RECRUITMENT: Good signs for job creation

All indications are that 2015 will be a good year for the recruitment sector in Ireland. There is an air of confidence in the sector the like of which has not been seen for many years.

The optimism is fuelled by the fact that more firms in more sectors are planning to increase employment next year. With more employers planning to hire more people growth in the first quarter of 2015 is confidently predicted.

More existing employees are showing up in surveys as ready to change job. Around half of Irish employees surveyed by one recruitment firm said they would consider a job change next year in search of better terms and conditions elsewhere. There will be more permanent jobs and more contract work available throughout the economy.

The good news around economic growth was tempered slightly last week by the latest CSO quarterly survey. This showed that in the third quarter of 2014 gross domestic product growth was just 0.1%, effectively flat. Gross national product, which mostly takes away the profits of multinational companies, grew by 0.5% . Nevertheless there is no disputing the fact that post bailout the Irish economic renaissance is translating into more jobs.

The Irish annual growth rate in the third quarter slowed to 3.5% , down from 7.7% in the second quarter and 5.5% in the first half of 2014. In European terms - from a low base after the prolonged downturn - our growth this year has been spectacular.

The effects are being felt at all levels of the jobs market. The unemployment rate in Ireland decreased to 10.70% in November from 10.90% in October. From 1983 to 2014 the average unemployment rate in this country has been 10.97% . In December of 1985 it hit an all time high of 17.30% and there was a record low of 3.70% in January of 2001.

In Cork the number on the dole has dropped by 11% to 4,298. There are now 34,151 people signing on in Cork city and county. In July of 2011 this figure reached 47,357.

The high level of confidence among business in Cork shown up in the latest economic survey is reflected in a recruitment sector which is witnessing more and more shared service companies coming to the southern capital. There is an increase in permanent recruitment, more multi-national jobs activity and an increase in demand in specific areas like IT, finance, engineering and science.

The Cork Chamber’s third quarter economic trends survey for 2014 showed the highest level of confidence (92.2%) since the survey was first taken in the first quarter of 2009 when confidence levels were recorded at a mere 51.5%.

The survey, which incorporates responses from sole traders, micro-enterprises, SMEs and MNCs from manufacturing and wholesale/retail to ICT and financial, professional and technical services reveals increases in turnover and net profits to be amongst the likely positive indicators driving high confidence levels.

More businesses reported an increase in turnover and 57% reported an increase in net profits. More than half the businesses surveyed anticipate an increase in turnover for the next quarter.

In Cork 40% of businesses surveyed reported increases in employee numbers in the third quarter and 40% anticipated further increases in the final quarter of 2014.

The picture is not entirely rosey. Many people are still looking for work, any work.

Cork Chamber has recently reported that working capital is an ongoing issue for more than a quarter of businesses surveyed and access to credit remains a problem for nearly 20%.

Almost 28,000 people applied for clerical officer positions in the civil service (these are relatively low paid jobs) and 24,000 have applied to join the gardai.

Nonetheless there is a turnaround apparent on the jobs scene in Ireland.

Growing numbers of employers added to their workforces in 2014 and this welcome trend is set to continue in 2015.

There is a growing expectation around more job opportunities in the construction sector next year. Optimism among employers in the hotels and restaurant sectors has also improved sharply.

One national recruitment survey showed that in the construction sector, which felt the brunt of the collapse, 81% of businesses increased employment this year.

The optimism around sectors like pharmaceuticals and IT points to a continued growth in demand for recruitment services. Banking legal and accountancy sectors are all recruiting again. IT in particularly is experiencing a notable skills shortage and there is a growing pressure to attract and retain talent in many sectors.

Salary increases of from 2%-5% are expected on average across all sectors in the coming year and up to 10% in information technology.

In 2007 there were 2.15 million people employed in Ireland. We still remain a long way short of that figure. The latest figures show 1.93 million at work here. What is significant is that this number grew in 2014. It will most definitely move upwards again in 2015.

One survey showed that in construction, 81% of firms increased jobs this year