31/8/2014: Changes in Employment by Sector

Previous posts covering QNHS release for Q2 2014 provided analysis of

• Irish dependency ratio: http://trueeconomics.blogspot.ie/2014/08/3182014-irish-dependency-ratio-rises-in.html
• Breakdown of population over 15 years of age by their principal economic status: employed, unemployed, in retirement, students, engaged at home, and 'others': http://trueeconomics.blogspot.ie/2014/08/3182014-qnhs-by-principal-economic.html
• Unemployment and Participation Rates: http://trueeconomics.blogspot.ie/2014/08/3082014-both-unemployment-and.html
• Duration of Unemployment, including distribution by Age Cohorts: http://trueeconomics.blogspot.ie/2014/08/3082014-irish-unemployment-plight-of.html

Here is a summary of changes in employment by sector:

Good news in green, bad news in red.

Several top-level points worth raising:

• Construction employment grew, which is good news, by 3,600 in 12 months through Q2 2014. Bad news is that Industry employment (ex-Construction) shrunk 2,700 over the same period.
• Services employment grew by a sizeable 23,800 in 12 months through Q2 2014 and higher value-added sectors employment expanded by 8,300 on Q2 2013. Many jobs have been added in Professional, scientific & technical activities (+6,100) and in Administrative & Support Services (+6,200) both of which also include MNCs trading in ICT services sectors, which is consistent with strong inflows of younger migrants into Ireland recorded in the year through April 2014. 
• Non-agricultural private sector jobs expanded by 21,400 in 12 months through Q2 2014 (up 1.68% y/y) which is a far cry from the Government boisterous claims of 50-60,000 of new jobs being created. Overall across all sectors, the economy added 31,700 jobs on Q2 2013 level (+1.7% y/y).

Slower rates of growth:

Overall rate of jobs creation has declined significantly in Q2 2014. In Q2 2014, y/y growth in all employment has stood at 1.70%, down from 2.31% growth recorded in Q1 2014 and the slowest rate of jobs growth since Q1 2013. Industry and construction sector jobs growth fell from 1.5% y/y in Q1 2014 to 0.26% in Q2 2014, the slowest rate of jobs growth since the onset of recovery in the sector back in Q2 2013. Services sectors jobs growth also fell to 1.67% in Q2 2014 compared to 1.71% in Q1 2014, and currently stands at the slowest rate of growth in 3 quarters. Non-agricultural private sector jobs growth in Q2 2014 was 1.68%, down from 2.18% in Q1 2014 and the slowest rate since Q2 2013. High value-added sectors jobs growth is down to 1.22% in Q2 2014, the lowest reading in any quarter since Q3 2012.