Friday, August 9, 2013

9/8/2013: Irish ICT Services: Geniuses & Jobs Creators?..

The latest annual services inquiry for Ireland, published yesterday by the CSO and available here: offers a fascinating read into the workings in the bizarrely-distorted world of MNCs-led exporting services in the country.

Here is one interesting set of facts, not shown by the CSO.

As chart above shows, in 2008-2011, Gross Value Added in ICT Services sector in Ireland (the sector heavily dominated by the likes of Google and other tax transfer-driven MNCs) has boomed, rising 30%. This growth, as the Government et al love reminding us, is allegedly translating into jobs, jobs and more jobs.

Alas, the facts speak for themselves:

  • Over 2008-2011 wages and salaries paid out in the sector rose just 8.2% or a tiny fraction of growth in value added.
  • GVA per person engaged in the sector rose 29.9% an
  • d GVA per full time employee rose 31.1% - both by far the fastest rates of growth of any sector in the economy.
  • The numbers engaged in the sector dropped (not rose) in 2008-2011 by 5.0% while numbers of full-time employees in the sector dropped 5.9%.
Can someone explain these miracles to me, please? By anything other than ongoing substitution of activity away from actual production of services toward more tax optimisation?.. Anyone?..

While at it, here is another illustrative chart to consider:

The above shows that Irish ICT Services workers constitute a truly miraculous breed of employees - so vastly more productive than any other type of human being in Ireland. Next time, walking down the Barrow Street, do marvel at all the geniuses walking about.
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