Growing economy sparks job skills shortages

Ireland’s improving economy has led to skill shortages in a number of areas, mostly the IT sector along with engineering, science, and health.

According to the 2015 National Skills Bulletin, the labour market improved last year and the unemployment rate fell.

The expert group on future skills needs (EGFSN) which published the bulletin, an overview of employment trends, found that in 2014 employment increased by 1.2% to 61.7% and the unemployment rate declined by 1.8% to 11.3%.

It states the jobless figure as an “annual average” although the current official unemployment rate now stands at 9.7%.

The EGFSN advises the Government on the current and future skills needs of the economy, and on other labour market issues that impact on Ireland’s enterprise and employment growth.

The strongest increase in employment was in skilled trades. The construction sector grew the most, at 13%, followed by the financial and education sectors, at 5% each.

However, employment in the construction sector is still 16% lower than five years ago, while financial sector employment is 5% lower.

According to the report, there is a high turnover rate in some occupations, including care workers, sales workers, general clerks, and what is termed “elementary occupations” like waiters, cleaners, catering assistants, and security workers.

A high turnover among skilled occupations, like IT professionals, was also identified.

The report identified a number of challenges, including a 6,500-person decline in the labour force; the outward migration of 29,200 Irish nationals and high unemployment in certain segments of the market, including people with lower secondary or less education, under 25s and former construction workers.

Welcoming the publication, Damien English, the minister for skills, research and innovation, said: “The Irish labour market is recovering, with most indicators improving during 2014.

“The report shows an increase in employment and a decrease in the number of unemployed, long-term unemployed and underemployed persons.”

The minister said he was delighted to see more jobs being created and, in particular, construction jobs finally increasing.

“This is great news for job seekers. I am delighted, in particular, in the growth in opportunities for skilled tradespeople.”

Mr English said he would urge young people to look seriously at an apprenticeship as a way of learning key skills and building their careers. He said his department intended to develop a range of new apprenticeships with employers to provide increased opportunities for youth.

Una Halligan, the EGFSN chairwoman, said: “The report shows that shortages are intensifying in the previously identified areas such as ICT, engineering, sales/customer care, logistic, health, business and finance, and emerging in new areas such as hospitality and construction.

"With improved job prospects across all sectors of the economy, issues with attracting and retaining staff are emerging in some areas (such as hospitality, care and meat processing)”.

She added: “Looking forward, we need to continue efforts across all relevant policy areas to ensure shortages are addressed adequately.”