Showing posts with label live register. Show all posts
Showing posts with label live register. Show all posts

Wednesday, July 30, 2014

30/7/2014: Some Simple Maths Around Live Register Numbers

There are some positive news on Live Register front today, which you can read about here: http://www.cso.ie/en/releasesandpublications/er/lr/liveregisterjuly2014/#.U9jKTIBdWEI

My friend, Marc Coleman noted in his commentary that:


Progress of sorts, I agree. However, several caveats apply:

  1. The above figures quoted by Marc omit outflows from LR due to expiration of benefits (e.g. two-earners household where one earner becomes unemployed, draws unemployment supports, but then runs out of benefits due to high income of the other earner, etc);
  2. The above reductions also reflect outflows of working age population out of Ireland;
  3. The above reductions reflect exits from LR due to entry into Activation Programmes (e.g. JobBridge) and general tightening of LR access (e.g. people made self-employed before they lost jobs etc).
Let's take a look at the numbers we do know:


  • July 2011: Live Reg total = 470,284;  Unem. rate = 14.3% (estimated at the time, not 14.5% - adjusted later); and State Training Programmes Participants = 54,287 (June - these numbers are reported with a lag of one month, so to make them comparable to currently available data, I took June numbers for 2011).
  • July 2014: Live Reg total = 404,515; Unem. rate = 11.5%; and STPs = 65,709 (June).
  • So STPs difference = 11,422
  • Net emigration 2011-2013 (25-64 years old only, so I exclude 15-24 year olds - the largest category - this gives me some comfort on relating these emigrants to unemployment or underemployment) = 28,900

And we have:

  • Net emigration 2011-2013 and net change in STPs = 40,322
  • Add 2013-2014 emigration at 1/2 rate of 2012-2013 rate for 25-64 year olds = 6,900
  • Live Reg total July 2011 relative to July 2014 change: -65,769
  • Net emigration and STPs change 2011-2013 (estimated): - 47,222
  • Not in the above: exits from LR due to expiration of benefits.

So even without exits from LR, potential improvement in LR for June-July 2014 compared to June-July 2011 is at maximum 18,547, over 3 years or roughly 6,180 per annum.

Reminder, Live Register supported numbers are at 404,515 (LR) +65,709 (STPs) = 470,224. Do the maths as to whether this rate of improvement is really significant enough…

My view is that it is great to see reductions in LR and (not in the current release) there are some good news from the QNHS side that covers new employment. But we need much, much more rapid reductions in unemployment and increases in jobs creation (especially jobs creation at domestic economy levels, not just in MNCs- dominated sectors) to even start talking about any significant 'progress' here.

Good thing, Marc agrees, somewhat:


Wednesday, July 2, 2014

2/7/2014: Live Register by Nationality: June 2014 and Q2 2014


In the previous two posts (linked here) I covered top level data on Live Register for June 2014, and the Government "Score Card' comparatives between Q2 2014 and Q1 2011 when the current Coalition came to power. This post covers some details relating to foreign nationals on Live Register.

As of June 2014, there were

  • 398,813 people officially on the Live Register (in other words, excluding those who received Live Register supports but were enrolled into State Training Programmes). This marked a decline of 8.39% y/y
  • Of the above, 331,463 were Irish Nationals, representing 83.1% of total Live Register counts. Year on year, June 2014 numbers of Irish Nationals on LR is down 8.12% which is less than overall decline in the LR. A year ago, Irish Nationals represented 82.9% of total LR counts. So proportionally, Irish Nationals are now slightly more prevalent on LR than a year ago.
  • In June 2014, there were 67,350 non-Irish Nationals on the LR, representing 16.9% of the total LR counts. This represents a decline of 9.73% y/y. A year ago in June 2013, non-Irish Nationals represented 17.1% of the LR.
  • 15,034 UK nationals were on LR in Ireland in June 2014, representing a y/y decline of 10.0%, the second sharpest drop of all nationalities groups.
  • There were 3,751 EU15 (ex-Ireland & UK) nationals on the LR in June 2014, virtually unchanged (up on 3,750) on June 2013.
  • There were 36,772 Accession States (EU-12) nationals on the LR in June, representing a decline of 9.5% y/y. In June 2014, nationals of the Accession States accounted for 9.2% of the total LR counts, down from 9.3% in June 2013. In other words, proportionally, the numbers of Accession States nationals on LR have dropped more significantly than the decline in LR itself. This category posted the third steepest decline in LR numbers.
  • Non-EU nationals listed on LR amounted to 11,793 as of June 2014, a decline of 12.8% on June 2013. Proportionally, they accounted for just under 3% of the LR total counts in June 2014, down slightly on just over 3.1% in June 2013. This category posted the overall steepest rate of decline in LR numbers y/y.
Charts to illustrate:



A table below summarises changes in quarterly averages terms for Q2 2014:


This largely confirms the same observations made about June 2014 figures.

2/7/2014: Live Register: Changes on Q1 2011 & Government 'Score Card'


In the previous post I covered Live Register (top numbers) for June. Here, as promised, a sort of 'Score Card' for the Government tenure period - looking at the LR performance over the period from Q1 2011 through Q2 2014. This is summarised in the table below:


Note one simple exercise, taking the rate of improvement in figures over either 3 years and a quarter (entire tenure of the Government) or over the last 12 months (quarterly averages basis), we can look at the number of years we are still away from getting the LR and its underlying components to some sort of a 'norm' (selected as the average of 2007-2008 period). Two things are evident from this exercise:

  1. The task ahead is still awfully large and in no case are we out of the storm until around 2019-2020; and
  2. The task is being made easier in recent months as things have been improving more rapidly
This confirms my earlier analysis that the current crisis does not appear to be as easily solvable as the one of the 1980s (you can see some of this here).

It would not be fair to criticise this Government for the problem of unemployment. And it would be wrong not to recognise the fact that the numbers are improving and the rate of improvement has accelerated in the last 18 months. Still, noting the caveats to the improvements that I cited in the earlier post on this subject, and considering the effect of State Training Programmes on LR (the cornerstone of Government labour market policies endorsed fully by the Troika) there is more of this road yet to travel than what has been marked over the last 3 years.

2/7/2014: Live Register: June 2014


Live Register figures for June 2014 are out today, so here are some updates.

Seasonally un-adjusted LR stood at 398,813 in June 2014, which is down 8.39% y/y down 36,544. In May 2014 the LR was down 7.81% y/y so June marks an improvement in the rate of Live Register declines.

Factoring in participants in State Training Programmes, total number of individuals in receipt of Live Register supports in June 2014 was 473,700 which is 5.68% lower (28,521) than in June 2013. The rate of decline in total Live Register Recipients numbers moderated in June, since in May 2014 it fell 6.98% y/y.

Chart to illustrate:


June marked the slowest rate of LR declines (when factoring in State Training Programmes participants) since February 2014. However, since December 2013, the annual rates of decline in LR+STP numbers have run above 5%, every month, against average 2.57% declines in January-November 2013.

On the other hand, official LR declines hit record in June, dropping 8.39% y/y, the steepest rate of annual decline since the crisis began.

All of the above are positives, but subject to two caveats:

  1. We do not know how much of the LR reduction is down to emigration
  2. We do not know how much of it is down to exits from the labour force.
Data for labour force itself comes with a quarterly lag, so all we have to go by currently is Q1 2014 figure, when the labour force rose to 2,146,300 compared to 2,137,500 in Q1 2013 - an increase y/y of 8,800. Rising net labour force could have come from younger workers coming into the LF for the first time (some of them are not finding jobs, some are) and it can mean that older workers who exited the LF are coming back. We do not know net drivers for the 8,800 increase, so we cannot speculate as to what effect on LR this has had.

What we do, however, know (with 1 quarter lag, again) is that LR recipients as share of labour force is still trending above 2008-present average and although it is coming down, the proportion remains stuck above 20%. 

2008-present average for LR+STP as % of labour force is 21.1%, current June 2014 reading is at 22.1% (assuming labour force for Q1 2014), and March 2014 reading was 22.0% - very close to June (March figure is based on Q1 2014 data, so it is more likely to be correct). In June 2013 this proportion was 23.1% and in March 2013 it was 23.9%, which means we have some improvement. However, we are still far from 1998-2007 average of 9.5%.



So the good news is: LR is down. Better news is: much of the decrease is not due to State Training Programmes. Bad news: there is still a lot of road left to travel before we get anywhere near normal levels of LR and the progress is not rapid.

Government 2011-present scorecard on LR - in the next post.

Wednesday, May 7, 2014

7/5/2014: 1980s and 2010s: Live Register tells the tale...


Here are some comparatives relating to un- and under-employment between the current crisis and the dreaded 1980s malaise summarised in a chart :

Click on chart to enlarge

Remember, Ireland today is not Ireland in the 1980s...

Tuesday, February 18, 2014

18/2/2014: Wages and Employment: Irish labour market plight


This is an unedited version of my Sunday Times column from February 9, 2014.


In recent months, Irish Government has gone into an overdrive, producing various reports, scorecards and papers on the Irish economy. Much of this activity is a welcome sign that various Departments are starting at last to engage with the world beyond the halls of civil service and political establishment.

The most recent report card on the Irish economy, courtesy of the Department of Finance, presents an interesting read. The document provides an insight into Official Ireland's view of the future, with forecasts covering 2015-2018 medium-term priorities for the Government, including: managing public finances, focusing on jobs, and restructuring the financial system.

To those of us inhabiting the real economy, removed from the MNCs and Government finances, of key importance here are the objectives of "reviving domestic demand" and "increasing employment". The Department’s overarching framework for achieving economic growth in the economy rests on the assumption that over 2014-2016, both total domestic demand (sum of public and private consumption of goods and services and investment) and exports will be positive contributors to growth. In fact, domestic demand is forecast to add, on average, 1.2 percentage points to economic growth annually, accounting for more than half of the GDP expansion in 2014 and 2015 and over 40 percent of growth in 2016.

The Department of Finance vision of the future is a positive one, especially for the financially battered Irish households. Alas, it also reflects some potential contradictions – a sign of the overall dilemma inherent in our economy’s structure. For all the talk about recovery and regaining of our economic independence, Ireland is still facing years of dealing with the debt crisis as well as sustained fiscal austerity. Growing out of this predicament can only be achieved by pushing up exports. But this, in turn, requires moderation in production costs and, thus, suppression of domestic demand. As the 1990s showed, you can’t have both, growth in exports and growth in the domestic economy, until we erase the debt overhang.


By definition, increases in domestic demand can only come from either public or households' consumption and investment uplifts or both.

Growth in Government spending on both current and capital goods and services is not on the cards. In 2014 and 2015 Irish fiscal tightening will continue to reduce domestic demand. In particular, fiscal consolidation, as planned, will take 1.8 percent of GDP in 2014 and 1.1 percent of GDP in 2015. Thereafter, we are still set to face the so-called 'preventative arm' of the EU’s Stability and Growth Pact (SGP). Under the 2011 Six-Pack legislation amending the SGP, a number of fiscal rules will apply to Ireland, including the requirement to continue reducing structural imbalances by at least 0.5 of GDP per annum, plus the debt break mechanism designed to draw debt to GDP ratio down toward 60 percent benchmark over time.

Which means the households are expected to fund the fiscal adjustments in 2014-2015, and fiscal maintenance in 2016 and beyond. All while delevaraging own debts and paying for the banks deleveraging their loan books, without dipping into deposits which will have to remain high to sustain core banking sector performance metrics.

Meanwhile, the Department of Finance forecasts that Ireland's unit labour costs adjustments over 2008-2015 will total 21 percent, relative to the Eurozone average. This projection, turn, underwrites the forecast growth in our exports.

Just how the households of Ireland can be expected to deliver on all of this is anyone's guess. An even bigger guess is required to explain as to how all of the above financial pressures on Irish households can be dealt with while increasing private investment and consumption, e.g. growing domestic demand.


The answer to the above questions rests with the outlook for the labour markets and wages.

In 2013, Irish economy seen the return of growth in employment - the only significant bright spark on otherwise bleak economic horizon. Based on the latest data we have, in 12 months through September 2013, numbers in employment rose in all sectors in Ireland, with exception of Transport and storage, Administrative and support services, Public administration, and Health and social work. Non-agricultural employment rose by 33,000 and the bulk of new employment was generated in the jobs with 35 and higher average weekly paid hours. In fact, in Q3 2013 compared to Q3 2012, the number of people in employment more than 35 hours per week rose 52,500.

This means that employment growth is now beginning to support domestic demand growth.

The problem is that this support is coming off extremely low levels. Between 2008 and 2013, number of jobs with weekly work hours in excess of 35 hours has fallen 242,500. And gains in employment so far are still fragile. At current rates of growth, it will take us some 13 years to get back to the same levels of full-time employment. Of all sectors, only three are currently registering larger number of jobs than in 2007-2008 period: Accommodation and food, Information and communication, and Health.

And the latest Live Register figures released this week show that controlling for State Training Programmes participation, declines in the numbers on the Live Register remained rather static over the last 4 months.

With employment rising off low levels the other source for growth in domestic demand can be found in earnings. And, aptly, in recent months, there has been resurgence in political chatter about the need to raise wages.

In part, these calls are driven by wages dynamics during the crisis. As of the end of September 2013, average weekly earnings in Ireland were down across all sectors by EUR16.40 compared to the same period in 2012 and down EUR31.37 compared to 2008 average. However, earnings were up significantly in Information and communication: rising EUR40.28 per week on Q3 2012 and up EUR64.28 on 2008 levels. This is a sector with employment that is predominantly capturing foreign workers into new jobs. In turn, these workers have only tenuous connection to the domestic economy: they rarely invest in Ireland, do not save here and are more likely to spend money abroad than the long-term residents. In almost all sectors of the economy linked more directly to Irish resident workforce, earnings are still declining.

So employment might be growing, but wages are declining or stagnant. Which does not bode well for household incomes and, in return, for domestic demand growth story.

More importantly, earnings deflation or stagnation must continue if the Government projections for exports growth were to materialise.

The maths are further stacked up against the theory of domestic demand growth fuelled by wages rises. Given changes to taxes over recent years, a euro increase in wages from current levels for an average household will yield less than 50 cents in the gains in the disposable income. When juxtaposed against the non-discretionary spending, such as funding mortgages, this means that wages increases are not exactly an efficient path to growing domestic demand. Based on Central Bank data, average mortgage in arrears today is EUR190,372. Per CSO, average household income is around EUR61,000pa, once we adjust for unemployment. Which means that at current tax rates, a 1.5 percent increase in income (corresponding to average weekly earnings rising by EUR10.13 on their Q3 2013 levels) is not enough to offset a 0.25 percent rise in mortgage interest.

This week, we have seen the publication of the research paper showing that some 100,000 households in Ireland are unable to pay their mortgages despite having regular income from employment. That is roughly 63 percent of all mortgages in arrears.

Put simply, from economy’s point of view, it is more effective to raise and extend mortgages interest relief than attempt fuelling wages inflation. With ECB’s policy firmly geared toward lower rates, one might be excused thinking that interest rates increases are for now a distant prospect, but in 2013, house loans rates for outstanding mortgages in Ireland went up 0.1 percent compared to the same period in 2012, while rates of outstanding consumer loans were up 0.34 percent. Overall, these increases, suggest that just to keep up with the cost of funding our immense household debt overhang, households need to see wages increases of some 2.2-2.4 percent per annum. Unless you work in ICT, this is not on the books, given supply-demand imbalances in skills and jobs in this economy.

Which leaves us with only one sector where realities of supply and demand have little to do with pay and employment and where wages increases can be imposed by the state: the public sector. This is precisely where pressures to raise wages are currently emerging, driven by political, not economic considerations. With local and European elections approaching, Labour wing of the current Government is trying desperately to force the reversal of their slide in electoral approval ratings. Labour's traditional support base - the Unions - are happy to oblige, in return for concessions of value to their members.

The problem with this, however, is that in order to keep labour costs competitive on the aggregate, wages hikes in the public sector will require more wages ‘moderation’ somewhere else in the economy. Furthermore, with fiscal policy breaks still in the hands of the EU, increases in the lower skilled wages in public sector are likely to benefit incumbent employees at the expense of the newcomers. And if productivity growth in private sectors does not compensate for labour cost increases in public sector, we will be heading for new layoffs, slower jobs creation and, thus, contracting domestic demand.


Our economy is between a rock and a hard place. We are living through the slowly unfolding nightmare of the exports-led recovery – a recovery during which households’ earnings and employment growth are unlikely to reignite domestic economy any time soon. The only way this dilemma of wages vs exports can be resolved is if it is accompanied by a rapid reduction in household debt. But, of course, you won’t find that featuring anywhere in the Official Ireland glossy presentations or in Labour Party’s exhortations about the need for wages growth.



Box-out:
This week, Irish Spirits Association published the latest statistics on our whiskey sector. According to the association data, Ireland had only 4 registered distillers delivering gross value added to the economy of EUR568 million for all spirits produced. This compares against 108 distillers of whiskey alone, pumping out value added of ca EUR3,630 million in Scotland. Total exports in Ireland stood at 6.2 million cases per annum. Scotch exports were fifteen times that number. The figures highlight both a massive potential for Irish whiskey growth and a huge gap between our sector output and that of our next-door neighbours. Looking at the Scottish model, it is clear that Ireland’s decades-old policy of industrialising production in the whiskey sector has failed spectacularly. We need a new policy approach focusing on stimulating independent distilleries, catering to higher value-added premium segment of the market, and delivering rapid innovation with focus on high quality. Marketing efforts of our trade facilitation agencies are not enough.

Thursday, January 9, 2014

9/1/2014: Live Register: December 2013



Live Register for December was published earlier this week. Let's take a look at the recent changes and trends.

Using seasonally-adjusted data:

  • December 2013 LR stood at 402,800, lowest reading since May 2009 and down 6.7% y/y. October 2013 reading was down 6.2% on October 2012, so strong downward trend is clearly present.
  • Good news is that in 2013 the LR declines came alongside increases in labour force participation. In Q3 2013, LR averaged 416,100, down 19,633 y/y, while labour force participation increased 16,300. We don't have data for labour force participation for Q4 2013 year, so that comparative will have to wait.
  • Over Q4 2013, average Live Register numbers fell 2.39% on Q3 2013 average and was down 6.15% year on year. The latter marks acceleration in LR declines : in Q3 2013 LR average was down 4.51% y/y.
  • Overall seasonally-adjusted LR declined 28,800 y/y in December and was down 3,300 m/m.

Under-25 years of age: 

  • Number of LR recipients under 25 years of age stood at 62,400 in December 2013, down 11.6% y/y (-8,200) and down 900 on October 2013.
  • Stripping out some volatility, Q4 2013 average was down 3.46% q/q and 11.1% y/y for those under 25 years of age.

Casual and Part-time Workers: 

  • 81,382 casual and part-time workers were on the Live Register in December 2013, down 7.6% y/y
  • On a quarterly averages basis, Q4 2013 figure was 4.2% lower than Q3 and 6.5% lower than Q4 2013.

Coupled with lower jobs creation for the younger workers and slower growth in part-time employment reported in Q3 2013 QNHS data, the above facts suggests that significant share of overall improvement in the Live Register can be down to exits from the LR that are neither registering as unemployed nor employed. This, of course, would mean they are either dropping off unemployment schemes due to expiration of benefits and/or emigrating. Alas, we have no real data on what happens to those who exit the LR schemes.

However, we do have data on State Training Programmes (STPs) participation - counting individuals who do receive LR financial supports, yet are not counted as being on LR. Do note, we also have a lag in reporting of these numbers with the latest data currently available for November 2013.
  • In November 2013, 85,738 individuals were in STPs - up 2% (+1,677). M/m STPs participants rose 1,100, accounting for almost 1/3 of the 3,500 decline in overall live register in October-November 2013.
  • Combining STP participants and official LR counts, total number of those on unemployment supports in December 2013 stood at 488,538 (using November LR figure) against November count of 491,838.

On average, in Q4 2013, 23% of Irish workforce was in receipt of unemployment assistance, up on 22.2% in Q3 2013 and down on 23.1% in Q2 2013. In Q4 2012 the same proportion was 24.1%.

The good news is that even accounting for those on STPs, Live Register total has fallen back in 2013. In Q4 2013 average total LR+STPs numbers were down ca 4.7% y/y (assuming there is no dramatic change in STPs numbers when these are reported for December).

Some trends next.

First overall LR and LR with training programmes included:


Both are off-peaks (good thing, assuming it is happening not by throwing people into poverty), but while Official Live Register is trending strongly down, once training programmes are included, the downward trend is shallower.

Live Register for under-25 year olds:


Again, good trend - downward and strong - stronger rate of recovery than in the early 1990s. Of course we also have more outflows due to emigration today than in the 1990s.

Overall, 25 year-olds as proportion of total Live Register today are at their historical low of 15.4%:


Tuesday, November 26, 2013

26/11/2013: Broader Unemployment & Underemployment in Ireland: Q3 2013


This is the first post on the QNHS results for Q3 2013, covering broader metrics of unemployment as reported by the CSO, plus the State Training Programmes (STP) participation.

Terminology first:

Per CSO data:

  • PLS1 (unemployed persons plus discouraged workers) unemployment rate stood at 13.8% down from 14.8% in Q2 2013 and 16% in Q3 2012. Compared to peak, PLS1 is now 2.4 percentage points lower. Q3 2013 rate stands at the lowest since Q4 2009.
  • PLS2 (PLS1 + Potential Additional Labour Force) rate declined from 16.2% in Q2 2013 to 15.2% in Q3 2013. The rate was 17.1 in Q3 2012. Current rate is the lowest since Q1 2010 and is down 2.1 percentage points on the peak.
  • PLS3 (PLS2 + others who want a job, not available & not seeking for reasons other than being in E/T) rate fell to 17.5% in Q3 2013 from 18.2% in Q2 2013 and is now down 1.5 percentage points on Q3 2012. PLS3 is down 1.7 percentage points on peak and is the lowest reading since Q1 2010.
  • PLS4 (PLS3 + underemployed) was at 23.5% in Q3 2013, down on 24.7% in Q2 2013 and on 25.5% in Q3 2012. Relative to peak the rate is down 2.3 percentage points and this marks the lowest reading since Q4 2010.
  • Adding State Training Programmes participation data from the CSO Live Register reports, PLS4+STP measure is now at 27.0% down on 27.8% in Q2 2013 and 28.9% in Q3 2012. Compared to peak the measure is down 1.91 percentage points and the measure is at its lowest level since Q1 2011.
  • Finally, adding estimated emigration rate, PLS4+STP rate rises to close to 28.0% in Q3 2013, down on 28.7% in Q2 2013. This is an estimate, so should be treated with caution.
Charts to illustrate and summarise:


While the above data is positive, it should be treated with some caution, as the turnaround in employment driving the above statistics is reflective of significant increases in part-time and self-employment figures. In addition, with just 4 quarters of downtrend in the series so far, the dynamics, while encouraging, are yet to be fully established.

Additional good news was provided by the Labour Force numbers:

  • Labour Force numbers rose to 2,182,100 in Q3 2013 from 2,165,800 in Q3 2012, gaining 16,300 year on year.
  • Labour force numbers were up 44,600 on crisis period trough in Q3 2013.
  • Crisis trough to pre-crisis annual average stands at 136,400. Last 12 months average relative to pre-crisis average stands at -115,450, which means we are around 2.5-3 years out from closing the gap.


Stay tuned for more analysis tomorrow.

Friday, November 1, 2013

1/11/2013: Decent News on Live Register Front: October 2013

Live Register numbers for October released yesterday are pretty good, for a change. 

On a seasonally-adjusted basis, overall official Live Register counts declined to 409,900 from 413,600 in September. Seasonally-adjusted LR is now down 5.60% y/y - an improvement on decline of 4.9% recorded back in September.

3mo MA also is down 5.03% year on year, and 2.2% lower on 3mo through July 2013. 

So decent headline readings, consistent with continued trends working through LR overall:
1) Outflows due to new jobs creation
2) Outflows due to emigration and benefits expirations

Level changes: m/m down 3,700 and y/y down 24,300. 

Compared with Q1 2011 average - the last period prior to the current Government coming into office, Live Register is down 3.8% in the last 3 months through October 2013.



Two charts above also show Live Register with State Training Programmes participation added to it (LR+STPP). This broader measure of LR currently stands at 485,850 in October (I use September figure for STPPs as this is reported with one month lag). Assuming this holds, LR+STPP numbers are now 5.8% below where they were in October 2012 (note, September STPP figure more likely underestimates the October numbers, as there is very strong volatility and seasonal increases in September-November). 

This contrast with 3.7% decrease in LR+STPP recorded in September. Now, again - keep in mind that September numbers are the true comparative, as they are reflective of the recorded levels of STPPs. 

Back to october figures. The trend for LR+STPP is now to the downside when we strip out some of the monthly volatility. 3mo MA for LR+STPP currently runs at 1.35% lower than 3mo MA through July 2013 and is down 4.2% y/y. This confirms the decline of 2.4% recorded in LR+STPP y/y basis for the 3 months through July 2013.

Current 3mo MA is 4.7% below Q1 2011 reading for LR+STPP.

Broadly-speaking, the numbers are encouraging.

Another interesting trend in the LR participation by the under-25 years of age: this is down massive 10.4% y/y in October and was down 10.3% in September. On 3mo MA basis, the figures are down 10.4% y/y and are down 3.4% on previous 3mo MA through July 2013. I wonder how much of these declines is due to cuts to benefits and expirations of benefits and younger people removing themselves out of the labour force.


Finally, Casual and Part-time Workers on LR have fallen 5.1% y/y in October and were down 3.3% in September. On 3mo MA basis, the figures are down 5.7% on previous 3mo period through July, and are down 3.6% y/y.


Summary: overall we have encouraging changes in the LR. More analysis is needed to decompose these into jobs creation numbers as opposed to benefits expirations and emigration. More current data is needed on State Training Programmes participation (this will be available for October when November LR is released). A summary of changes is shown in the chart below:



Updated: Revealing some of the mysteries of 'improving' Live Register, here's an article from The Examiner: http://www.irishexaminer.com/budget/news/reality-behind-live-register-stats-246183.html

Thursday, August 29, 2013

29/8/2013: Broader Unemployment & Underemployment in Ireland: Q2 2013


On foot of the latest data from the QNHS (broad trends analysis here), let's take a look at the broader measures of unemployment, as reported by the CSO (with the last measure: PLS4+STP being compiled by myself based on CSO data from the Live Register and QNHS).

Here are the core definitions, used:


And the numbers are:



  • PLS1 - unemployed persons plus discouraged workers - rose from 14.6% in Q1 2013 to 14.8% in Q2 2013, but declined 1.3 percentage points on Q2 2012. Relative to peak (16.2% in Q3 2011), the indicator is now down 1.4 percentage points, which is a pretty poor performance, when you think of it: 1.4 ppt down in 7 quarters).
  • PLS2 is at 16.2% in Q2 2013, up on 16% in Q4 2012 and Q1 2012. Year on year, indicator is down 1.0 percentage points and it is down 1.1 percentage points on peak attained in Q3 2011. Again, poor performance relative to peak.
  • PLS3 is at 18.2%, up on 18.0% in Q1 2013 and down 0.7 ppt on Q2 2012. Relative to peak the indicator is down 1.0 percentage points with the peak at Q3 2011.
  • PLS4 is at 24.7%, which is down on 24.9% in Q1 2013 and is also down 1.1 ppt y/y. Q2 2012 was the peak reading for indicator, so PLS4 is down now 1.1 ppt on peak too - decline delivered over 4 quarters.
  • Finally, adding State Training Programmes participants to PLS4, we have PLS4+STP indicator at 27.8%, down on 28.9% in Q1 2013 and down only 0.5 ppt on Q2 2012. Indicator peak was attained in Q3 2012, so the indicator is now down 1.1 ppt on peak.
Summary of y/y and relative to peak changes recorded in Q2 2013 is here:



Lastly, gains in the labour force illustrated:


The above marks a nice increase in the labour force participation out to 2,170,700 in Q2 2013 from 2,137,500 in Q1 2013 and 2,159,100 in Q2 2012. The increase, however, comes off the low base to begin with and basically returns labour force numbers to the levels where they were back around Q3 2011.

Summary: Broader unemployment and underemployment metrics are improving y/y but not q/q. The broadest measure PLS4+STP down very marginally y/y by just 0.5 percentage points. This is hardly encouraging. On a positive side, all metrics are showing signs of stabilisation, albeit at very high levels of unemployment and underemployment. In most basic terms, with 27.8% of our broader potential workforce either unemployed, underemployed or in state training programmes, we have a real problem on our hands, still, and it is not getting better at any appreciable rate of improvement.

29/8/2013: Some positives v negatives from QNHS data: Q2 2013

Latest QNHS figures from Ireland are encouraging. Actually, given much of the tough news on the front of employment and jobs creation prior, these are heart warming. Here are the headlines:

Employment:
  • "There was an annual increase in employment of 1.8% or 33,800 in the year to the second quarter of 2013, bringing total employment to 1,869,900. This compares with an annual increase in employment of 1.1% in the previous quarter and a decrease of 1.3% in the year to Q2 2012." This is good. Employment is up against adverse demographic effects, which is good, but it is also up due to superficial effects of reclassifications of some categories (see warning below).
  • Even better news: "Full-time employment increased by 21,600 or 1.5% in the year to Q2 2013 while part-time employment increased by 12,100 or 2.8% over the year." So levels of increase in full-time employment are outstripping increases in part-time employment, implying that average jobs pool quality is not declining anymore.
  • This marks third consecutive quarter of q/q increases in employment: "On a seasonally adjusted basis, employment increased by 9,600 (+0.5%) in the quarter." There was a seasonally adjusted increase in employment of 9,000 (+0.5%) in Q1 2013 and 12,100 (+0.7%) in Q4 2012.
  • Employment increases and decreases composition are not sending a good signal, with higher value-added sub-categories of employment up: "Employment fell in five of the fourteen economic sectors over the year... The greatest rates of decline were recorded in the Administration and support service activities(-7.9% or -5,000), Transportation and storage (-5.4% or -4,900) and Public administration and defence; compulsory social security (-4.5% or -4,500) sectors. The largest rates of increase were recorded in the Agriculture, forestry and fishing (+18.7% or 16,300) and the Accommodation and food service activities(+8.0% or 9,600) sectors. 
  • Here is a warning shot on the above figures: "In the case of the Agriculture, forestry and fishing sector it can be noted that estimates of employment in this sector have shown to be sensitive to sample changes over time." So, wait... +16,300 'new' jobs in Agriculture etc are really old jobs reclassified... or at least a large share of these are... Oops.. Note that this exactly matches decrease in the 'Not in the labour force' category (-16,300 y/y) and this knocks out quite a bit of wind out of the 'jobs creation' figures sails...

Unemployment:
  • "The seasonally adjusted unemployment rate decreased from 13.8% to 13.7% over the quarter while the number of persons unemployed fell marginally by 500 persons, again on a seasonally adjusted basis." This is news in so far it is 'official' QNHS reading, but we knew 13.7% figure back in May when we had the standardised rate of unemployment estimate from Live Register.
  • "Unemployment decreased by 22,200 (-6.9%) in the year to Q2 2013 bringing the total number of persons unemployed to 300,700. This is the fourth quarter in succession where unemployment has declined on an annual basis." Which is good news, indeed, except, wait... what about the 16,300 'new' jobs in Agriculture, Forestry & Fishing flagged above? Marginal decline of just 500 in terms of q/q seasonally-adjusted unemployment is a poor reading, to be honest. Better than an increase, but still, very weak. This weakness suggests that the bulk of 22,200 declines in unemployment rosters is due to exits and reclassifications of workers, not due to jobs creation.
  • "The long-term unemployment rate decreased from 9.2% to 8.1% over the year to Q2 2013. Long-term unemployment accounted for 58.2% of total unemployment in Q2 2013 compared with 61.8% a year earlier and 56.1% in the second quarter of 2011." What we do not know here is whether this decrease was due to exits from benefits or entries into jobs or move to state-run training programmes. I will do analysis on these later, so stay tuned.

Labour force participation:

  • Good news: "The total number of persons in the labour force in the second quarter of 2013 was 2,170,700, representing an increase of 11,500 (+0.5%) over the year. This compares with an annual labour force decrease of 19,600 (-0.9%) in Q2 2012." 
  • The above is a good bit of news and it is made even better when we consider that increases in labour force were driven by increased participation rather than by demographic effects. In Q2 2013 there was a negative demographic effect cutting -16,300 from the overall labour force. This was more than offset by "a positive participation effect of 27,800 on the size of the labour force over the year.
  • There was "an increase in the overall participation rate from 60.1% to 60.5% over the year to Q2 2013." Which is excellent news.
  • "The number of persons not in the labour force in Q2 2013 was 1,415,600, a decrease of 16,300 (-1.1%) over the year." This seems to be related to reclassifications into Agriculture, etc. sector.
To summarise:
We have some positive news above, but overall, numbers remain obscured by reclassifications, changes in composition and lack of clarity on flows in- and out- of unemployment. 

Analysis of broader measures of unemployment, more indicative of underlying quality and nature of changes in the aggregate figures, is to follow, so stay tuned.

Friday, June 7, 2013

7/6/2013: Government 'scorecard' on unemployment: May 2013

In the previous post (http://trueeconomics.blogspot.ie/2013/06/762013-live-register-may-2013-headline.html) I looked at the very broad trends in the Live Register data for May 2013. This time, let's do something slightly cheeky. Recall that the Government is keen on referencing jobs creation and unemployment reduction numbers as the sign of the success of the state policies. Recall also, that I have previously showed, repeatedly, that at the very least when it comes to broader unemployment data, these claims might be a serious over-stretching of reality (http://trueeconomics.blogspot.ie/2013/05/3052013-official-broader-unemployment.html and http://trueeconomics.blogspot.ie/2013/05/3152013-part-time-v-full-time.html ).

Before we proceed, let us recognise the following facts and plausible conjectures:

  1. Irish Government has inherited a massive task when it comes to dealing with unemployment and jobs creation on foot of the mistakes made by the previous Government and, more importantly, on foot of an unprecedented economic crisis we face;
  2. Irish Government has very limited resources it can deploy to deal with unemployment crisis;
  3. Irish Government has been making, in my opinion, honest efforts to attempt dealing with the crisis.
With the above points recognised, let's build a table measuring the current Government progress on jobs creation based on Live Register stats. With a dose of over-exaggeration (please, do not take this as a direct indictment of the Government efforts etc, just as a response to Government-own propensity to push out unemployment numbers as evidence of own success), here is 

Irish Government Performance Score Card

As marked by blue color, Official Live Register tends to confirm Government's claims: since taking the office, this coalition saw, to-date, a 3.8% reduction in the Official Live Register. However, the same period saw an increAse of 4.3% in casual and part-time workers who require some unemployment supports to sustain themselves and their families, as well as a massive 32% increase in state training programme participants. The latter is good, in so far as people are getting at least some training and apprenticeships access, but it is also bad news for the Government, as it means that in reality, actual numbers of those receiving Live Register unemployment assistance and supports rose 0.8% on Q1 2011, not fallen. Meanwhile, as we know, over Q1 2011-Q1 2013, official labour force numbers fell 0.55%.

7/6/2013: Live Register May 2013: Headline Trends


Live Register numbers for May 2013 were out yesterday and I am only now getting to them (busy few days speaking and dealing with students etc), so here is the first of two posts on the subject. As usual, first up: headline numbers.

-- Total number of persons on Live Register in May stood at 426,100, which is 700 down on April 2013. Y/y LR is down 2.52% and this is an improvement on 2.29% decline recorded in April 2013. To-date Q2 2013 figures are down 0.53% on Q1 2013 and down 2.58% on Q2 2012. Again, as with monthly readings, this y/y decline in Q2 2013 to-date is deeper than the decline in Q1 2013 which posted -2.29%.
-- Total number of Live Register supports recipients to-date (official number, as distinct of the actual one - see data on state training participants below) is 266,607 ahead of pre-crisis 2000-2007 average.




In the charts above, I am referencing Live Register inclusive of the State Training Programmes participants. The reason for this separate data reporting is that while they continue to receive unemployment (Live Register) benefits, they are not included in the official Live Register counts. Please note: state training programmes participation is reported with 1 month lag compared to Live Register, so the latest number we have is for April 2013, which means that combined metric for May simply incorporates May 2013 data for Live Register, plus April 2013 data for State Training Programmes participation.

  • In April 2013, there were 86,042 Live Register supports recipients who were officially engaged in State-run Training Programmes (STP). This was up 4.72% on April 2012.
  • In April 2013, m/m change in Live Register was -200, while m/m change in STP was +673. In other words, in April, entire m/m 'decrease' in the official Live Register was 3 times smaller than an increase in STP.
  • In April 2013, y/y change in official Live Register was -10,000, with 3,881 of these accounted for by increases in STP. 
  • Put differently, in April 2013, m/m there was no decrease in unemployment benefits recipients' numbers at all, and in fact there was a m.m increase in these of some 473. Also in April 2013, y/y officially-reported massive decrease of 10,000 in official Live Register was really a smaller scale (albeit still welcome) decrease of 6,119.
  • In May 2013, estimated Live Register + STP measure of unemployment benefits claimants stood at 512,142, which represents 23.96% of the labour force. Put differently, almost 1/4 of Ireland's labour force is currently in receipt of some form of unemployment assistance, which is well ahead of the official Live Register-implied estimated unemployment rate of 13.7% which would correspond to roughly 292,838 individuals.




  • The numbers of those on the Live Register under the age of 25 was stuck in May at the same level of 68,900 as in March and April 2013. This represents a decline on 69,700 recorded in February and roughly corresponds to the levels last seen in December 2008-February 2009. However, it is most likely that these numbers are superficially depressed by the STP participation. Sadly, we do not have data on STPs reported regularly by the CSO to determine the exact extent of unemployment supports in the younger population.
  • In May 2013, 16.17% of all Live Register supports recipients were under 25.
  • Y/y, number of younger LR recipients was down 7.27% and so far in Q2 2013 the number is down on average 7.48% on Q2 2012.


Per CSO: "The number of long term claimants on the Live Register in May 2013 was 191,997." Overall, the number of long term claimants increased by 3,268 (+1.7%) y/y, while the proportion of the short-term claimants dropped to 54.5% (229,740) from 56.4% (244,178). This suggests that, as would be normally expected, short-term unemployed are finding it easier to find jobs than their longer term counterparts, and that, potentially, this effect is being reinforced by accelerating exits of the long-term unemployed due to benefits expiration.

Friday, May 31, 2013

31/5/2013: Part-time v Full-time Unemployment in Ireland


"Less positively, the Quarterly National Household Survey showed that most of the gains in employment have been in part-time rather than full-time jobs." Irish Times : http://www.irishtimes.com/business/economy/ireland/employment-grows-for-third-successive-quarter-1.1412103?utm_source=dlvr.it&utm_medium=facebook

Sadly, I must say, this is simply incorrect.

In Q1 2013, full-time jobs stood at 1,391,100 which is down on Q4 2012 when these counted 1,398,700 (-7,700 q/q change) and is down on Q1 2012 when the full-time jobs counted 1,394,800 (-3,700 y/y). This is also down on Q1 2011 when full-time jobs numbered 1,401,800 (a net loss of 10,700 full-time jobs in 2 years).

Part-time jobs rises accounted for all, repeat all, increases in Q1 2013: these increased to 454,400 in Q1 2013 from 450,200 in Q4 2012 (+4,200 q/q) and were up on 430,200 (+24,200 y/y) on Q1 2012. This is goodish, as - obviously - it is better that people are working at least part-time. However, it is simply incorrect to claim that "most of the gains in employment have been in part-time rather than full-time jobs" when there were DECREASES in full-time jobs.

Worse than that: the picture is further distorted by the differences in changes in part-time underemployed jobs numbers and part-time not underemployed numbers.

Year on year, part-time not underemployed numbers rose from 291,300 in Q1 2012 to 298,500 in Q1 2013 - a gain of 7,200 or just 29.7% of all part-time (and net) jobs gained y/y. The rest 70% of the jobs gains were amongst part-time underemployed. And compounding this, quarter on quarter, numbers of those in part-time employment who are not underemployed actually fell - from 304,400 in Q4 2012 to 298,500 in Q1 2013.

It would help to read the Table 1 of the CSO release : http://www.cso.ie/en/media/csoie/releasespublications/documents/labourmarket/2013/qnhs_q12013.pdf

Thursday, May 30, 2013

30/5/2013: Official Broader Unemployment in Ireland stands at 25%


The latest data for Q1 2013 from QNHS is out today with worrying sub-trends indicating that the labour markets are not showing any significant improvements in broader metrics of unemployment.

CSO defines 4 measures of broader unemployment:
PLS1 indicator is unemployed persons plus discouraged workers as a percentage of the Labour Force plus discouraged workers.
PLS2 indicator is unemployed persons plus Potential Additional Labour Force as a percentage of the Labour Force plus Potential Additional Labour Force
PLS3 indicator is unemployed persons plus Potential Additional Labour Force plus others who want a job, who are not available and not seeking for reasons other than being in education or training as a percentage of the Labour Force plus Potential Additional Labour Force plus others who want a job, who are not available and not seeking for reasons other than being in education or training.
PLS4 indicator is unemployed persons plus Potential Additional Labour Force plus others who want a job, who are not available and not seeking for reasons other than being in education or training plus part-time underemployed persons as a percentage of the Labour Force plus Potential Additional Labour Force plus others who want a job, who are not available and not seeking for reasons other than being in education or training.

Since all exclude training, we can add those on State programmes into PLS4 to arrive at PLS4+STP - the broadest measure of unemployment.

Here is a chart:



Year on year through Q1 2013:

  • Standard unemployment (PLS1) declined 1.4% from 16.0% in Q1 2012 to 14.6% in Q1 2013. This is good news, made even better by realising that Q1 2013 reading stood at the lowest level since Q1 2010 when it was 14.2%.
  • Adding potential additional labour force to the PLS1 we have PLS2 measure, which in Q1 2013 was 16.0%, down 1% o n Q1 2012 and marking the lowest reading since Q1 2010 when it was registering 15.1%.
  • PLS3 is the above unemployment plus others who want a job, not available & not seeking for reasons other than being in education or training. This measure stood at 18.0 in Q1 2013, down on 18.8% in Q1 2012 (-0.8% y/y) and bang-on identical to the levels in Q1 2011.
  • Last official measure reported by CSO, PLS4 combines PLS3 and those who are underemployed (in part-time employment, but are seeking full-time employment). PLS4 in Q1 2013 was 25.0% - identical to Q1 2012 and up on Q1 2011 when it stood at 23.7%. Thus, once underemployed are added into the equation, Irish unemployment stood still over the last 12 months. This is not great by any means.
  • Finally, I compute PLS4+ State Training Programmes participants by combining QNHS data with Live Register. In Q1 2013, PLS4+STP measure stood at 29.0%, up 0.7% on Q1 2012 and marking the highest historical point for any quarter on the record (previous record was recoded at 28.991% in Q3 2012, which compares against Q1 2013 level of 28.994%).


Chart 2 shows Q1 2013 measures relative to their historical peaks.



Overall labour force participation rate fell again, this time -0.44% y/y and labour force is now down 162,600 on peak.


Notice: the above numbers do not account for emigration and the above unemployment numbers do not account for those who are of labour force participation age, but are not seeking employment and are no longer registering as being a part of labour force. If gross emigration in 2008-2012 stood around 300,000, and assuming that all of it related to families, taking average participation rate at current 59.5% and applying average size of household to the above emigration numbers implies ca 90,000 emigration for those who otherwise could have been in the labour force. With this number factored in the above numbers change as follows:

  • PLS1 standard unemployment would rise from 312,075 to 401,325 or in percentage terms, from 14.6% to 18.0%
  • PLS2 standard unemployment, plus potential additional labour force numbers would rise from 342,000 to 431,250 or in percentage terms, from 16% to 19.4%
  • PLS3 = PLS2, plus others who want a job, not available & not seeking for reasons other than being in education or training would rise from 384,750 to 474,000 or in percentage terms, from 18% to 21.3%
  • PLS4 combines PLS3 and those who are underemployed (in part-time employment, but are seeking full-time employment) would rise from 534,375 (or 25.0%) to 623,625 (or 18.0%)
  • PLS4 + STP would rise from 619,744 (or 29.0%) to 708,994 (or 31.8%)
With some serious caution we can say that approximately over 700,000 people in this country are now either unemployed, underemployed, on State Training Programmes or have been forced to emigrate by the realities of this crisis. We can also say, with much more clarity, that - per official figures - broad unemployment and underemployment in this country is running at its highest level ever, or 29%. recorded.

Wednesday, April 10, 2013

10/4/2013: Broader measures of unemployment in Ireland: 2012

Ireland's broader unemployment rates per CSO and adding State Training Programmes participants are as follows:

  • PLS1 indicator is unemployed persons plus discouraged workers as a percentage of the Labour Force plus discouraged workers as of Q4 2012: 14.9%
  • PLS2 indicator is unemployed persons plus Potential Additional Labour Force as a percentage of the Labour Force plus Potential Additional Labour Force as of Q4 2012: 16.1%
  • PLS3 indicator is unemployed persons plus Potential Additional Labour Force plus others who want a job, who are not available and not seeking for reasons other than being in education or training as a percentage of the Labour Force plus Potential Additional Labour Force plus others who want a job, who are not available and not seeking for reasons other than being in education or training as of Q4 2012: 18.2%
  • PLS4 indicator is unemployed persons plus Potential Additional Labour Force plus others who want a job, who are not available and not seeking for reasons other than being in education or training plus part-time underemployed persons as a percentage of the Labour Force plus Potential Additional Labour Force plus others who want a job, who are not available and not seeking for reasons other than being in education or training as of Q4 2012: 24.6%
  • PLS$ indicator including those on State Training Programmes as of Q4 2012: 28.4%


And three charts with dynamics:



Now, y/y changes in percentage points change:
  • PLS1: -0.7 ppt
  • PLS2: -0.6 ppt
  • PLS3: -0.2 ppt
  • PLS4: -0.2 ppt
  • PLS4 and State Training Programmes participants: +0.98 ppt
So one thing is pretty clear: the broader the measure of unemployment we take, the lower is the rate of decline y/y and the smaller is the rate of decline relative to peak. 




Saturday, April 6, 2013

6/4/2013: Part-time & Casual Employment Supports in Ireland

Let's do some more numbers crunching on Irish Live Register for Q1 2013.

In Q1 2012 official Live Register declined 9,902 on Q1 2012 (-2.26%) and down 14,936 on Q1 2011 (-3.37%). Sounds like some achievement. 

Alas, of the above numbers:
  • Of the 9,902 decline on Q1 2012, the decline was just 7,154 when we take into the account state training programmes (-1.38%) and there was a rise of 1,181 (+1.34%) in the numbers who claim Live Register supports while being in casual and part-time employment (more on this below). Thus, the numbers of those fully dependent on Live Register have fallen only 8,335 (-1.94%) on Q1 2012.
  • Of 14,936 decline on Q1 2011 (-3.37%), there was actually an increase in those claiming supports of 3,217 (+0.63%) when we take into the account state training programmes, and there was a rise of 4,352 (+5.13%) in the numbers who claim Live Register supports while being in casual and part-time employment (more on this below). Thus, the numbers of those fully dependent on Live Register have fallen only 1,135 (-0.27%) on Q1 2012.

Now, some would remark that it is better when people are part-time or casually employed, then when they are fully dependent on Live Register supports. I shall, of course, agree with such a statement. However, let's look at what has been happening with casual and part-time employment numbers over time.

  • In 2002-2007 monthly volatility(measured by standard deviation) in the numbers on Live Register who were in casual and part-time employment stood at 1,031. This has risen to 3,979 for the period of 2010-present. In other words, overall casual and part-time employment might have declined significantly in terms of stability of income it offers and, thus reliance on Live Register. This can be due to different quality of skills and occupations for people singing onto Live Register with casual and part-time employment, or it might be due to changes in Live Register supports' eligibility, or both.
  • Of all categories of Live Register signees, volatility of numbers on Live Register has risen only  for part-time and casual workers over 2010-present compared to 2002-2007.2
  • For the Live Register inclusive of the state training programmes participants, volatility has actually fallen over the above periods, driven by declines in volatility for the numbers of signees who are fully reliant on Live Register supports.


To see the deterioration in the quality of casual and part-time employment linked to Live Register participation, consider the chart below:


The chart clearly shows dramatic increase in seasonality of the numbers of those on Live Register in casual and part-time employment for the end of Q2-beginning of Q3 periods since January 2010 as compared to previous years (2002-2007). You can see that the same effect does not appear in the numbers of signees fully dependent on Live Register supports:


6/4/2013: 80 years to deflate unemployment crisis in Ireland?


Continuing with the Live Register data theme: in the first post I covered broader long-term trends in the LR, with the second post looking at some sub-trends relating to nationality of Live Register signees. Here: a quick note on the size of the problem overall.

Total number of persons (officially) on the Live Register declined 2.07% y/y in March, following a steeper decline of 2.40% in February. Compared to March 2011, current reading is down 3.65%.

Thus, March 2013 reading was 165.8% ahead of the 2004-2007 average, 36.1% ahead of 2008-2009 average and is 3.38% below 2010-present average. Taking Q1 2013 average, the Live Register (again, this is official count, excluding those on State training programmes) was up 1.76% on Q4 2012, down 2.26% on Q1 2012 and down 3.37% on Q1 2011.

For the adjusted Live Register (accounting for state training programmes participation), Q1 2013 q/q rate of increase in the Live Register was 1.53% and y/y rate of decrease was -1.38%.

Let me remind you the size of the problem overall:


At the above annual rates of decline (based on Q1 2013 data), it will take 
  • 12.5 years from now to reach 2008-2009 average Live Register levels (which would be consistent with unemployment supports at the levels well above those observed in the 1980s and 1990s) and 
  • 40.5 years to reach 2004-2007 average or 37 years to reach 2000-2007 average.


If you want a really scary number, using y/y change in Q1 2013 in Adjusted Live Register numbers, it will take us 81 years from today to reduce Adjusted Live Register counts to 2000-2007 average level. As a robustness check, the number will be 79 years were we to use Q4 2012 annual rate of decline.

Clearly, the 'turnaround' being signaled by the Live Register is simply not enough to deal with the current problem of unemployment and equally clearly, at current rates of economic 'growth' we either need to raise the speed of economic activity expansion by a factor of 10 or carry out some drastic measures on reforming our unemployment supports in order to see significant reductions in Live Register any time soon.

6/4/2013: Irish Live Register by Nationality: Some Trends


Yesterday, I blogged about Live Register data on overall levels of unemployment supports in Ireland. Today - few charts summing up Live Register trends by nationality.

Total number of persons (officially) on the Live Register declined 2.07% y/y in March, following a steeper decline of 2.40% in February. Compared to March 2011, current reading is down 3.65%.

Meanwhile, the number of Irish Nationals on Live Register fell 1.89% y/y in March, following a decline of 2.39% in February. Current reading stands 3.68% below March 2011 and is down 10.68% on the crisis-period peak. Q1 2013 posted an increase of 1.43% on Q4 2012 and is down 2.21% on Q1 2012 and down 3.45% on Q1 2011.

The number of Non-Irish Nationals on Live Register declined at stronger 2.86% y/y in March than for Irish Nationals. larger decline of 2.45% was recorded for Non-Nationals in February 2013 as well. However, compared to March 2011, current reading is down 3.50% against the comparable period decline of 3.68% for the nationals. Q1 2013 reading for non-Nationals was 3.31% ahead of Q4 2012 - a sharper increase than for Nationals. Q1 2013 reading was down 2.50% for non-Nationals compared to Q1 2012, which represents a sharper decline than for Nationals. Compared to Q1 2011, however, Q1 2013 reading is down 3.03% for non-Nationals against 3.45% for Nationals.

In relative terms, Irish Nationals accounted for 82.16% of the Live Register in March 2013 against 82.01% in march 2012, while for non-Nationals the same ratios were 17.84% in Q1 2013 against 17.99% in Q1 2012. Chart below illustrates:


With small scale changes, there is no to-date reversal in the flat trend in relative shares of two groups in total Live Register numbers that was established around mid-2009 and that corresponds to higher share of Live Register captured by non-Nationals and lower share captured by Nationals. You can clearly see the overall flat trend.

In dynamic terms, chart below illustrates time trends in Live Register presence of three core groups: EU15 (ex-Ireland), EU12 (Accession States) and non-EU migrants.


Share of the EU15 (ex-Ireland) migrants of the total Live Register count fell to 4.8% in March 2013 from 4.87% in March 2012. Over the same time, share of EU12 (Accession States) migrants rose from 9.91% to 9.94%, while share of non-EU migrants declined from 3.21% to 3.10%.

Again, quite interesting dynamics in the above chart. For EU12 Accession States, strong seasonality (and these are already seasonally adjusted stats) shows rises and falls in temporary employment in agriculture and retail sectors, but overall trend since mid-2010 is flat. In contrast, EU15 ex-Ireland trend is that of a decline in Live Register presence. Live Register numbers for non-EU nationals is basically flat since late 2007 and shows no elevation due to crisis. In other words, EU12 nationals number on the Live Register were a strongest driver of Live Register participation increases amongst non-nationals during the crisis and now are changing roughly in line with Live Register changes overall. EU15 ex-Ireland numbers have declined relative to overall Live Register, and non-EU nationals numbers have fallen over the period 2006-2008 and then remained steady in line with overall Live Register trend.