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Economic Data

Dáil Éireann Debate, Thursday - 10 February 2022

Thursday, 10 February 2022

Questions (199)

Bernard Durkan

Question:

199. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs created and retained in the services sectors over the past three years to date; if particular trends have emerged; and if he will make a statement on the matter. [7330/22]

View answer

Written answers

For the three-year period from Q3 2018 until Q3 2021, employment in the services sector has increased from 1.725 million in 2018 to 1.906 million in 2021. This represents an increase of 10.5% or 181,000 jobs over the three-year period. The services sector now accounts for 77.1% of total employment in the country.

Table 1: Persons aged 15-89 years in Employment, Q3 2018 – Q3 2021

2018Q3

2019Q3

2020Q3

2021Q3

Percentage Growth Q3 2018 - Q3 2021

Job Growth Q3 2018 - Q3 2021

All NACE economic sectors

2,268,900

2,323,400

2,250,000

2,471,200

8.9%

202,300

Agriculture, forestry and fishing (A)

104,500

99,300

98,300

107,000

2.4%

2,500

Construction (F)

146,500

149,800

133,700

146,300

- 0.1%

- 200

Wholesale and retail trade, repair of motor vehicles and motorcycles (G)

300,800

300,900

302,300

310,800

3.3%

10,000

Transportation and storage (H)

101,100

103,700

100,100

108,700

7.5%

7,600

Accommodation and food service activities (I)

181,200

176,700

137,200

176,700

- 2.5%

- 4,500

Information and communication (J)

124,100

130,800

128,300

147,300

18.7%

23,200

Professional, scientific and technical activities (M)

134,800

132,700

140,600

164,900

22.3%

30,100

Administrative and support service activities (N)

105,200

109,200

92,100

103,100

- 2.0%

- 2,100

Public administration and defence, compulsory social security (O)

103,600

113,900

117,700

124,200

19.9%

20,600

Education (P)

169,800

182,600

182,600

208,300

22.7%

38,500

Human health and social work activities (Q)

281,300

290,800

288,000

306,400

8.9%

25,100

Industry (B to E)

284,600

294,000

298,900

307,100

7.9%

22,500

Industry and Construction (B to F)

431,100

443,800

432,700

453,400

5.2%

22,300

Services (G to U)

1,724,900

1,774,700

1,715,400

1,905,900

10.5%

181,000

Financial, insurance and real estate activities (K,L)

100,800

114,200

123,400

137,900

36.8%

37,100

Other NACE activities (R to U)

122,300

119,200

103,000

117,600

-3.8%

- 4,700

Not stated

8,400

5,600

-

-

-100.0%

- 8,400

Source: Central Statistics Office, Labour Force Survey

The strongest performing services sector during the three-year period was Financial, insurance and real estate with a 36.8% increase or 37,100 additional jobs. The next fastest growing sector was the Education services sector, which increased by 22.7% or 38,500 jobs. The Professional, scientific and technical activities sector increased by 22.3% or 30,100 jobs and the Information and Communication sector increased by 18.7% or 23,200 jobs.

For enterprise agency client companies (i.e., clients of IDA Ireland, Enterprise Ireland and Údarás na Gaeltachta), the latest employment data I can share is for 2020. In the three-year period from 2017 to 2020 employment in Services has grown by 16.4% or 31,881 jobs to reach 225,811 total jobs. The Services sector now accounts for 46.5% of enterprise agency client employment. The agency employment results for all agencies for 2021 will be published by the end of February 2022.

Table 2: Employment in enterprise agency client companies, 2017 - 2020

2017 Total Jobs

2018 Total Jobs

2019 Total Jobs

2020 Total Jobs

% Change 2017-2020

Job Growth 2017-2020

Business Services

35,160

38,092

40,988

42,347

20.4%

7,187

Financial Services

32,099

32,642

34,387

34,402

7.2%

2,303

Information and Communication

109,601

117,697

126,275

131,276

19.8%

21,675

Other Services

17,070

17,690

19,027

17,786

4.2%

716

Total Services

193,930

206,121

220,677

225,811

16.4%

31,881

Source: DETE, Annual Employment Survey

These results show the remarkable resilience of our services industries despite the severe challenges brought by the pandemic.

As the Deputy will be aware, the Economic Recovery Plan, published last June, sets an ambitious target to exceed pre-crisis employment levels by having 2.5 million people in work by 2024 and in more productive and resilient jobs. The Plan sets out the Government’s commitment to create the right environment for a jobs-led recovery by helping business become more resilient and agile and by supporting people to transition to new jobs in growing sectors of the economy. The Plan commits to further strengthen Ireland’s Skills Framework and architecture to ensure people are supported to secure and remain in sustainable and quality employment through opportunities to reskill and upskill. Accelerating the provision of training, reskilling and upskilling opportunities and increased activation will be pursued through Pathways to Work 2021-2025.

SMEs account for over two thirds of total employment, and as such a strong focus on indigenous SMEs is critical to a jobs-led recovery. The Economic Recovery Plan sets out a two-pronged recovery approach; a focus on domestic SMEs, whilst leveraging and reinforcing the enormous strength and resilience of the Foreign Direct Investment sector in Ireland and its indispensable contribution to job creation and communities across the country. Under Enterprise Ireland’s Regional Enterprise Development Fund, €115 million is being invested in projects to strengthen regional enterprise in all regions and the IDA Ireland will continue to roll-out its regional property programme under its new Strategy, specifically targeting 400 investments to advance regional development.

The Deputy is also aware of the ambition contained in our new National Development Plan, launched at the start of October 2021, which provides substantial investment in the resilience and dynamism of our enterprises, addressing immediate challenges like the ‘tail’ impacts of Brexit and COVID-19, while also preparing enterprises for the longer-term, including climate change and digitalisation.

The twin decarbonisation and digitalisation transition and associated behavioural changes will profoundly alter the economy. Embracing these transitions will also open up substantial new opportunities for businesses and will support significant job creation. Substantial capital investment under the revised National Development Plan and Ireland’s National Recovery and Resilience Plan (NRRP) under the European Recovery and Resilience Facility, with €915 million in first tranche of funding, will be key enablers of balanced regional development, and supporting the digital and green transition.

The enterprise programmes of Enterprise Ireland and IDA Ireland will continue to strengthen growth and employment potential with a particular focus on balanced regional development and smart specialisation, building competitive and innovative regions and enterprises. This includes funding to back collaborative actions at regional and local level, driven by the Regional Enterprise Plans, aided through the Regional Enterprise Development Fund, the Regional Enterprise Transition Scheme, and leveraging European Regional Development Funding and other strategic investments.

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