ireland workforce profile no.20
ireland workforce profile no.20
march 2010
march 2010
republic of ireland
Workforce Profile
Jean McCarthy
introduction to the republic of ireland United Kingdom
Ireland
About this Workforce Profile Organizations striving to be employers-of-choice in different countries around the world need access to current information about the economic, social, political, and demographic characteristics of the countries where their employees live and work. The Country Profile Series focuses on statistics that can guide decisionmaking at the workplace: workforce highlights, economic highlights, and population highlights. This Country Profile is part of a set of resources about Ireland available on the website of the Global Perspectives Institute: www.bc.edu/agingandwork.
Located in the northwest of the continent of Europe, the Republic of Ireland comprises 70,282 square kilometers,1 approximately five-sixths of the island of Ireland. It is bordered in the northeast by Northern Ireland, a constituent part of the United Kingdom that makes up the remaining part of the island. Surrounded by the waters of the Atlantic Ocean to the northern, western, and southern shores, its history has been shaped by its proximity to the United Kingdom, across the narrow passage of the Irish Sea to the east. After more than seven centuries of British rule, marked by unrest and rebellion, the Republic of Ireland declared its independence from the United Kingdom on December 6th, 1921. In complete contrast to the relative underdevelopment of the economy since independence, with most industrial activity only occurring since the 1960s, the emergence of the ‘Celtic Tiger’ in the 1990s witnessed Ireland as one of the fastest growing open economies in the world. From the late 1980s until the end of the twentieth century, economic growth (GDP) averaged over 5%, while in some years growth was more than 10%.2 This unprecedented growth rate reversed the trends of high unemployment and mass migration, and attracted an influx of migrant workers. The boom was attributed to progressive industrial policy that boosted large scale foreign direct investment (FDI), low corporation tax, greater access to third level education, and social partnership between the government and trade unions. The drivers of 21st century expansion were primarily construction and consumer spending. From 2003 to early 2007, the Irish economy continued to expand at a steady 3-6% per annum.2 The roar of the ‘Celtic Tiger’ weakened when the country fell into recession in the wake of the global financial crisis of 2008. In 2009, the Irish economy experienced high unemployment, deflation, and a widening government budget deficit. A slow and gradual recovery is expected to begin in 2011 after contracting for the third consecutive year in 2010.2
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labor force highlights
ireland workforce profile no.20
àà 62.5% of the population is in the Irish labor force.3 The total number of persons in the labor force in December 2009 was 2,202,300, representing a decrease of 64,300 compared with December 2008.3
march 2010
Figure 2. Employment Rate by Gender, Ireland and Comparable Regional Nations, 2007 80.0
77.4
80%
68.1
70%
Male
74.7 66.3
63.2
60.3
60%
àà The economically active population in Ireland is projected to increase from 2,280,000 in 2009 to 2,574,000 in 2020.4 The ‘economically active population’ comprises all persons of either sex who furnish the supply of labor for the production of goods and services during a specified time reference period.
78.4
68.6
Female
59.4
50% All EU states had higher male than female employment rates in 2007. Ireland’s female employment rate was 60.3%, while male employment was 77.4%.
àà The unemployment rate was 12.7% in December 2009. The male unemployment rate was 15.6%, while the female unemployment rate was 9.1%. Long-term unemployment currently stands at 3.2%.3
40% 30% 20% 10% 0%
àà 20.3% of the population is employed on a part-time basis, which is high compared with other countries. EU27 part-time working averages at 18.2% of the population, while the OECD country average is 15.4%.5
Ireland
Netherlands
United Kingdom
Germany
France
Source: OECD, 20095
àà 16.8% of the population reported being self-employed.5
Figure 3. Employment Rates within Age Group, Selected Regional Comparisons, 2007
100% Figure 1a. Employed as Percent of Total Population – Ireland , 1999-2009
70% 67.1
65%
64.5
65.2
65.0
64.9
68.2
69.0
68.1
65.4
62.5
Ireland enjoyed growth in employment rates during the ‘Celtic Tiger’ era. Since the economic downturn, the employment rate has dropped back to the 1999 level.
62.5
60%
2007 employment rates for persons aged 55-64 were higher in Ireland, at 54.1%, and the UK, at 57.4%, compared with other European countries. For example, France’s employment rate for older workers was 38.3%
78.8
80%
81.3
82.1
80.3
25-54 55-64
65.4
60%
54.1
48.8
57.4
55.9 50.1
51.3
45.9
38.3
40%
30.1
20%
55% 50%
15-24 83.6
0%
Ireland
Netherlands
United Kingdom
Source: OECD, 20095
Germany
France
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Figure 4. Average Age of Exit from the Labor Force by Gender, Ireland and Comparable Regional Nations, 2007
Source: CSO, 20096
70
Figure 1b. Employed as Percent of Total Population - Selected Countries, 2007 Ireland
76.0
The Netherlands 71.5
United Kingdom Germany
While employment has dropped since 2008 given the current economic environment, comparable figures were only available for 2007.
69.4 64.6
France
65.4
EU27 50%
In 2007, Ireland’s overall employment rate of 69% was higher than the average EU27 rate of 65.4%.
69.0
55%
60%
65%
70%
75%
The average age of exit from the labor force in 2007 was 64.1 years in Ireland, the joint second highest age among EU 27 countries (along with Bulgaria). The average exit age in Ireland for women was 64.7 years compared with 63.5 years for men. In 2007, the average exit age from the labour force in the EU 27 was 61.2 years.
65
Total 64.1
64.7 63.5
Male 63.9 64.2 63.6
63.6 62.6
61.7
62.0
62.6
60
Female
61.9
61.5
61.2 59.4
59.5
60.5
59.4
55 50
Ireland
80%
Netherlands
United Kingdom
Germany
France
EU27
Source: CSO, 20096 Source: CSO, 20096
2
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Figure 5a. Current & Projected Economically Active Population Estimates and Projections in Ireland, within age groups, 2009 & 2020
100%
2009 86.0 85.3 84.4 84.6
80%
75.8 76.7
81.9 82.5
81.9 82.5 80.8
83.7 76.1
2020
78.4 64.9
68.5
60% 47.1
The economically active population aged 45 and over is projected to increase between 2009 and 2020 in Ireland.
ireland workforce profile no.20 march 2010
economic highlights àà Gross Domestic Product per capita in the Republic of Ireland is $45,027.5 àà From the 1990s until early 2007, Ireland was the fastest growing economy in the world, with unprecedented growth rates averaging 5% per annum.7 As a result of the current recession, economic growth is expected to contract for the third consecutive year in 2010, before a gradual recovery begins in 2011.2
50.3
40% 26.9 26.9
Figure 6. GDP Growth, regional comparisons, 1992-2010
20%
2020 Male
1.8
2009 Female
1.6
2009 Male
1.8
22.3
31.7
6%
United Kingdom
4%
Netherlands
2010
2008
2009
2007
2006
2005
2004
-2%
2003
0%
2001
2%
This economic boom earned Ireland the nickname of ‘Celtic Tiger.’
2002
20-44
Germany
2000
16.2
8%
1998
25.4
France
1999
1.7
10%
1996
2020 Female
Under 20
Ireland
1997
Figure 5b. Current & Projected Economically Active Population as % of Total Population in Ireland by Gender, 2009 & 2020
12%
1995
Source: ILO, 20104
From the 1990s until early 2007, Ireland was the fastest growing economy in the world, with unprecedented growth rates averaging 5% each year, and even reaching double-digits
1994
65+
1993
20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64
15-19
1992
0%
9.0 9.9
-4%
45+
-6%
0%
13.3
28.5 36.2
10%
20%
-8%
19.5
30%
40%
50%
Source: IMF,20097
60%
Source: ILO, 20104
Figure 7. General Government Consolidated Debt as Percentage of GDP, selected regional countries, 2008 80%
Ireland France
70%
General government consolidated debt in Ireland increased greatly from 35% of GDP in 2007 to 43.2% of GDP in 2008.
Germany United Kingdom
60%
Netherlands 50%
EU16
40% 30% 20%
2004
2005
2006
2007
2008
Source: CSO, 20096
4
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demographic highlights
ireland workforce profile no.20
àà The population of Ireland currently stands at 4,459,300.3
àà The age structure of the Irish population is different to most other countries in the EU and the demographic situation is very favourable over the medium term. Ireland’s peak population age group is about 10-15 years younger than in the EU 27. However, by 2050, Ireland’s population structure will be quite similar to the rest of Europe. (See Figures 10a-10c and Figures 11a-11c.)
march 2010
àà 87% of the Irish population is white Irish, while 6.9% is of other white heritage, 0.97% African, and 0.4% Chinese.8
Figure 10a. Population Distribution of Ireland, 2010
àà Total Fertility Rate (TFR), which indicates the average number of children per woman, is currently at 1.9 in Ireland. It is projected to remain at this level up to 2041.9
Male
àà Approximately 11% of the Irish population is aged 65 and over. Projections forecast that 20-25% of the population will be aged over 65 in 2041. The number of oldest persons (aged 80 and over) is projected to quadruple from 110,000 to 440,000 by 2041.9
Figure 8. Median Age, by Gender, Regional Comparisons, 2009 39.4 40.9 38.0
France
Total Female
43.8 45.2 42.6
Germany
Male
35.0 35.7 34.2
Ireland
The median age of the population of Ireland is 35, which is lower than other European countries.
40.4 41.2 39.6 40.2 41.3 39.1
Netherlands United Kingdom
0
10
20
30
40
10%
8%
2%
4%
6%
79.3 82.4 76.3
Germany
Male
Female Male
79.4 82.1 76.8 79.0 81.6 76.5
Netherlands United Kingdom
0
20
40
60
80
6%
10%
8%
Female
100+ 95-99 90-94 85-89 80+ 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4
Total
78.2 81.1 75.6
Ireland
4%
Figure 10b. Population Distribution of United Kingdom, 2010
Figure 9. Life Expectancy at Birth, Regional Comparisons, 2009 81.0 84.3
2%
% of Population
50
77.8
0% 0%
Source: US Census Bureau11
Source: CIA, 201010
France
Female
100+ 95-99 90-94 85-89 80+ 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4
The life expectancy at birth for the Irish population in 2009 was approximately 76 years for men and approximately 82 years for women. 10%
8%
6%
4%
2%
0% 0%
2%
4%
6%
8%
10%
% of Population Source: US Census Bureau11
100
Source: CIA, 201010
6
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Figure 10c. Population Distribution of France, 2010
ireland workforce profile no.20
Figure 11b. Population Distribution of United Kingdom, 2050
march 2010
Source: US Census Bureau11
Source: US Census Bureau11
Figure 11a. Population Distribution of Ireland, 2050
Figure 11c. Population Distribution of France, 2050
Source: US Census Bureau11
Source: US Census Bureau11
8
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references
ireland workforce profile no.20
about the institute Established in 2007 by the Sloan Center on Aging & Work at Boston College, the Global Perspectives Institute is an international collaboration of scholars and employers committed to the expansion of the quality of employment available to the 21st century multi-generational workforce in countries around the world.
1
Government of Ireland. (2009). Geography of Ireland. Retrieved November 2nd, 2009, from: http://www.gov. ie/en/essays/geography.html
2
International Monetary Fund (IMF). (2009). Ireland Country Information. Retrieved January 5th, 2010, from: http://www.imf.org/external/country/irl/index.htm
3
Central Statistics Office Ireland (CSO). (2009). Quarterly National Household Survey. December 2009 Retrieved January 7th, 2010, from: http://www.cso.ie/releasespublications/documents/labour_market/current/qnhs.pdf
The Global Perspectives Institute focuses on innovative and promising practices that might be adopted by employers and policy-makers.
4
ILO. (2010). Laborsta. Retrieved January 6th, 2010, from: http://laborsta.ilo.org/STP/guest#BB437
The Institute’s research, publications, and international forums contribute to:
5
OECD. (2009). Stat. Extracts. Retrieved January 4th, 2010, from: http://stats.oecd.org/Index. aspx?DatasetCode=CSP2009
6
Central Statistics Office Ireland (CSO). (2009). Measuring Ireland’s Progress 2008. Retrieved November 12th, 2009, from: http://www.cso.ie/releasespublications/measuringirelandsprogress2008.htm
7
International Monetary Fund (IMF). (2009). World Economic Outlook Database. Retrieved January 5th, 2010, from: http://www.imf.org/external/pubs/ft/weo/2009/02/weodata/index.aspx
8
Central Statistics Office Ireland (CSO). (2007). Census 2006 – Principal Demographic Results. Retrieved October 9th, 2009, from: http://www.cso.ie/census/census2006results/volume_5/Table_of_Contents.pdf
9
Central Statistics Office Ireland (CSO). (2009). Population and Labour Force Projections 2011-2041. Retrieved December 9ty, 2009, from: http://www.cso.ie/releasespublications/po_lab_project.htm
10
Central Intelligence Agency (CIA). (2010). The World Factbook 2009. Retrieved December 15th, 2009, from: https://www.cia.gov/library/publications/the-world-factbook/geos/ei.html
11
U.S. Census Bureau. (2010). International Database. Retrieved January 10th, 2010, from: http://www.census. gov/ipc/www/idb/country.php
march 2010
Country Context Team Leaders àà
a deeper understanding of the employment experiences and career aspirations of employees of different ages who work in countries around the world;
Tay K. McNamara, Director of Research, Sloan Center on Aging and Work
àà
informed decision making by employers who want to be employers-of-choice in different countries; and
Jungui Lee, Postdoctoral researcher, Sloan Center on Aging and Work
àà
innovative thinking about private-public partnerships that promote sustainable, high-quality employment.
Marcie Pitt-Catsouphes, Director, Sloan Center on Aging and Work
The Sloan Center on Aging & Work at Boston College promotes quality of employment as an imperative for the 21st century multi-generational workforce. We integrate evidence from research with insights from workplace experiences to inform innovative organizational decision making. Collaborating with business leaders and scholars in a multi-disciplinary dialogue, the Center develops the next generation of knowledge and talent management. The Sloan Center on Aging & Work is grateful for the continued support of the Alfred P. Sloan Foundation.
Jean McCarthy is a doctoral student and part-time lecturer in the Department of Personnel and Employment Relations at the University of Limerick, Limerick, Ireland. Her area of research is focused on understanding organisational decision-maker attitudes toward older workers. She also has strong research interests in a role theoretical analysis of ageist attitudes.
10
http://www.bc.edu/agingandwork
[email protected] 11
For additional Sloan Center publications, visit our website at www.bc.edu/agingandwork Global Statistical Profile 01 - Japan Global Statistical Profile 02 - United States Global Statistical Profile 03 - Pakistan Global Statistical Profile 04 - South Korea Global Statistical Profile 05 - China Global Statistical Profile 06 - Greece Global Statistical Profile 07 - Armenia Global Statistical Profile 08 - Italy Global Statistical Profile 09 - Singapore Global Statistical Profile 10 - Denmark
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Global Statistical Profile 11 - South Africa Global Statistical Profile 12 - India Global Statistical Profile 13 - Kenya Global Statistical Profile 14 - Australia Global Statistical Profile 15 - Germany Global Statistical Profile 16 - France Global Statistical Profile 17 - Sweden Global Statistical Profile 18 - United Kingdom Global Statistical Profile 19 - Spain
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