Showing posts with label Irish workforce. Show all posts
Showing posts with label Irish workforce. Show all posts

Wednesday, August 27, 2014

27/8/2014: Irish Migration Trends by Nationality: 2014


In the previous post I covered aggregate migration and population data for Ireland for 2014 (data coverage is 12 months through April 2014). The post is available here: http://trueeconomics.blogspot.com/2014/08/2782014-migration-population-change-in.html?spref=tw

Now, as promised earlier, lets take a look at the decomposition of the migration data.

First, net migration by nationality:

  • Total emigration from Ireland in 12 months through April 2014 stood at 81,900, which is down from 89,000 in the same period 2013 (a decline of 7,100). This marks the first year of decrease in emigration since 2011.
  • 40,700 Irish nationals emigrated from Ireland in 12 months through April 2014, down 10,200 on the same period of 2013 and marking the first slowdown in outflows since 2008. Latest rate of emigration for Irish nationals is the lowest reading since 2010.
  • Over the 12 months though April 2014, 2,700 UK nationals emigrated from Ireland - which represents a decline in emigration rate for this group of residents of 1,200 y/y. However, this decline was more than off-set by the rise in emigration of 'Rest of EU-15' residents which rose 4,100 y/y to 14,000 in the 12 months through April 2014. 
  • The rate of emigration from Ireland for EU12 Accession states nationals slowed down from 14,000 in 12 months through April 2013 to 10,100 in 12 months through April 2014.
  • For non-EU nationals, the rate of emigration has accelerated to 14,400 in the 12 months through April 2014 from 10,300 in the same period of 2013.




Thus, for the fifth year in a row, Irish nationals represented the largest group of emigrants from Ireland by total numbers. However, if in 2011-2013 Irish nationals represented more than 50% of the total emigration numbers, in 2014 this fell to 49.7%.

Net emigration figures, however, were less encouraging for the Irish nationals.

  • Total net emigration from Ireland stood at 21,400 in 12 months through April 2014, down from 33,100 in April 2013.
  • Irish nationals' net emigration rate was running at 29,200 in the 12 months through April 2014, down from 35,200 in 2013, but still above the rate recorded for any other year since 2006.
  • In contrast with the trend for the Irish nationals, UK nationals posted another year of rising net immigration into Ireland: 2,200 more UK nationals now reside in the country compared 1,000 more in 2013. Rest of EU-15 group posted an increase in the rate of net emigration from Ireland in 2014 (-5,300) compared to 2013 (-2,500). This made 2014 the worst year for net emigration of this group out of Ireland on record.
  • Net emigration of the EU12 Accession states nationals fell to its lowest crisis-period level of 200 in 2014, down from 3,200 in 2013.
  • Non-EU nationals recorded net immigration rate of 11,200 in 2014 which represents the highest rate on record (since 2006).




Chart below shows cumulated changes in migration over the period of 2008-2014:



27/8/2014: Migration & Population Change in Ireland: 2014 data


Population and migration estimates for the 12 months period through April 2014 have been finally released by the CSO with a lag of some 4 months. The figures show some marginal improvement in the underlying trends compared to the disastrous 2013, but overall the situation remains bleak.

Let's start with top level figures first and deal with compositional details in the subsequent post.

Births numbers have fallen to the levels last seen in 2007, from 70,500 in 2013 to 67,700 in 2014. Improving labour market and deteriorating personal finances are more likely behind the trend: the former means lower incentives to stay out of labour market and lower incentives to take maternity leave protection, while the latter means increased pressure to generate second income in the family, which is, of course, automatically associated with having to pay extortionate childcare costs. Whatever the drivers are, this is the births rate peaked in 2010 and has been declining since, neatly tracing out labour markets developments. 2014 marks the first year since 2007 that the rate is below 70,000.

Deaths are running at the rate proximate to 2013 and not far off from 2012. This means that the Natural Increase in population has slowed down to 37,900 in 2014 from 40,800 in 2013 and this marks the lowest natural rate of increase since 2006 and the first sub-40,000 rate of increase since 2007.

Immigration rose in 12 months through April 2014 to 60,600 from 55,900 in the 12 months through April 2013. 2014 figure is the highest since 2009. Emigration declined to 81,900 in 2014 against 89,000 in 2013. This is the lowest level of emigration since 2011 when outflow of migrants from the country was running at 80,600.

Net emigration also moderated in 12 months through April 2014, declining from 2013 level of 33,100 to 2014 figure of 21,400. This marks the lowest net emigration rate for the entire crisis period. Which is, undoubtedly, good news. Bad news, we are still in net emigration mode.

With slower rate of net emigration outflows, net change in Irish resident population was positive in 12 months through April 2014, recording an increase of 16,500 y/y, compared to 7,700 rise in 12 months through April 2013.

A chart to illustrate:

Meanwhile, cumulated 2009-2014 emigration amounted to 479,800, cumulated net emigration for the same period amounted to 142,200. These are actual figures recorded. Taking into the account the trends in Irish migration over 2000-2007 period, the 'opportunity cost' of the crisis is the *net* loss of some 521,000 residents relative to where the population could have been were the trends established in 2000-2007 to remain in place.

A chart to illustrate:

As the result of the above changes in actual migration and natural rate of increases in population, we have the following changes in the working and non-working age populations:

  • Working-age (20-64 year olds) population stood at 2,728,300 as of the end of April 2014, down 14,500 on a year ago and down 64,200 on 2008.
  • As percentage of the total population, working-age population is now standing at 59.2%, the lowest for any period since 2006.
  • Non-working age population is up 31,300 to 1,881,600 in 2014 compared to 2013 and up 188,900 on 2008.
  • Non-working age population now stands at 40.8%, up on 40.3% in 2013 and the highest for any period since 2006.

Charts to illustrate:




Thursday, August 21, 2014

21/8/2014: Shanghai Academic Rankings 2014: Ireland


Earlier this week, I promised to update historical track record of Irish Universities performance in Shanghai Academic Ranking of World Universities. The latest (2014) results are here: http://www.shanghairanking.com/ARWU2014.html

Summary of all Irish Universities rankings by 'neighbourhood':

Top-ranked TCD:

Second best-ranked UCD:

Third best-ranked UCC:

Historical evolution of Irish rankings:

Draw your own conclusions...

Thursday, December 5, 2013

5/12/2013: Irish Education: In Need of Serious Reforms


This is an unedited version of my column in October-November issue of the Village Magazine.


Over the last two decades, Irish economic growth has been primarily driven by a series of financial and investment bubbles. Each one was fuelled by the ad hoc nature of our policymakers’ responses to shifts in global economic trends and their penchant for fetishizing foreign policies fads.

In the mid-1990s, on foot of the US-led dot.com industry explosion, Ireland became the focal point of the investment bubble that saw the state policies and funds inflating the already out-of-touch valuations of the companies. Promising to plug our economy into the Internet of Things, entities from Baltimore Technologies to MediaLab Europe, and everyone in-between, were hovering public and private funds in a race to leapfrog this sleepy island into the 21st century.

In the 2001, at the onset of dot.com hangover, government investment became the new rage. Social Partners climbed over each other to get funding for awe-inspiring schemes usually described as Global Centres for Excellence. This bubble too was based on fads that came to Ireland from abroad, namely from Brussels. To continue fund our fetishes for spending cash we built bungalows at an ever-increasing pace. From 2001 on, Irish economy became an economy built on breezeblocks.

With the bust and the ensuing Great Recession, one could have hoped for a mature review of the policies past and a shift away from our dreamt up grandiose plans. Yet, to-date, the entire response of the two successive Governments to the bust was to feed our hopium addiction. Budget 2009 announcements made amidst the ongoing implosion of the domestic economy promoted aggressively the concept of the Knowledge Economy as our salvation. Truth be told, the Innovation Island is a Potemkin Village.


To see this, one needs to look no further than at our ability to create the base on which a knowledge-intensive economy is built: the human capital.

In my recent speech at TEDx Dublin, I offered a systemic template for assessing any economy’s human capital potential. That system is called C.A.R.E. as it assesses how well a country can Create, Attract, Retain and Enable its workforce’s technical and social skills, talents, creativity, capacity to innovate, engage in entrepreneurship, willingness and ability to take risks. In the nutshell C.A.R.E. is about systems that should put human beings and their abilities at the centre of our society and economy.

Across the entire spectrum of C.A.R.E. systems, education plays a pivotal role. And it is exactly here that many of our policy gaps become painfully apparent.

Firstly, our education system does not enable seamlessly continuous and high quality life-long cycle of learning and training. Secondly, our education system is incapable of sustaining development of such vital aspects of human capital as creativity, ability to manage risks, and engage in ongoing innovation across various domains of knowledge and skills. Thirdly, our education system is inherently elitist. This prevents it from ever becoming a truly functional creator and enabler of human capital economy. With elitism comes the death of innovation and creativity. Fourthly, our education system is riddled with inefficiencies, protectionism and skewed incentives, which lead to sub-standard educational and research outcomes.


Let’s take some of these claims in detail, omitting many considerations for the lack of space.

Since the Finance Act 2004, Irish governments have been working on expanding indigenous R&D activities. Over the last ten years, billions of euros were poured into the tax credits and investment supports. Billions more went to fund higher education institutions’ efforts to sustain research and innovation.

While some third level institutions – namely the top four or five universities – have produced tangible results in driving research output up, the rest remained far behind. Even tope universities have shown weak performance.

The 2013 Academic Ranking of World Universities (ARWU) lists only three universities for Ireland, with best performer, TCD ranked in 201-300th place in the world. UCD and UCC rank in 301-400th places. On that, Ireland’s presence in top 500 universities as ranked by ARWU runs dry.

QS rankings list eight Irish universities in top 600 in the world, with TCD ranked the highest in 61st place. Second-best, UCD ranks 139th. Only six Irish universities make it into world’s top 300. Back in 2009, we had two universities in top 100, and seven in top 300.

Absurd centralization of education and research policies, coupled with budgetary pressures, centralized and politicized research and teaching funding allocations have accelerate the rate of brain drain from top Irish academic institutions in recent years. This, in part, is the driver for poor ranking performance over the recent years. However, even in 2005-2007, with cash abundant, Irish universities performance was far from stellar.

INSERT TABLE HERE

Meanwhile, across the rest of the higher education sector, both teaching and research remained stuck somewhere in the antediluvian age.

Instead of development of modern, research-capable and skills-based adjunct and clinical faculties, majority of our degrees programmes continue to operate on the basis of full-time faculty teaching out of a textbook and into a pre-set, standardized exam. Furthermore, programmes are often staffed with faculty members who are neither research active, nor have any appreciable experience in applied work relating to their teaching.

While top universities around the world are aggressively moving to new teaching platforms and broadening their programmes by erasing the boundaries between various degrees, in Ireland we still treat a slide projector as a technological enabler. Web-based apps, audio-visual tools, data visualisation and other core tech supports are virtually unheard of in even top-ranked Irish universities.

In many university classrooms, students are more technologically enabled than their lecturers.

Absent deployment of modern strategies and technologies, Ireland embraced the three-year degree system. If anything, lack of proper progression in developing teaching skills and tools should have led to a lengthening of the degree programme to maintain fixed quality of the graduates. Instead we opted to trade down the learning curve in pursuit of higher put-through numbers.

All of this stands contrasted by the fact that in our flagship universities there are some individual teaching and research programmes which operate at a world-class level. Irish academia, it appears, can do excellence, just not across the whole system.


On the research side, things are not stacking up in favour of our education being the enabler of Knowledge Ireland either. New Morning IP, the intellectual capital consultancy firm, publishes regular data on patenting activity by indigenous Irish companies, foreign inventors and Irish academic institutions.

Over the last 12 months, 2,580 patents were filed in Ireland by all types of academic institutions and private sector firms. Irish academic institutions accounted for only 9.1% of these filings. Irish private sector firms are considered to be relative underperformers in terms of R&D output compared to their counterparts across the OECD. Yet, of all patent filings, these firms account for almost four times more patents than all Ireland-based academic institutions taken together.

INSERT CHART

Not surprisingly, the European Patent Office data for 2012 put Ireland in 26th place in terms of total number of patent applications and in per-capita indigenous innovation terms, right between such powerhouses of the ‘knowledge economy’ like New Zealand and Cyprus.

The above data correlates with the poor performance by the country academic institutions in attracting private sector research funding. In August, a study by the Times Higher Education, ranked Ireland at the bottom of global league table in terms of private sector funding per academic researcher. Lower rankings for Ireland can be in part explained by poor innovation uptake by many domestic enterprises. However, these rankings also show that our system of higher education is inefficient in producing market-relevant research. Given the importance of such research to teaching and training future cohorts of human capital-rich workers, this is not a good thing.


Irish system of higher education requires serious and immediate reforms.

At the top, we need more flexible, more responsive public policy formation capable of supporting knowledge-intensive, skills-rich and rapidly evolving education. Fields of research and teaching, such as biotech, stem cells research, content-based ICT, remote medicine, human interface technology, customizable design and development technologies and so on all require a mix of skills we currently struggle to provide. Outside these, the world of business and the overall socio-economic make up is changing rapidly. In previous decades, generic management degrees offered a good starting point for on-the-job-learning. Today we need both specialist knowledge and general human capital as the basis for entering management areas of work. In the past, specialism was the differentiator into growth areas in the economy. Today, encyclopedism and ability to cross boundaries of defined degrees is increasingly a valued skill.

Policy level changes require introducing accountability and direct incentives into education system. Introduction of university-set fees are the starting point for this. Yet, even more institutional autonomy will be required to move to a system of higher education where both success and failure are reflected in actual outcomes. Successful institutions should be incentivised to thrive. Poorly functioning ones should be forced to shut down or be acquired by successful ones. Public funding should follow quality of teaching and research, not political considerations of which constituency is next in line for grants.

We must end political remit over the system of academic research and higher education. The best way to do so is by allowing more competition, imposing tighter quality controls and allowing institutions more freedom to price their offers reflective of both demand for and supply of quality.




Tuesday, April 30, 2013

30/4/2013: Why not in Ireland?..

Bloomberg has an excellent report on MIT pairing up with Russia's Skolkovo on research, education and commercialisation:

Key stats of interest: "There were 83 international branch campuses of U.S. universities as of March, not including partnerships such as MIT and Skolkovo’s, according to GlobalHigherEd.org, a website run by researchers at the State University of New York at Albany. That number has climbed from 10 in 1990, says Jason Lane, a SUNY Albany professor."

Ok, how many are in Ireland - the country with self-professed 'best educated workforce' and focused on building 'knowledge economy' self-dubbed 'innovation island', where we are so solemnly focused on exports (yes, education is exportable and it is a very high value-adding export too)? Answer: none.

There's an MIT campus in Portugal (hardly a shining light in 'knowledge economics'), there are educational 'hubs' all over the world (http://www.globalhighered.org/edhubs.php) and campuses all around the globe (http://www.globalhighered.org/branchcampuses.php). We even have 5 Irish institutions' campuses outside Ireland (though I seem to think UCD and TCD have either plans or actual campuses too, though they are not on the list), but when it comes to the closed shop market inside Ireland, there are no top-league unis from the US trading from the Emerald Isle into Europe and beyond.

Check out this map with locations and spot Ireland... http://www.globalhighered.org/maps.php

Why?.. We have lavish facilities for some ITs built around the country with little reason or rationale for their existence. Why not convert one of them into a JV with, say, Stanford? Princeton? Hell, University of Arkansas would be an improvement... Ah, I hear the Unis dons say, competition is good when it is regulated (aka, stacked in incumbents' favour), but in the age of economic crisis, why not get universities to start really competing for exports by giving them a worthy competitor here, targeting markets outside Ireland?

Thursday, June 7, 2012

7/6/2012: QNHS Q1 2012: Sectoral Decomposition


In the previous post I covered the top-of-the-line data on QNHS for Q1 2012. This time, lets take a look at some sub-trends by occupation and public v private sector numbers.

A handy summary table to outline changes by occupation:


Few surprises in the above table are:

  • Twin (q/q and y/y) rises in Wholesale & Retail Trade category, 
  • Y/y rise in Accommodation and food service activities with a level increase of 8,600. This appears to confirm the Government claims on the sectoral jobs creation on the foot of jobs stimulus. The problem with comparatives is that the y/y increase comes on foot of a sudden decline in employment in the sub-sector in Q1 2011 when it fell to surprisingly low, seasonally-unjustified level of 102,900. Sub-sector employment remains down on Q1 2010 when it stood at 123,700 or 12,100 ahead of Q1 2012, and it is down on Q4 2011 when it was at 113,400 against Q1 2012 at 111,600. The core factor in Q1 2012 differential on Q1 2011 might have been not so much jobs creation as the increased expense of jobs reductions under Budget 2012. This, however, is speculative argument at best. My suggestion would be to wait and see how the numbers employed in the sector pan out in Q2 2012.
  • Another surprising thing is that in the category of skills closely aligned with Accommodation and food service activities there was a decrease, not an increase, y/y in terms of employment. Caring, leisure and other service category of workers saw employment drop from 142,300 in Q1 2011 to 141,500 in Q1 2012. Something is not adding up, unless the jobs created in the sub-sector were managerial and/or associate professional and technical.
  • Not surprisingly, ICT sub-sector grew employment y/y with 6.81% increase on Q1 2011 - the only private sector sub-sector that posted an increase in jobs on 2007 levels (+5.31%), with only other two sectors adding jobs on 2007 levels being Education (+4.64%) and Human Health and Social Activities (+6.57%).
  • For all the claims of MNCs employment gains, the core sub-sector of Professional, Scientific and Technical Activities has seen employment shrinking, not rising in Q1 2012 relative to Q4 2011 (-0.53%), to Q1 2011 (-7.56%) and on 2007 (-15.44%). Striking feature of these changes is that this sector was the hardest hit in Q1 2012 of all sub-sectors listed by CSO, amidst the robust IDA and Government claims that jobs creation in MNCs is ongoing and that R&D and innovation activities are booming.


In the core series for sub-sectors:
  • There was a recorded rise in Education sub-sector. Employment in education stood at 144,200 in Q1 2012 - up 2.2% (or 3,100) on Q4 2011 and down 2.2% (-3,200) on Q1 2011. Since Q1 2007, employment in the sector grew by 4.64% or +6,400.
  • Employment levels in Health and social work activities fell q/q by 1.96% (-2,000) but are up on Q1 2011 by 1.72% (+4,000). Compared to Q1 2007, Q1 2012 employment in the sector is up 6.57% (+14,600). 
  • The two sectors above represent front-line services in their definition.  Between them, during the austerity period the two sub-sectors added 29,700 new jobs.


And lastly, two charts on dependencies ratios. Without any comment.


7/6/2012: QNHS Q1 2012: First results

The latest QNHS results for Q1 2012 are out. Headline readings from CSO release:

  • There was an annual decrease in employment of 1.0% or 18,100 in the year to the first quarter of 2012, bringing total employment to 1,786,100. 
  • This compares with an annual decrease in employment of 0.8% in the previous quarter and a decrease of 2.9% in the year to Q1 2011.
  • On a seasonally adjusted basis, employment fell by 7,300 (-0.4%) in the quarter. This follows on from a seasonally adjusted increase in employment of 11,100 (+0.6%) in Q4 2011.
  • Unemployment increased by 13,300 (+4.5%) in the year to Q1 2012. This brings the total number of persons unemployed to 309,000 with male unemployment increasing by 3,600 (+1.8%) to 205,400 and female unemployment increasing by 9,800 (+10.4%) to 103,600.
  • The long-term unemployment rate increased from 7.8% to 8.9% over the year to Q1 2012. Long-term unemployment accounted for 60.6% of total unemployment in Q1 2012 compared with 55.1% a year earlier and 40.9% in the first quarter of 2010.
  • The seasonally adjusted unemployment rate increased from 14.5% to 14.8% over the quarter.
  • The total number of persons in the labour force in the first quarter of 2012 was 2,095,100, representing a decrease of 4,800 (-0.2%) over the year. This compares with an annual labour force decrease of 32,800 (-1.5%) in Q1 2011.
We have the above data to offset the incessant chatter from the Government about stabilizing unemployment and jobs creation. The success of the Irish State unemployment activation programmes and training schemes is clearly some time off, despite more than a year of current policies and the build-up of similar activation efforts under the previous Government.

Now to more detailed analysis. This post will focus on top-of-the-line numbers and subsequent posts will look at sectoral breakdown and other details.

Labor force participation has fallen to 2,107,800 in Q1 2012, down from 2,113,400 in Q4 2011 and down on the peak of 2,251,400 in Q1 2008. The annual rate of decline of 0.3% in Q1 2012 is shallower than Q1 2010-2011 rate of -1.6% and Q1 2009-2010 rate of -2.6%. Which is good news, kind of.


Numbers of those not in the labor force rose to 1,390,500 in Q1 2012 up from 1,389,600 in Q4 2011 - a shallow hike. Year on year, the rise was 0.2%, much more mild than 1.75% hike in Q1 2010-2011 and 2.94% rise in Q1 2009-2010. Again, sort of good news.

Numbers in employment fell to 1,800,300 in Q1 2012 from 1,807,600 in Q4 2011. (See breakdown of full v part time employment below). Again, the anual rate of change trend is toward shallower declines. In Q1 2011-2012 the rate of decline was 1.0%, against -2.85% in Q1 2010-2011 and -5.46% in Q1 2009-2010. At the peak, there were 2,140,600 in employment, now the number is down 340,300.


Overall number of unemployed rose from 307,300 in Q4 2011 to 312,800 in Q1 2012. At the lowest point in recent history we had 94,200 unemployed. Unemployed counts rose 4.6% y/y in Q1 2012, compared to growth of 8.13% in Q1 2011 and 24.54% in Q1 2010.


Both full-time and part-time unemployment levels shrunk in Q1 2012. Full-time employment is down to 1,383,500 in Q1 2012 from 1,385,000 in Q4 2011, while part-time employment is down to 417,900 in Q1 2012 from 422,300 in Q4 2011. Y/y full-time employment is down 0.6% compared to Q1 2011 y/y decline of 4.47% and Q1 2010 y/y drop of 7.25%. Part-time employment is down 2.1% in Q1 2012, against a rise of 3.24% in Q1 2011 and a rise of 1.847% in Q1 2010.


Unemployment rate has now reached its crisis-period peak of 14.8, more than erasing the slight moderation achieved in Q3 2011 to Q4 2011 (drop from 14.6% to 14.5%). A year ago, just as the new Government came to power, the unemployment rate stood at 14.1%. Of course, the previous Government has presided over much more dramatic rise in unemployment rates. In addition, economic conditions that the current Government has inherited clearly do not warrant much of optimism, especially in such sticky series as unemployment. Thus, the current numbers are not the matter for a blame game.


Participation rate has remained flat at 60.3% in Q1 2012, same as in Q4 2011, but is down from 60.4% in Q1 2011. At the peak we had participation rate of 64.1%.

The above has meant that our dependency ratios worsened in Q1 2012. Ratio of those employed to the rest of the working age population has fallen from 65.35% in Q4 2011 to 65.22% in Q1 2012. In Q1 2011 this ratio stood at 65.80% and in Q1 2010 it was 70.90%. At the beginning of the crisis the ratio was 98.80%. In other words, the proportion of those working in the economy is declining.

Summary of headline stats: