & East and Dublin regions, 2008-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

To consider this in more detail, we’ll look at the BMW’s share of total agency-assisted employment in the State.  The BMW region’s share has followed a downward trend across all types of ownership (Fig. 2). For Irish-owned employment, its share fell from 27.1% in 2008 to 25.6% in 2017.  While for foreign-owned agency supported jobs, its share fell from 19.2% to 18.9% over the 10-year period though it was higher during 2011-2014.  The region has consistently accounted for a higher share of all Irish-owned employment than of foreign-owned.

Fig. 2: BMW region’s share of total national agency-assisted employment, 2008-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

At the more detailed regional level (Fig. 3) the share of total agency-assisted employment in each region changed between 2008 and 2017.  Dublin’s share of total assisted jobs grew steadily from 34.4% in 2008 up to 37.6% in 2017.  The second largest region is the South West and its share also grew from 14.8% to 16.3%.  While the South East was third largest in 2008, by 2017 the West had moved into third position, with the South East dropping to fifth.  Only three regions – Dublin, South West and West – had a higher share of total employment in 2017 than in 2008.

Fig. 3: Percentage of total national agency-assisted employment in each region, 2008, 2012 and 2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

 

While the share of total assisted employment located in several regions declined, all regions experienced growth in their actual number of agency-assisted jobs between 2008 and 2017 (Fig. 4). Clearly the South West (36.3%), Dublin (34.6%) and West (27%) (influenced by Cork, Dublin and Galway cities) had very strong growth over the 10-year period, with the South East (5.1%) and Mid-East (7%) performing least well.  This helps to explain their deteriorating relative positions.

Looking at the most recent performance (2016-2017), Dublin, the Mid-West and South East had the strongest growth, up 6.2% in the year. While most other regions had growth of around 5% the Mid-East actually saw a decline in agency-assisted employment in the year.

Fig. 4: Percentage change in total agency-assisted employment in each region, 2008-2017 and 2016-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

Regional employment by type

Data is provided on two types of employment – Permanent, full-time and Temporary, part-time or contract employment (referred to as ‘Other’).  The percentage of total employment that is ‘Other’ has generally increased over the 10-year period, though with considerable volatility.  Nationally 11.3% of total employment in 2017 is ‘Other’ compared with 9.1% in 2008.

At 13.4% the West region has the highest share of Temporary/Part-time/Contract employment in 2017 and the share has been increasing since 2015.  In Dublin however, which has the next highest share (12% in 2017), it has been declining (Fig. 5). At 8.9% the Mid-East has the smallest share of ‘Other’ employment.

Fig. 5: Percentage of total agency-assisted employment that is temporary, part-time or contract employment in each region, 2008-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

Regional employment by ownership  

The balance between foreign and Irish-owned agency assisted employment differs substantially at regional level (Fig. 6). The three regions with the largest number of agency-assisted jobs, and also the strongest growth during 2008-2017 (South West, West and Dublin) have the highest shares of foreign-owned employment at over 57% in 2017.  The Mid-West is the other region where the majority of assisted jobs are foreign-owned.

The Midlands and Border regions have the lowest shares of foreign-owned employment and therefore the largest shares of Irish-owned employment. Two-thirds of assisted jobs are in Irish companies.

Fig. 6: Percentage of total agency-assisted employment in foreign-owned and Irish-owned firms in each region, 2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

Fig. 7 shows that over the 10-year period, the South West, Dublin and West all had 40+% growth in agency-assisted foreign-owned jobs.  At 21.5% the Border also had strong growth in such jobs, though from a lower base.  In contrast, the Mid-East and Midlands both experienced a fall in foreign-owned assisted employment.

It should be noted that some of the changes in job numbers by ownership may be due to a transfer of ownership e.g. an Irish company bought by a foreign company or a foreign company becoming an Irish company through a management buy-out etc.  When a company changes ownership, jobs in that company are re-classified as Irish or foreign and the changes back-dated to previous years.

Irish-owned assisted jobs grew across all regions during 2008-2017, most strongly in the Mid-East somewhat compensating for declining foreign-owned employment.  The South West, Dublin and Midlands also had around 20% growth in Irish-owned assisted jobs with the South East and Border regions performing worst.

Irish-owned assisted employment out-performed foreign-owned in three regions (Mid-East, Midlands and Mid-West). In the case of the West, growth in foreign-owned assisted jobs was over three times greater than growth in Irish-owned assisted jobs, in Dublin and the South West it was about double.

Fig. 7: Percentage change in total agency-assisted employment in foreign-owned and Irish-owned firms in each region, 2008-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

Over the past year (Fig. 8), all regions experienced growth in both foreign and Irish-owned assisted employment, except for foreign-owned jobs in the Mid-East. The South East (9.4%) and Dublin (7.2%) had strong growth in foreign-owned jobs with the Mid-East, Midlands and Border performing least well.  For Irish-owned jobs, the Mid-West, West and Midlands performed strongly.

In general there was less regional variation in the performance of Irish-owned assisted employment compared with foreign-owned.  Irish-owned firms out-performed foreign-owned in all regions except the South East, Dublin and South West.

Fig. 8: Percentage change in total agency-assisted employment in foreign-owned and Irish-owned firms in each region, 2016-2017. Source: DBEI, Annual Employment Survey 2017, Appendix B.

Conclusion

The strong growth trend evident in agency-assisted employment for the past number of years continued in 2017. All regions had a greater number of agency-assisted jobs in 2017 than they had in 2008.  There were considerable regional variations however, with the South West, Dublin and the West experiencing extremely strong jobs growth over the decade, substantially driven by foreign-owned companies, which led to their combined share of total assisted jobs increasing from 58.5% in 2008 to 63.5% in 2017. These three regions also have the highest shares of foreign-owned employment and two of them (West, Dublin) have the highest shares of Temporary/Part-time employment.

While all other regions have also seen growth in the numbers working in agency-assisted firms, this has been at a substantially lower level. The Mid-East and Midlands actually have fewer jobs in foreign-owned assisted firms in 2017 than they had in 2008, though growth in Irish-owned assisted jobs compensated for this, leading to overall growth.  The Border and Midlands show the highest shares of Irish-owned assisted employment and in the past year (2016-2017) Irish-owned firms out-performed foreign-owned in these two regions, as well as in the West, Mid-West and Mid-East.

While the foreign-owned sector has been a strong driver of assisted employment growth, especially in the Dublin, South West and West regions and in the initial stages of the recovery, the Irish-owned sector has responded strongly in more recent years and shows a more even geographical spread.

Pauline White

Job creation in 2015 – EI and IDA end-of-year statements

Both Enterprise Ireland (the state agency charged with supporting exporting indigenous enterprises) and the IDA (the state agency responsible for supporting Foreign Direct Investment) issued very upbeat end-of-year statements this week. So, how did the region’s fare?

Enterprise Ireland

In 2015 total employment in EI client companies was 192,223, of which 165,630 were full-time jobs. 2015 saw the highest level of new jobs created by EI supported companies in the agency’s history (about 17 years) with 21,118 new jobs created. Taking into account job losses over the year, the net increase was about half this at 10,169 net new jobs.

Of this net increase in EI client jobs, 64% occurred outside of Dublin. It is notable that the regional performance got considerably greater focus in this year’s end-of-year statement Press Release than has been the case for the past number of years. The evident dissatisfaction in many regional locations caused by a two-speed jobs recovery, which led to the preparation of the regional Action Plans for Jobs and several other regional EI initiatives last year, has led to greater emphasis on regional performance in this year’s end-of-year statement. As indeed has the fact that that performance has been quite strong.

While the overall regional picture may be quite strong, the relative performance across the various regions differs (Fig. 1). The increase in jobs in EI client companies in 2015, compared with 2014, varied from +36% in Dublin to just +2% in the North West. Indeed the North West, Mid-West and West – the three EI regions covering the Western Region – had the lowest increases in job numbers across the country at +2%, +3% and +5% respectively. Sticking with the two-speed jobs recovery metaphor, the Western Region appears to be running at the lowest speed of all, at least in the context of indigenous exporting companies.

Infographic from the Enterprise Ireland end-of-year statement 2015

Fig. 1: Infographic from the Enterprise Ireland end-of-year statement 2015 https://enterprise-ireland.com/en/News/PressReleases/2016-Press-Releases/End-of-Year-Statement-2015.PDF

A previous WDC Insights Blog post highlighted the particular issue of the North West’s poor performance in terms of all types of agency assisted employment (EI, IDA and Udarás). Between 2005 and 2014 the North West experienced the largest decline in agency assisted jobs of any region in Ireland. And now in 2015 it’s the region with the lowest increase in EI supported jobs. This points to a very real concern for the North West’s capacity to generate new employment in export focused businesses, even when Ireland is experiencing some of its strongest ever jobs growth in this type of business.

IDA

2015 saw the highest level of employment in IDA client companies in the organisation’s 67 year history reaching 187,056. A total of 18,983 new jobs were created by their clients during 2015, when job losses are taken into account, there was net job creation of 11,833, slightly higher than that recorded by EI clients.

Similar to EI, the IDA’s end-of-year statement gives more focus to regional performance than in some previous years. Overall, 53% of all jobs created by IDA clients in 2015 were based outside of Dublin, which is an improvement over the 49% share in 2014.

While 53% of new jobs were created outside of Dublin in 2015, this area accounts for 59% of total employment in IDA backed companies. The legacy of past investments in more regional locations continues to influence the overall pattern of FDI jobs, even as new investments tend to be attracted to more urban areas.

The IDA end-of-year statement doesn’t provide detail on the differences across the regions, though it does note that every region experienced an increase in employment in IDA backed companies. It will be very interesting to see the detailed regional breakdown of this performance to see if it shows a similar inter-regional pattern to the EI client companies, with the Western Region having the lowest growth. Although the strength of Galway in attracting FDI means the West region may show a stronger performance in foreign owned employment in 2015 than in Irish owned.

While overall, 2015 was very positive in terms of regional job creation by both EI and IDA client companies, the inter-regional differences in the results for EI companies would indicate that more needs to be done to increase the pace of the jobs recovery in the Western Region.

Pauline White

The Battle for Rural Ireland – RTE 1

RTE screened a documentary, The Battle for Rural Ireland, on 9th March 2015, to which Deirdre Frost contributed. Presented by Richard Curran, the programme highlights the challenges faced by rural communities and towns, both in the context of the recent recession and the outlook for further rural depopulation. Much of the projected population growth is to occur on the East coast.

You can watch the programme here (available until 30 March).

While urbanisation is not unique to Ireland, the programme shows the effects of population loss on rural areas, in terms of service provision and employment opportunities.

The Battle for Rural Ireland highlights some examples of innovative enterprise development and employment creation in rural areas but ultimately the need for stronger regional and rural policy is clear.

Deirdre Frost

New Regional FDI Targets

Yesterday’s announcement of IDA Ireland’s new 5-year strategy put considerable focus on the regional balance of future FDI investments.

The strategy includes a target to increase the number of investments in every region, outside of Dublin, by 30-40% over the lifetime years of the strategy. With Dublin maintaining a similar level to currently. For example for the West, which received 71 investments over the 2010-2014 period, the target is to achieve 92-99 investments over 2015-2019. For the Border region the target is 61-66 investments (it received 47 in the past five years). These targets do not just refer to new name investments, but include expansions by existing FDI companies and R&D investments.

Map of current IDA regional profile

Map of current IDA regional profile

The record in achieving regional FDI investment targets to date has not been particularly good and it is interesting to note the IDA states that it sees these regional FDI targets as ‘… collective targets for the stakeholders in each region to work together to achieve’. Together with considerable emphasis on the role of the upcoming Regional Enterprise Strategies (or Regional Action Plans) being prepared by DJEI, there seems to be more focus on the role of other actors in attracting FDI.

It has been highlighted elsewhere that Local Authorities, with their increased economic and enterprise development remit through the LEOs, could become more active in targeting smaller scale FDI opportunities, including through county diasporas.

In setting out how it plans to deliver on these targets, IDA Ireland refers to developing sectoral ecosystems in the regions by aligning IDA business sectors with regions and their strengths as well as working more closely with EI to maximise clusters and linkages with indigenous businesses. The €150m investment in property solutions in various locations, including Sligo, Castlebar and Galway in the Western Region, announced a few weeks ago, seems to be viewed as a key element in achieving the targets.

As we highlighted in our analysis of agency assisted employment, recent agency assisted jobs growth has been driven more by the foreign owned sector in the Western Region than in the rest of the state, largely because of the weaker performance of the region’s Irish owned assisted sector. Efforts to achieve the regional FDI targets hold particular importance for the Western Region.

Pauline White

Regional balance in FDI

The regional balance of FDI received considerable media attention over the past few days. IDA Ireland’s statement on its 2014 performance (issued on Tuesday, 6 January) noted that 37% of investments had taken place outside of Dublin and Cork. This was an improvement from 2013’s 30% figure but still considerably behind the 50% target set in their Horizon 2020 strategy.

The IDA’s new five-year strategy, due to be published soon, is likely to give more focus to the issue of the regional spread of FDI investment. For urban centres other than the largest cities, the target needs to be smaller scale FDI appropriate for such locations. Smaller urban centres have access to large labour catchments beyond their town boundaries, as well as the potential to attract returning emigrants, and have much improved transport and broadband infrastructure capacity than previously.

The WDC will publish a report later this month analysing trends in agency assisted employment, both foreign owned and Irish owned, in the Western Region over the 2004-2013 period. It will analyse the type of employment, ownership patterns and sectoral performance within the region. County level data will also be examined and the WDC will publish individual county profiles for each of the seven western counties.

We hope this analysis will provide useful insights for enterprise, job creation and regional development policy for the Western Region.