Dáil Éireann Debate, Thursday - 7 April 2022
165. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which the services and manufacturing services have improved and recovered given the existence of the pandemic; and if he will make a statement on the matter. [19099/22]
Amharc ar fhreagraAccording to the latest quarterly national accounts data from the Central Statistics Office[1], the Irish economy continued to recover in the final quarter of 2021, with preliminary estimates indicating that GDP in volume terms increased by 13.5% for the year 2021. GNP showed an increase of 11.5% in 2021 over 2020, while the deglobalised measure, Modified Domestic Demand (MDD) increased by 6.5% over the year.
The industrial sector, which is dominated by manufacturing activities, increased by 24% in 2021 compared to the previous year, and activity in this sector is now significantly higher than pre-pandemic. The ‘’modern manufacturing sector’’, which is dominated by pharmaceutical and other MNEs, performed strongly throughout the Pandemic. Meanwhile, production in the ‘’traditional sector’’ is gathering pace and performed solidly in the final quarter of 2021 compared to the previous three months.
The performance and recovery of the services sector in the aftermath of the COVID-19 shock has been more diverse than the manufacturing sector due to the customer facing and labour-intensive nature of certain service sectors. While the Information and Communications sector has performed exceptionally well, other services sectors such as Arts and Entertainment are only beginning their path to full recovery.
The labour market has also shown considerable resilience with the total number of persons in employment in Q4 2021 reaching 2,506,000[2] , compared to 2,276,800 persons in employment in Q4 2020, and 2,357,300 in Q4 2019, before the onset of COVID-19. The total numbers employed in the industrial sector are now 27,800 higher than before the pandemic began, once again highlighting the strength of this sector. Since 2019, total employment in the manufacturing sector in enterprise agency client companies has increased by 5.1%, or 11,534 jobs, to reach 238,038 jobs in 2021.
The outcome for employment in the services sector is more mixed, with the total numbers employed in Professional, Scientific and Technical Activities, and Financial, Insurance and Real Estate Activities higher in the final quarter of 2021 compared to the same quarter in 2019. However, the total numbers in employment were lower in the Accommodation and Food Service Activities sector. During the two year period spanning the pandemic from 2019 to 2021 total employment in the services sector in enterprise agency client companies has increased by 10.8%, or 22,262 jobs, to reach 229,301 in 2021.
Given the heightened global uncertainty surrounding the Russian invasion of Ukraine in February 2022, the ESRI[3] revised slightly downward their forecasts for the Irish economy in 2022, but the outlook still remains positive. The ESRI now expect Irish GDP to increase by 6.2% in 2022 and modified domestic demand to grow 5.0%. The ESRI also anticipate continued improvements in the labour market, with unemployment set to average 6.3% in 2022.
[1] GDP by Sector - CSO - Central Statistics Office
[2] Employment - CSO - Central Statistics Office
[3] Quarterly Economic Commentary, Spring 2022 | ESRI
