JOBS OVERVIEW: Real jobs growth adds meat to the Irish recovery story

The jobless rate has inched below the 11% for the first time since 2009 and more significantly, the numbers at work are up 27,700 in the year to March. 

Employment in Ireland now stands at 1.926 million, the highest since March 2009, though still well below the peak levels at the height of the boom.

These are some of the key findings from the latest Central Statistics Office survey of the labour market.

Where, then, are the new jobs being created — In absolute numbers, the construction and hospitality sectors have emerged as key drivers of recovery.

The picture for retailing is more complicated, with a strong performance in the large urban areas offset by continuing decline in many provincial towns and villages.

Areas such as as ICT and healthcare are continuing to grow at a fast rate, with Dublin, and to a lesser extent, Cork and Galway, acting as focal points for growth.

“Disruptive” social media companies are generating new opportunities for graduates particularly in electronic engineering and computer sciences in this country. To date, the creative arts have yet to play a central part in our technology driven growth revolution, but the Irish film industry is booming on the back of tax incentives while the country also has a small, but thriving animation base.

The main complaint now is about a shortage of production facilities.

BUILDING REBOUND

A recovery in building is vital both as a means of tackling long term unemployment and addressing the growing housing crisis.

If the price of housing, rents included, continues to rise in Dublin, in particular, accessing skilled labour could become a problem.

The Government is planning to create 60,000 extra jobs by 2020, off what is admittedly a very low base following the crash of 2007-9.

numbers in work at the sector have risen by ten thousand since the start of the year.

Right now, there are plenty of people at home to fill the posts coming onstream, but Construction Industry Federation spokesman, Jimmy Healy warns of a likely shortage in key skills due to a fall in the number of apprentices in the sector.

There are openings for project managers, engineers and general operatives/ labourers.

According to the CIF, the numbers entering trades such as electrician, plumbing and carpentry has jumped, but few have been embarking on courses in plastering, bricklaying, painting and decorating.

A revival in housebuilding could prove to be the catalyst. A decision of the Supreme Court to strike down the system of registered agreements could hit returning migrants as the old system of guaranteed pay rates is gone except for those on pre-existing contracts.

Hopes of a housebuilding recovery have been dented by the Central Bank’s promised crackdown on lending to first time buyers.

They will be expected to find a deposit amounting to twenty per cent of the purchase price.

The CIF is concerned that building projects could be put on ice as a result of the squeeze.

The concern is that a measure aimed at preventing overheating in the market could squeeze future housing supply, driving up rents.

That aside, the overall picture for construction remains pretty positive.

Jobs are being created as large civil engineering projects are ramped up and as large manufacturing projects get going.

Bristol Myers Squibb has just announced plans to build a 30,000 sq metre biologics manufacturing plant in Blanchardstown, promising one thousand construction jobs along with 350 to 400 manufacturing jobs when the plant is up and running.

Investment by multinationals continues to be a major driver of growth, with highly skilled positions in construction being created.

FOOD & DRINK — STEADY PROGRESS

Bord Bia has presided over a strong rebound to record level in food and drink exports.

Across the county, food companies are retooling.

The great majority of the new jobs being created are high skill, according to Joe Healy, Head of Policy at Enterprise Ireland.

Today’s plant operatives have to eb highly flexible, he stresses. “It is not a case of switching on and off buttons.”

Healy is keen that food and other such sectors with indigenous companies employ graduates with bthe aim of boosting the capability of these firms. With this in mind, Enterprise Ireland is pushing to build stronger links between industry and third level across the board.

The sector is certainly in a dynamic phase.

Danone Nutricia , for example, have just announced a 180m expansion programme, creating fifty posts in food science, engineering, supply chain and logistics Glanbia’s large new plant near Waterford is close to completion while Kerry Group’s R & D complex near Naas is at an advanced stage.

Demand for places on Agriculture courses is burgeoning ahead of the lifting early in 2015 of the cap on milk production.

There will be plenty of work for agricultural advisors, though Teagasc has warned of severe price pressures on the short term due to global over production.

Food exports have rebounded strongly since 2012 with growth set to continue. Some are getting work in a new generation of craft food firms now opening around the country. Celebrity chef, Richard Corrigan, is among those investing in new facilities in response to a growing demand for wholesome food.

A healthy level of graduate recruitment is expected in 2015, with one half of employers set to increase their recruiting, according to the Association for Higher Education Careers Services.

Relevant work experience is cited by employers as the most important quality in a candidate.

ICT (INFORMATION & COMMUNICATIONS)

The market here is humming. in early November. At the Dublin Web Summit, over one thousand jobs were announced, including more than 300 at Amazon.com which already employs more than 1,400 in Ireland.

Forfas has predicted that there will be almost 45,000 job openings in ICT between 2013 and 2020, in a recent report.

The Higher Education Authority has announced the creation of 1,250 extra college places for would be computer scientists and electronic engineers in an effort to fill some of the gap.

Employment in ICT companies has risen by 30% to around 85,000 in just ten years, while demand for such skills is now pervasive.

A huge area of growth, according to Leo Clancy, head of ICT at the IDA is the so called ‘Internet of things.’ Whereas the internet has focused on communications among people up to now, over the next decade or so, it will be the functions of everyday machines that will be transformed. “It is about making dumb things smart, for example, putting silicon chips into electricity metres.”

The number of ‘Internet of things’ developers is expected to grow from 24,000 globally, to 4.5 million by 2020.

Electronic technicians will be needed to design the networks to transport the data from equipment/ devices to the ‘Cloud’, that is, the new data centres opening around Ireland. Cork boasts a significant hub of activity, the Tyndall Centre, which employs 450 highly qualified people.

Jobs growth areas include software engineering and data analytics.

Leo Clancy points to other growth areas such as cyber security — cyber attacks will increase as the ‘internet of things’ becomes a reality.

Robotics have been around since the 1970s in manufacturing. In 2014, the use of drones for civilian purposes has been highlighted.

Drones are robotic mini helicopters or planes, which are increasingly used for goods delivery.

Cameraman are using drones, which have come down in price, to secure spectacular aerial shots.

Once again, the services of electronic engineers and computer scientists are required for the design of robots and drones.

Many of Ireland’s large manufacturers are investing in industrial automation systems.

Jobs for creative arts graduates in ICT in Ireland have been thinner on the ground. Leo Clancy hopes that this will change.

One Irish firm, Drop, has created a beautifully designed kitchen scales.

What is clear is that the rate of job creation in technology is accelerating. The real issue lies with skilled labour supply, hence the efforts by the government to reduce the top rate of tax from 52% down to 50% by the next Budget.

The concern is that many of these skilled people — including many non Irish — could easily choose to relocate in other jurisdictions.

Maintaining Ireland’s reputation as a ‘cool place’ for young mobile IT people is a critical goal.

Tackling the growing housing crisis is of key importance to the sector which relies so much on young talent.

In Clancy’s view, Irish pay rates in ICT remain competitive.

“We are nothing like as expensive as hot spots such as San Francisco.”

He expects the number of ICT professionals in Ireland to grow by five per cent a year uo to 2018.

Many firms are centralising their EMEA (europe middle East Africa) operations in one or two locations, and Ireland is winning out as a result.

“Dublin and Ireland are seen as fantastic locations.”

Currently, the education system here is meeting 60% of the demand for skills — the goal is to push this to 74% by 2018.

This implies an additional 1,300 graduates. A target of 700 additional work permits in IT has also been set following recent changes in the visa programme.

And not before time. One half employers in the sector state that the skills gap is the major obstacle to growth, according to a GradIreland survey.

Areas such as ICT and healthcare are continuing to grow at a fast rate, with Dublin, and to a lesser extent, Cork and Galway, acting as focal points for growth