Saturday, June 14, 2014

14/6/2014: Industry vs ICT Services: Employment in Ireland

Changes in Industrial vs ICT services employment have been dramatic over the recent years. In the decade from 2003, Ireland gained 18,250 new jobs in ICT services and lost 63,425 jobs in Industry (excluding construction). This is just based on annual averages.

In Q1 2014 compared to Q1 2003, there were 19,100 new jobs added in ICT Services and 66,800 jobs lost in Industry.

Here's the problem:

  1. ICT jobs involve hiring of foreign staff and intra-company transfers from abroad, Industry jobs involve more indigenous workers;
  2. Both types of jobs require specialist skills, but transferability of these skills across various employers is much lower in Industry than in ICT Services, so a job lost in Industry is more likely to lead to long-term unemployment than a job lost in ICT
  3. Workers in industrial employment are more likely to be older, compared to workers in ICT Services, which means that their retraining for new careers is less likely and their debt and family exposures are more likely to be significantly larger than for ICT Services workers

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