Census 2016: Principal Economic Status in the Western Region

The CSO has just issued the second set of summary results from Census 2016.  ‘Census 2016 Summary Results – Part 2’ gives initial results of some of the socio-economic indicators from Census 2016. More detailed results for each theme will be released in ‘Profiles’ between now and December.

The summary results include data on:

  • Principal Economic Status
  • Employment by sector, occupation and nationality
  • Socio-economic groups and social class
  • Education
  • Travel patterns
  • Health, disability and caring

Census 2016 Summary Results – Part 2. Infographic

This initial blog post will examine the Principal Economic Status results and other themes will be analysed in future posts.

What is Principal Economic Status?

Principal Economic Status (PES) measures the economic status e.g. at work, retired, student etc. of the entire population aged 15 years and over.  It is a self-assigned measure in that the person selects the category they believe applies to them. It differs from the ILO definition that is used in the Quarterly National Household Survey (QNHS) and the official employment figures. This difference mainly impacts on the numbers counted as in employment – for the ILO definition, if a person has worked for payment or profit for 1 hour or more in the previous fortnight they are counted as employed. This will result in a higher number being counted as employed than when people are asked to give their own status as in the PES question in the Census.  Therefore the PES data from the Census will not match the official employment statistics for that period. For more see the Appendices to the report.

PES in the Western Region 2016

In the Western Region in 2016 there 653,749 persons aged over 15 years.  Fig. 1 shows their economic status.

Fig. 1: Principal Economic Status of all persons aged 15 years and over in the Western Region, 2016. Source: CSO, 2017, Census 2016 Summary Results – Part 2, Table EZ002 http://www.cso.ie/px/pxeirestat/Statire/SelectVarVal/Define.asp?maintable=EZ002&PLanguage=0

Change in economic status in the Western Region 2011-2016

Just over half (51.1%) the region’s adult population stated that they were ‘at work’ (employed or self-employed) (Fig. 2). This was an increase from 2011 when 48.2% of the region’s adult population was working. Since 2011 there has been a notable decline in the share of the population unemployed (having lost or given up a job) from 11.2% down to 7.4%.

The other category showing considerable change is the number who are retired, rising from 14% up to 16.6%. This is in line with a national trend of an increasing number of retired people, partly driven by rising life expectancy, recent early retirement schemes in the public sector and also the fact that the historical trend of rising female labour force participation is now leading to increasing numbers of women in retirement. Women who are engaged in home duties tend to continue to report themselves as such, even into their older years, whereas women who have participated in the labour force would report themselves as retired when they retire from paid employment. The downward trend in the number of people engaged in home duties continued in this Census, declining from 9.4% to 8% in the region.

There was a slight decline in the share of the population unable to work due to illness or disability (4.6% to 4.4%), while the share of the population (15+ yrs) who are students was exactly the same in 2016 as in 2011, though of course the actual number of students would have changed (it increased by 1.5%).

Fig. 2: Percentage of all persons aged 15 years and over by Principal Economic Status in the Western Region, 2011 and 2016. Source: CSO, 2017, Census 2016 Summary Results – Part 2, Table EZ002 http://www.cso.ie/px/pxeirestat/Statire/SelectVarVal/Define.asp?maintable=EZ002&PLanguage=0

Economic Status in the Western Region by gender

The PES composition of the adult male and female population in the Western Region is shown in Fig. 3.  One of the most notable gender differences is in the share of males and females who are ‘at work’, 55.3% compared with 47%. The trend in the share of women at work has been increasing over time due to rising female labour force participation, however there continues to be a lower share of adult women at work.  Between 2011 and 2016 the number of males at work in the Western Region increased by 8.4% while the number of females only rose by 6.5%. Though it must be taken into account that the decline in the number of males at work during the previous intercensal period was far higher. There is a lower share of women who are unemployed, both having lost a job (5.9% v 9%) and first time jobseekers (0.7% v 0.9%).

As noted above, the ongoing increase in female labour force participation has led to a rising share of women who are retired. The share of all women who are retired (16.1%) is now closer to men (17.1%). Since 2011 there has been a 16.9% increase in the number of retired men in the Western Region but a 23.3% increase in the number of retired women, both increases are quite close to what happened nationally over that period.

Fig. 3: Percentage of males and females aged 15 years and over by Principal Economic Status in the Western Region, 2016. Source: CSO, 2017, Census 2016 Summary Results – Part 2, Table EZ002 http://www.cso.ie/px/pxeirestat/Statire/SelectVarVal/Define.asp?maintable=EZ002&PLanguage=0

The biggest gender difference continues to be in the category ‘Looking after home/family’ with 14.3% of women compared with 1.4% of men with this status.  The ongoing decline in the share of women engaged in home duties continued in this period with a 15.1% decline in the Western Region since 2011, higher than the 11.5% decline that occurred nationally.  There was some growth in the share of men who are on home duties, up 3.3% in the region, though this is considerably less than the 15% growth experienced nationally.  Even though the region had lower growth, the share of men engaged on home duties in the region (1.4%) is greater than in the State (1.0%)

Economic status in the Western Region compared with State

Comparing the PES of the adult population of the Western Region with the State average (Fig. 4), the main difference is in the share ‘at work’. At 53.4%, the State is higher than the Western Region (51.1%).  The other category where there is a notable difference is retired. In the region, 16.6% of adults are retired, compared with 14.5% in the State. This would be linked to the region’s older age profile. The region also has a slightly higher share of its population unemployed having lost/given up a job and those unable to work due to illness/disability.

Fig. 4: Percentage of all persons aged 15 years and over by Principal Economic Status in the Western Region and State, 2016. Source: CSO, 2017, Census 2016 Summary Results – Part 2, Table EZ002 http://www.cso.ie/px/pxeirestat/Statire/SelectVarVal/Define.asp?maintable=EZ002&PLanguage=0

Economic status in different area types

Details on the economic status of the population by town size is also available. The detailed information for individual towns will be released in future Profiles, but the Summary Results provide details for the five cities (with their suburbs), and then various town size categories and rural areas.

From Table 1 it can be seen that Dublin city and suburbs has the highest share of its population at work (56.1%) while Limerick city has the lowest (47.2%).  Among the five cities, Galway has the second highest share (53.5%).

There is a general pattern that the share of the population at work declines from the larger towns of 10,000+ (53.1%) down to the smaller towns, and then villages (49.4%). It must of course be remembered that these size categories would include towns within the hinterlands of the cities which function as commuter towns. The open countryside (beyond areas of 50 inhabited houses) has a high share of its population at work. This is likely linked to both farming and commuters living in rural houses.

Table 1: Percentage of all persons aged 15 years and over by Principal Economic Status by town size, 2016. Source: CSO, 2017, Census 2016 Summary Results – Part 2, Table EZ014 http://www.cso.ie/px/pxeirestat/Statire/SelectVarVal/Define.asp?maintable=EZ014&PLanguage=0

In terms of unemployment, Cork, Dublin and Galway have the smallest shares of their population unemployed (having lost/left a job), at under 7%, compared with 10% in Waterford. Among towns, the share who are unemployed generally increases as town size declines, though villages and open countryside have lower shares unemployed. This is partly explained by the higher share of retired people. Towns of 1,000-1,499, followed by villages and open countryside, have the highest shares of their population retired at over 16%.

Galway on the other hand has the lowest share of retired among its population (12.2%).  This is mirrored by Galway also having the highest share of students (17.1%), which strongly shows the influence of both NUIG and GMIT on the city. Limerick and Cork have the next highest shares of students again highlighting the importance of their higher education institutions.  The category of towns of 10,000+ would include those which have an Institute of Technology e.g. Sligo, Dundalk, so it does show a higher share than smaller towns but still considerably less than in the cities. When the details for individual towns are released it will be easier to see the impact of individual IoTs.

The share of the population looking after home/family has a quite strong pattern, increasing steadily as town size declines from 10,000+ (8.3%) to open countryside (9.3%).  The share in all cities is below 7.5% and in Galway, again reflecting its young age profile, the share is only 5.5%.  A quite similar pattern can be seen for those unable to work due to illness or disability, which generally increases as town size declines though falls again for villages and open countryside, where it is particularly low. This may be linked to accessibility issues as those with a disability and their families may choose to live in a town or city for easier access to services. The highest rate in the country is in Limerick city, with Galway having the lowest.

Conclusion

This initial look at the PES data from Census 2016 confirms the general trend of improving labour market conditions, with an increase in the share of the adult population who are working and a fall in unemployment.  Increasing life expectancy and the consequence of increasing female labour force participation has also led to a strong growth in the retired population, a trend with clear policy implications.  While there continue to be significant gender differences in terms of economic status, the difference is reducing, though a substantially higher share of women than men are still engaged in home duties.

Compared with the national picture, the region has a lower share at work and higher share who are retired, partly linked to the region’s age profile and weaker labour market.  Future blog posts will examine in detail the Census data on the region’s labour market (labour force participation, employment, industries, occupations and unemployment), to examine what has occurred within the ‘at work’ and ‘unemployed’ groups.

Pauline White

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RSA European Conference: Session on ‘Ensuring Rigorous and Effective Regional Spatial and Economic Strategies’

Last week the Annual European Conference of the Regional Studies Association took place in Dublin.  Hosted jointly by TCD and UCD, the theme was ‘The Great Regional Awakening: New Directions’ or GRAND if you prefer!  From Sunday evening until Wednesday lunchtime, there were a huge number of plenary, parallel, and discuss and debate sessions exploring all aspects of regional studies research – economic, demographic, geographical, sociological, financial – from across Europe and further afield.  The conference was a great opportunity to catch up with current research on regional development. There’ll be a quite a few more blog posts from it all!

‘Ensuring Rigorous and Effective Regional Spatial and Economic Strategies’

This post will focus on one of the ‘Discuss and Debate Sessions’ held on Tuesday 6 June.  Organised by the Eastern & Midland Regional Assembly (EMRA) together with the Northern & Western Regional Assembly (NWRA) and the Southern Regional Assembly (SRA) the session topic was ‘Ensuring Rigorous and Effective Regional Spatial and Economic Strategies’.

The three Regional Assemblies in Ireland have the responsibility to develop new Regional Spatial and Economic Strategies (RSESs) to replace the current Regional Planning Guidelines. The RSESs are intended to translate the National Planning Framework (NPF) to a regional level and provide a ‘… long-term strategic planning and economic framework for the development of the region …’. While background and research work is underway by the three RAs, the delays in the development of the new NPF have held up the process of developing the RSESs.

Following the public consultation on the NPF, a draft NPF document is expected to be issued for public consultation before the Oireachtas summer recess.  A conference taking place today (14 June) titled ‘National Planning Framework, The Future of Urban Planning, Activating Spaces & Developing places’ may provide some additional insight on NPF timelines. Policy Analyst with the WDC, Deirdre Frost will be speaking later today on ‘The National Planning Framework and Regional Inequalities – Can these be addressed?’

As the WDC pointed out in our submission to the NPF consultation, the NPF Issues & Choices consultation paper did not set out very clearly the relationship and respective areas of responsibility of the NPF and RSESs. So this session during the RSA conference was a timely opportunity to discuss the issues.

Presentation from EMRA

The session began with a presentation by Clare Bannon, Senior Executive Planner with the EMRA. In it, she outlined a background paper prepared by them. Some of the key points were:

  • A lot can be learned from the experience of the NSS/RPGs (lack of legislative basis, lack of ‘rural’ element, no mechanism to amend as circumstances changed, economics missing)
  • Land use planning has increasingly evolved into ‘spatial planning’ as it is not seen as sufficient to consider land use alone.
  • Implementation will be the key challenge for RSESs. Capital Plan needs to be aligned with the RSESs.
  • An evidence base is critical. Data gathering is underway, need more analysis (qualitative, environmental), consultation will be part of gathering data. Under NPF process Demographic and Econometric Modelling is underway for the three regions.
  • Economic dimension is a new departure from RPGs. RSESs expected to encourage regional progress, not just in GDP/GVA but also across range of quality of life indicators.
  • The efficiency / equity debate will come into play in term of the location of public resources.
  • Other policy areas (e.g. transport, health) can have a far greater impact on regional performance than planning.

Every two years each Local Authority will be required to submit a report to their Reginal Assembly on progress made in implementing the RSES. Can the RSES be an operational strategy for delivery of regional progress? Do the RSESs need to include an ‘Action Statement’?

Discussion

Following the presentation, a panel gave their initial views: David Meredith, Senior Research Officer, Teagasc; Brendan Williams, Assistant Professor in Planning and Environmental Policy, UCD; Alma Walsh, Planning Advisor, DoHPCLG and Caroline Creamer, Acting Director, International Centre for Local and Regional Development (ICLRD), and then the discussion was opened to the floor.

There was a lot of debate on the issues and challenges surrounding the development of both the RSESs and the NPF, with contributions from a number of people with huge experience of the previous NSS and RPGs process.  The key themes which emerged from the discussions were:

Different places have very differing needs

  • Concept of scale is very important at regional level. There are three very different regions. A town of 10,000 population in the NWRA region means something very different to its hinterland than a town of 10,000 located in the Greater Dublin Area. A town of 10,000 in a rural county can play a similar employment and service provision role for its hinterland, as a city in another area.
  • The three RA areas are very large with many internal differences e.g. the EMRA includes Dublin city centre and Co Longford. RSESs should be developed at sub-region level, as there are very different priorities and issues within each of the three regions.
  • Place-making and place-shaping are critical to achieving regional growth. Identifying the assets of a specific place and developing those.
  • Quality of life is a key factor for the RSESs, including in how they envision the potential of rural areas to contribute to regional growth.
  • Some concern if the role of rural in the RSESs is seen as a ‘solution’ to an urban problem. Rural areas as a housing location for commuting to cities. Rural should not be seen as a ‘spillover’ from the urban, with quality of life the only factor considered for rural areas, rather than seen as sites of employment and production.
  • A town or area does not need to be listed in a Plan in order to grow, a lot of other public, private and community factors come into play.

Regional v Local

  • Policy is deeply rooted in local issues, but planning has now moved to a regional level. Balancing the conflict between local and regional will be a major challenge for RSESs.
  • It is important, especially for NWRA, to take an island of Ireland approach. With Brexit, a lot of spatial issues will have a more complicated cross-border context in future.
  • Needs to be a clear separation of ‘regional issues’ and ‘local issues’. Have to identify from the start what are the regional issues that are best dealt with at a regional level through RSESs.
  • Level of time and resources put into planning at different levels – as much time could be spent on a local area plan as the NPF – what is expected of planning at different levels?

Spatial and Economic

  • Linking economic and spatial is a significant change in the RSESs compared with RPGs.
  • There is a danger of setting up a false dichotomy between ‘spatial’ and ‘economic’. All spatial planning is economic as it is concerned with the location of activity.
  • While it is important to understand the economics of production (where products and services are produced), NPF/RSESs also need to consider the economics of provision (where products and services are provided). The spatial pattern of service provision (and associated employment) is far broader and more spatially spread, than production.

Measurement

  • GDP/GVA is a problematic indicator especially at regional level. Disposable income is a better indicator and there is a narrower regional gap.  Measuring income rather than GDP/GVA shifts the debate to regional potential.
  • How do you measure regional progress? What does society consider to be ‘progress’?  What you measure is what you will get. GDP is not a perfect measure, but needs to be included as it is what the EU uses for regional funds.  But to measure success of RSESs we need to use a set of indicators including quality of life indicators.  RAs intend to use adjusted national income plus a broad set of indicators. Selecting what indicators to use to measure regional progress is the technical side of the equity/efficiency debate.
  • Demographic and Econometric Modelling work being undertaken for NPF will be at national, regional and county level. Will be fundamental to drafting NPF and RSESs.
  • How well is the current evidence base collection resourced? A lot of issues/background papers prepared for NSS.

Implementation

  • Often argued that plans are left on a shelf but need to ask the question, why would anyone (a policymaker) take a plan off the shelf? 1) if they are legally required to; 2) if it is useful to them.  Effectiveness of any spatial plan is down to decisions taken by other policymakers.  This will only happen if the plan is useful to them.  RSESs should provide a strategy to make the case for investment to policymakers.
  • What type of strategic plan do we want? In some countries there is very active/proactive management of the implementation of the plan. Or do we want one that is more aspirational and guidance for policymakers?  NPF/RSESs may need to include a ‘carrot’ to encourage public agencies to take the lead in implementing them.  What should role of Regional Assemblies be in the RSESs implementation?
  • Effective governance is critical to place-based development. What capacity is there at regional level? What is the relationship between local and regional? There is not much appetite to change power structures in Ireland, but the capacity of the structures at regional and local level can be strengthened.
  • The relationships across a lot of policies/plans is not clear, there are a lot of plans at present e.g. Regional Action Plan for Jobs, Action Plan for Rural Development etc, and it needs to be clearer how they relate to each other and to the RSESs.
  • Need to challenge the political acceptance of what is development and how to measure it. In some places e.g. Melbourne, it became the ‘most liveable city’ with no change to its institutions.

Public and community involvement

  • It is important for NPF and RSESs to be clearly understood by public. A lot of communities feel disconnected from planning but face the consequences (negative and positive) of planning decisions every day of their lives. It impacts on quality of life, health and wellbeing, employment, delivery of services etc.
  • More likely to gain public support for NPF/RSESs if they are less ambitious but more achievable. Public will not have buy-in for a plan that is unrealistic and unachievable.  Choosing fewer actions, but ones that can be achieved, will help create public support.
  • What is the capacity in local communities to engage with the NPF and RSESs? The changes in local development structures in Ireland over the past few years, with an increasing role and funding to Local Authorities for rural development, has weakened some traditional local development structures. It cannot be expected that these structures and individuals will have the capacity, or willingness, to now take a lead role in framing or delivering the RSESs. Community organisations may already be struggling to engage with Local Authorities, let alone with regional level also.

Funding

  • NSS had the benefit of being set in the framework of the National Development Plan (NDP), now there are a lot of documents for different sectors but no comprehensive economic plan. Where will the NPF sit?
  • There needs to be alignment between policy (NPF/RSESs) and investment. Where public investment takes place should be aligned with RSESs.
  • Needs to be a focus on what can realistically be delivered by public investment over the period of the RSESs. Public investments tends to be very cyclical, there needs to be long-term assurance that investments will be made to deliver on the NPF/RSESs.  If RSESs too broad and ambitious they will not be able to prioritise and will be less achievable.  RSESs need to include prioritisation.
  • Debate in UK at present on having a much wider qualitative and quantitative Cost-Benefit Analysis (CBA) methodology for investments.
  • There is a wide mix of funding models for investments. Good to have a mix of funding sources for any project, not just public sources.  Cannot have good infrastructure policy in absence of other good policies.

Clearly this ‘Debate and Discuss Session’ could have gone on all day given the scope and importance of developing new strategies for the spatial and economic development of Ireland’s regions out to 2040.  There will be a lot more discussion, debate and consultation on the development of the three RSESs during the rest of 2017, and well into 2018.

Pauline White

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Census 2016: Profiling Age and Dependency

The most recent release from Census 2016 Profile 2 – Population Distribution and Movements contains data on the age categories of the population by county.  Different age groups have different needs and opportunities so this information is important for planning services for the future and understanding social and economic development issues for our region.

Population in key age categories

The key age categories for analysis are shown in Figure 1 for the Western Region, the Rest of State[1] and for the EU28 (in 2015) along with the projected age structure for the EU 28 in 2080.

The Western Region has 21.1% of its population in the 0-14 age group (the same as the Rest of State), while 15.6% of the EU28 population is in that age category.  The county with highest share of young people in its total population in 2016 was Donegal (22.0%) while the lowest were Mayo and Sligo (20.3%).

 

Figure 1: Population Structure by Age Group

Source:  CSO, 2017, Profile 2 – Population Distribution and Movements  E2022  and Eurostat (demo_pjangroup) and (proj_13npms)

 

The category ‘15-64 years’ covers most of the economically active population.  In the Western Region the Galway has the largest proportion in this category (65.6%) but this is still lower than the average for the Rest of State (65.9%).  Leitrim has the lowest proportion in this age category (61.5%).

There is significant variation among counties in the proportion of the population over 65 years, but all counties have more people in this category (between 13.6% in Galway and 17.5% in Mayo) than the Rest of State (13.0%).  Counties, including those such as Mayo, Roscommon and Leitrim which we consider to have high concentrations of older people, have fewer in the older age categories than the EU 28 (18.9%) which is turn is much less than that projected for the EU 28 (28.7%) by 2080.

Population Pyramids

The population pyramid below (Figure 2) shows the age distribution for the Western Region and the Rest of State in more detail.  A peak of births in 1980 shows up in the 35-39 age category, and another peak in the number of births occurred in 2009[2] and shows up in the 5-9 age category.  The smaller numbers in both the 20-24 age category relates to a falling birth rate in that period while the lower number in the 25-29 age categories, and to some extent in the 30-34 are the result of high outward migration.  The difference in proportions in these age categories for the Western Region and Rest of State indicate greater out migration from the Western Region.

 

Figure 2: Population Pyramind for Western Region and Rest of State, 2016

Source:  CSO, 2017, Profile 2 – Population Distribution and Movements  E2022

 

The Western Region has a higher proportion of it population than the Rest of State in each of the age categories from 45 years and upwards for females and 40 years and upwards for males.  This is also the case for the 10-14 and 15-19 years categories but the more recent higher birth rate in other more rapidly growing counties (especially those surrounding Dublin) means there is a higher proportion of young children in the population in the Rest of State than the Western Region, but these differences are relatively small at the moment.

Dependency ratios

The Dependency ratio (Figure 3) shows the number of older and younger people compared to the working age population (which for this statistic is considered to be 15-64) as these are potentially the most economically active.  In reality many in the 15-19 and 20-24 categories will be in education but it is a useful statistic for comparison purposes.

It is also important to be aware of the differences in population structure among regions and counties when examining economic statistics such as those for income and output.  Counties a lower percentage in the economically active age groups have proportionally more dependents.  They will tend to have lower per capita income and output levels even where there is no difference in productivity.

Mayo has the highest old age dependency ratio (28.3%) in the country,  followed by Leitrim (27.4%) and Roscommon (26.8%) while the lowest nationally is in Kildare (15%).  Galway (20.6%) and Clare (23.4%) have the lowest age dependency ratios in the Region but all Western Region counties have a higher age dependency than that for the Rest of State (19.7%).

 

Figure 3: Old Age, Youth and combined Dependency Ratios, 2016

Source:  CSO, 2017, Profile 2 – Population Distribution and Movements  E2022, own calculations

 

The highest youth dependency ratio in the Region is in Donegal (35.3%) and Leitrim (35.1%) but other counties with particularly high birth rates have much higher youth dependency ratios (in Meath it is 39%, Laois 38.3% and Longford 37.2%).  In the Western Region the lowest is in Galway (31.8%) and Sligo (32.0%).  The Western Region as a whole has a youth dependency ratio of 33.2% compared to 32.1% in the Rest of State.

Combining the youth and old age figures gives an overall dependency figure which gives the proportion of both older and younger people compared to the working age population.  In the Western Region this was 57.4% while in the Rest of the State it was 51.8%.  This compared to a figure of 52.6% in the EU 28 in 2015.

The Oldest People

Some of the most significant change is population structure is occurring among the ‘older old’, those in the 80+ years category, with increased longevity and ageing of the older population.  In Roscommon 4.4% of the population is already in this older age category, while Leitrim (4.27%) and Mayo (4.24%) are the next highest in the state. In contrast, in Kildare only 1.91% are in this category while in Meath it is 2.21%.  Some 3.7% of the WR population is over 80 (3.0% in the Rest of State).  It is expected that by 2080 in the EU28 12.3% of the population will be over 80, which compares to 5.3% in the EU28 in 2015.

The percentage in the 80+ years category is rising in all counties and, while increased longevity is a significant human achievement, it can have important implications.  Those in this age group can experience more poverty and social isolation and poorer health that the ‘younger old’[3].  There is also a significant gender dimension with women having higher survivorship and a lower propensity to re-marry which means they are more likely to live alone.  It is important to respond to, and plan for, the needs of this age category and to endeavour to ensure that as many years as possible are lived with as good health and quality of life as possible.

Conclusions

A higher proportion of the Western Region population is in the older and younger age categories than in the Rest of State, in part reflecting the outward migration of those of working age.  It highlights the importance of a focus on regional employment provision as a key element of regional development policies.  Improving employment prospects would benefit those currently in the youth dependent category, as well as those who are already economically active.

The higher proportion of older people in many Western Region counties means that services for older people are crucial.  As much of the Region is very rural we should continue to learn from best practice elsewhere, particularly in Europe, where the ageing of the population is taking place earlier, on how to provide supports and services to an older population in rural areas.

While much of the thinking about ageing populations is on services and supports it should also be remembered that many people in this age category are likely to continue in employment and so this group would also benefit from improved employment opportunities.  Currently, 4.5% of the Western Region labour force is over 65[4], while 13% of those in the 65+ category are in the labour force.  This compares to 2.8% of the rest of State labour force over 65 and a 10% participation rate for that age category.

Understanding trends in population and examining the detail for the seven Western Region counties helps us better understand the economy and society of the Region.  We will continue to provide analysis of the issues as more results are released from the 2016 Census of Population.

 

 

Helen McHenry

[1] Rest of State refers to the 19 counties which are not in the Western Region and is used for comparison rather than using a State figures which also include the Western Region.

[2]http://www.cso.ie/en/media/csoie/releasespublications/documents/population/2017/Chapter_3_Age_and_sex_composition.pdf

[3] Ingham, B., Chirijevskis, A. & Carmichael, F. Pensions Int J (2009) 14: 221.’ Implications of an increasing old-age dependency ratio: The UK and Latvian experiences compared’ doi:10.1057/pm.2009.16 https://link.springer.com/article/10.1057%2Fpm.2009.16

[4] CSO, Quarterly National Household Survey Quarter 1 2016- Special run for the Western Region.  See here for more detail http://www.wdc.ie/wp-content/uploads/WDC-Insights-Presentation-DSP-30.01.2017-final.pdf

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Census 2016: Looking Back 175 Years- Changes in the Western Region Population

The release of information from the Census of Population 2016 provides an interesting opportunity to look back 175 years to the Census of 1841 to see how population in the Western Region has changed.

The 1841 census is considered to be the first modern census in the Great Britain and Ireland (the UK as it was then).  Each householder was required to complete a census schedule which contained the household address and the names, ages, sexes, occupations and places of birth of each individual living at the address.  The process is described here.  That Census, occurring before the devastation of the famine, provides information about a different Western Region.

Of course we know that in 1841 pre famine Ireland was a very different place, yet sometimes it is hard to believe how altered things are.  Leitrim then had a population of 155,297 (it is now 32,044).  Roscommon had more than a quarter of a million people, it now has 64,544 residents.  For those of us who know these counties, it is strange to think about how much more densely they were populated and how little obvious evidence of that population remains.

Population density has of course reduced significantly throughout the Western Region (Table 1).  It had been particularly high in Roscommon (99.52 persons per square kilometre), Sligo (98.44) and Leitrim (97.74) where some of the largest population losses occurred over the next decade.

Table 1: Population Density in the Western Region in 1841 and 2016

1841 persons per sq km 2016  persons per sq km
Clare 83.20 34.52
Galway 71.57 41.96
Leitrim 97.74 20.17
Mayo 69.59 23.35
Roscommon 99.52 25.33
Sligo 98.44 35.67
Donegal 61.00 32.76
Western Region 76.94 31.85
State
96.04
70.05
Source: CSO, 2017, Census 2016 Profile 2 -E2001: Population at Each Census 1841 to 2016 by County, Sex and Census Year and own calculations

 

As is evident from the changes in population density, all of the counties in the Western Region have suffered severe population decline since 1841 as is shown dramatically in the chart below.

Figure 1: Population of the Western Region counties 1841-2016

Source: CSO, 2017, Census 2016 Profile 2 -E2001: Population at Each Census 1841 to 2016 by County, Sex and Census Year

Of course the most rapid decline in population coincided with the famine (shown by the change between the 1841 and 1851 census), with Western Region counties losing between 32% (Roscommon) and 14% (Donegal) of their population in that decade[1].  Bald population data can only indicate the horror of that time.

After 1851, as we know, the population continued to decline, for the most part at a gradually decreasing rate, until the 1971 Census when the population of Clare and Galway both showed increases. Other Western Region counties followed over the next decades (with some fluctuations) and Leitrim experienced its first population increase since 1841 in 2006, 165 years later.

None of the Western Region counties have yet returned to their 1841 population levels (Table 2) through there is significant variation in the percentage of the 1841 population resident in each county today.

 

Table 2: Population of Western Region counties and State, 1841 and 2016

1841 2016 2016 as % of 1841 population
Clare 286,394 118,817 41%
Galway 440,198 258,058 59%
Leitrim 155,297 32,044 21%
Mayo 388,887 130,507 34%
Roscommon 253,591 64,544 25%
Sligo 180,886 65,535 36%
Donegal 296,448 159,192 54%
Western Region 2,001,701 828,697 41%
State 6,528,799 4,761,865 73%
Source: CSO, 2017, Census 2016 Profile 2 -E2001: Population at Each Census 1841 to 2016 by County, Sex and Census Year, and own calculations

 

The State, which had a population of more than 6.5m in 1841, now has 73% of its 1841 population.  There are predictions of more rapid population growth see here and here and here , bringing the population back to pre-famine levels before the bicentennial of the 1841 census.  This is largely due to more significant population recovery in other parts of Ireland, in particular on the east coast around the capital.

Despite declines in the nineteenth century (except in Dublin), five counties (Table 3) in the State now have higher populations than they did in 1841.

Table 3: Population of the five counties with larger population in 2016 than 1841

1841 2016 2016 as % 1841 population
Louth 128,240 128,884 101%
Meath 183,828 195,044 106%
Wicklow 126,143 142,425 113%
Kildare 114,488 222,504 194%
Dublin 372,773 1,347,359 361%
Source: CSO, 2017, Census 2016 Profile 2 -E2001: Population at Each Census 1841 to 2016 by County, Sex and Census Year, and own calculations

 

The population has moved eastward (and out of the State), but if rising population is a good indicator of a successful economy and society, it is to be hoped that the Western Region can also recover much of its pre-famine population by 2041.  Perhaps the forthcoming National Planning Framework  will be instrumental in achieving this.  However, given shifting population patterns (see here) it is likely that the 2041 population will be living in very different parts of the Region than in 1841.

 

 

Helen McHenry

[1] The population of Dublin County grew by 9% in that decade, the only county in the State which showed growth.

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Census 2016: Rurality, Population Density and the Urban Population of the Western Region

Detailed population figures from the Census of Population were published last week in Profile 2 – Population Distribution and Movements  which looked at population density, rural and urban populations and the population in towns.

Rural and Urban Population

In Ireland as a whole just over a third (37%) of the population live in rural areas (that is outside towns of 1,500).  In contrast, in the Western Region shows the opposite pattern and 65% live in rural areas (Figure 1).  This is a marginal decline on 2011 (when it was 66%).

The rural population of the seven counties varies from almost 90% in Leitrim (where there is only one ‘urban centre- over 1,500) to 54% in Galway which of course includes the largest settlement.  After Leitrim, Roscommon, Donegal and Mayo are the most rural of the Western Region counties.  Sligo and Clare, along with Galway are slightly less rural.  It should be noted that Galway county (i.e. excluding the city) is one of the most rural with almost 78% of the population living in rural areas.

Figure 1: Percentage of Population living in rural areas in the Western Region and State.

Source: CSO Census 2016 Profile 2 E2008: Population Percentage in the Aggregate Town Areas and Aggregate Rural Areas

 

Each county, and the Western Region itself (64.7%), has a significantly higher proportion of people living in rural areas than for the State as a whole (37%).

 

Population Density

Density is another key indicator of rurality and it certainly is important in considering the provision of services.  In Ireland as a whole the population density is 70 people per square kilometre and in the more rural Western Region it is almost 32 people per km2 .  Again there is considerable variation by county and as can be seen in Figure 2 below, this largely mirrors the rurality of each of the seven counties.

Figure 2: Population Density in the Western Region and State (persons per sq km)

Source: CSO Census 2016 Profile 2 E2013: Population Density and Area Size 2011 to 2016

 

Galway has the highest population density (42 people per square km) and Leitrim has the lowest with just over 20 people per square kilometre.

Population in Towns

The population of towns across is also included in this Profile and looking at towns across the region the weak urban structure of the region is evident.

Galway is the significant city, with a population of 79,934 in 2016.  Only five towns have a population of more than 10,000 people (Table 1), and all of these had population declines between 2011 and 2016 though, with the exception of Ballina these were small.  Ennis, the largest settlement after Galway is less than a third of its size (25,276 people), and it had a slight population decline (-0.3%) while Letterkenny (19,274) and Sligo (19,199) also had population decreases (1.6% and 1.3%).  The population of Castlebar (12,068) fell by 2% but that in Ballina (10,171) fell by a more significant 8.3%.

Table 1: Population of Towns larger than 10,000 in the Western Region

2011 – Population (Number) 2016 – Population (Number) Actual change since previous census (Number) Percentage change since previous census (%)
Galway City and Suburbs, Galway 76,778 79,934 3,156 4.1
Ennis*, Clare 25,360 25,276 84 -0.3
Letterkenny*, Donegal 19,588 19,274 314 -1.6
Sligo*, Sligo 19,452 19,199 253 -1.3
Castlebar*, Mayo 12,318 12,068 250 -2
Ballina*, Mayo 11,086 10,171 915 -8.3
*Boundaries used for these Census towns have been changed since 2011 so the populations between 2011 and 2016 are not directly comparable.  See this post for more discussion.
Source: CSO Census 2016 Profile 2 E2016: Population and Actual and Percentage Change 2011 to 2016 by Alphabetical List of Towns

 

There are a further seven towns with a population of more than 5,000 (Table 2) giving a total of 13 towns including Galway in that size category (5,000-9,999) in the Western Region.  All of the towns in this category grew with the exception of Buncrana (-0.8%) and Ballinasloe which had no change.  The largest growth was in Loughrea (9.8%) which, along with Tuam, serves as a residential location for people working in Galway.

Table 2: Population of Towns 5,000-9,999 in the Western Region

2011 – Population (Number) 2016 – Population (Number) Actual change since previous census (Number) Percentage change since previous census (%)
Shannon*, Clare             9,673            9,729 56 0.6
Tuam*, Galway             8,242            8,767 525 6.4
Buncrana*, Donegal             6,839            6,785 – 54 -0.8
Ballinasloe*, Galway             6,659           6,662     3 0
Westport*, Mayo             6,063            6,198   135 2.2
Roscommon, Roscommon             5,693            5,876  183 3.2
Loughrea*, Galway             5,062            5,556 494 9.8
*Boundaries used for these Census towns have been changed since 2011 so the populations between 2011 and 2016 are not directly comparable. See this post for more discussion.
Source: CSO Census 2016 Profile 2 E2016: Population and Actual and Percentage Change 2011 to 2016 by Alphabetical List of Towns

 

There are a further 27 towns in the Western Region with a population of more than 1,500 and which are therefore categorised as urban.  Athenry (12.5%), Gort (13.2%), Tubbercurry (13.7%) and Collooney (17.6%) showed the strongest growth, while Clifden showed a very significant population decline (-22.3%) partially associated with the closure of a Direct Provision Accommodation Centre in 2012.

Table 3 below shows the urban structure of the region.  165,922 people (58% of the region’s urban population of 283,873) live in towns of more than 10,000, and a further 49,573 people (17%) in towns of more than 5,000.  A significant population lives in the smallest towns 68,378 (24%)

Table 3: Urban Structure of the Western Region

2011 2016 Actual change (2011-2016) Percentage change (2011-2016)
Population of towns greater than 10,000 164,582 165,922 1,340 0.8%
Population of towns 5,000- 9,999 48,231 49,573 1,342 2.8%
Population of towns 1,500-4,999 66,647 68,378 1,731 2.6%
Total Population of towns greater than 1,500 279,460 283,873 4,413 1.6%
Source: CSO Census 2016 Profile 2 E2016: Population and Actual and Percentage Change 2011 to 2016 by Alphabetical List of Towns

 

While these urban populations are significant in the context of the region, it should be remembered that more than half a million people (535,953) are living in rural areas (in small settlements and open countryside) in the Region.  The CSO has provides population details of a further 201 settlements in the Region, the smallest of these is Malin (population 92) and 103,936 people live in these.  A total of 440,888 (53%) therefore live in more open countryside (and in even smaller settlements).

Conclusion

It is important to remember that the Western Region is a very rural region, and while higher level services (for example in health and education) should be provided in the larger urban settlements, the needs of those living in more rural, dispersed populations and the best means of providing services and access to services and employment in these areas must be considered.

For some more detail on town populations in each Western Region county see the WDC County Profiles.

 

Helen McHenry

 

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What are the Capital Infrastructure Priorities for the Western Region?

Last week the WDC made a Submission to the Public Consultation on the Mid-term Review of the Capital Plan 2016-2021.

The consultation sought views as to what should be included in the current Plan (€42 billion), over and above what is already included – arising from additional resources (€5 billion) being made available.

In addition, an interesting and welcome aspect was that the Consultation also sought views on the criteria which should inform consideration of the capital investment choices to be made. This was in the context of the remainder of the current plan, but also and arguably of more importance in the context of a longer term 10 year Capital Plan.

This idea of a longer term 10 year Capital Plan acknowledges another important Public Consultation underway – the National Planning Framework (NPF) and the need to consider investment priorities which would align and support the final NPF. A draft NPF is due for consideration over this Summer.

In discussing the Considerations for the Mid-Term Review of the Capital Plan (Section 2), the WDC highlighted the importance of infrastructure for regional development where all regions need quality infrastructure to compete effectively. The WDC submission also noted;

  • The importance of long-term planning, as decisions made on infrastructure now have very long term impacts.
  • The need to invest to join existing networks together and complete ‘unfinished sections’. For example once the Gort-Tuam motorway is complete, the priority should then be to improve the outstanding sections between Tuam and Sligo to ensure a high quality road network.
  • Identify and utilise existing available capacity before considering new investments at congested sites. For example there is international air access capacity available at Shannon and Ireland West Airport Knock. Another example is to develop more attractive services on the rail network, which is a valuable transport asset with capacity to ease congestion on the road network and help us meet Ireland’s climate change obligations.
  • Develop inter-regional linkages. While connectivity to Dublin from most regions has improved considerably in the last decade, inter-regional connectivity is relatively poor. By improving inter-regional connectivity, such as improving the road network between the urban centres in the Mid-West, West and North West then the investment potential of the key urban centres there can be enhanced.

The WDC submission also notes the importance of appropriate appraisal and evaluation methods when considering alternative investment projects. The capital appraisal and evaluation methods determining the costs and benefits of different investment projects need to be re-examined. The traditional cost benefit approach will naturally favour the larger and often largest population centres as the impacts are likely to be felt by a greater number, wherever the project is being delivered. To realise better spatial balance, there will need to be a change to the conventional appraisal and evaluation methodologies which are typically used to determine what projects proceed. The impact on the wider spatial balance of the country should be factored in.

In the section examining the prioritisation of Capital Expenditure and Selection of Projects/Programmes in current Capital Plan (Section 3), the WDC focused on the infrastructure areas it considers critical for Western development.

Key priority infrastructural investments include:

  • Funding to deliver and complete the National Broadband Plan as soon as possible to ensure high speed broadband for all.
  • National primary road improvements including N4, N5, N6, M17, M18, incorporating the Atlantic Road corridor.
  • National secondary roads see WDC Submission for specific priorities.
  • There is a need to increase regional and local roads funding to allow road maintenance programme to be enhanced.
  • The importance of Bus services and the Rural transport programme to citizens in the Western Region is highlighted.
  • Continue investment is needed to support increased rail frequencies and service levels on routes serving the Western Region.
  • Ongoing support for improvements and access to Ireland West Airport Knock and Shannon.
  • Investment in the electricity network and natural gas infrastructure is made through the commercial state sector, but it should be co-ordinated and monitored through the Capital Investment Plan.
  • Apart from completing all energy commitments in the Capital Plan there should be investment to connect to the natural gas grid at Athenry, Ballyhaunis and Knock, all three of which qualified for connection in 2006.

In Section 4, Long-term Capital Investment Framework (10 years), the WDC Submission examines the longer-term considerations needed for effective capital investment. The WDC believes that capital investment which is by its nature long-term investment should be undertaken within the context of a longer term planning framework as is proposed in the National Planning Framework 2040. The WDC has made a detailed submission to the NPF (4.5 MB) consultation conducted by the Department of Housing, Planning, Community and Local Government.

Other considerations include:

Capital spending on new infrastructure should focus on supporting better spatial balance as well as supporting those citizens and that part of the country which is relatively poorly served. Quality infrastructure is one of the necessary conditions for regional development.

Investment in road infrastructure to join existing networks together and complete ‘unfinished sections’. For example in the West/North West. These are often infrastructure requirements needed to satisfy current as well as future demand.

As outlined previously, the state should capitalise on the capacity already available and ‘sweat’ the state investment already made, such as in transport, for example the rail network and the international airports with spare capacity such as Shannon and Ireland West Airport Knock. Other examples include educational infrastructure (Institutes of Technology), Health facilities and Housing.

Policy will also influence the infrastructure investments needed. The need to lower carbon emissions will help influence infrastructural investments (for example supporting cleaner transport modes).

Another consideration is to enable greater policy integration and joined up investment decisions across all sectors, for example planning, employment and transport policy sectors, which are proven to help to make sustainable and active travel more attractive alternatives to the private car.

A good example is the benefits which could be realised through increased e-Working, see WDC Policy Briefing No.7 (748 KB) which can reduce transport demand, traffic congestion and emissions. It has been estimated that if just 10% of the working population of 2.1 million were to work from home for 1 day a week, there would be a reduction of around 10 million car journeys to work per annum[1]. Benefits arising from higher broadband speeds and greater levels of e-Working include time savings, enhanced communications, increased sales and productivity gains[2]. To promote greater take-up, e-Work needs to be prioritised as a policy objective and a cross departmental approach is required. Lead departments would include the Department of Jobs, Enterprise and Innovation and the Department of Communications, Climate Change and Environment.

The WDC Submission is available for download here (4 MB).

Deirdre Frost

[1]Department for Transport, Smarter Travel: A Sustainable Transport Future, A New Transport Policy for Ireland 2009-2020 http://www.smartertravel.ie/sites/default/files/uploads/2012_12_27_Smarter_Travel_english_PN_WEB%5B1%5D.pdf#overlay-context=content/publications. p.35

[2] Indecon International Economic Consultants, July 2012. Economic / Socio-Economic Analysis of Options for

Rollout of Next Generation Broadband. Analysis undertaken on behalf of the Department of Communications, Energy and Natural Resources (DCENR) as part of the Government’s National Broadband Plan, 2012. http://www.dccae.gov.ie/communications/SiteCollectionDocuments/Broadband/National%20Broadband%20Plan.pdf

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What are the levers for effective regional development?

‘What are the levers for effective regional development?’  was one of the most interesting questions posed recently by the Department of Housing, Planning, Community & Local Government in its recent ‘Issues and Choices’ consultation paper for the National Planning Framework.

In our WDC Submission to the consultation, we drew on previous WDC analysis including the WDC Policy Briefings ‘Why care about regions? A new approach to regional policy’, ‘Education, Enterprise & Employment – How Can Better Integration Of The 3Es Drive Growth In The Western Region?’ and ‘e-Working in the Western Region: A Review of the Evidence’ as well as other research to answer this question.

In our submission we argue that Infrastructure, the ‘3Es’ (Enterprise, Employment and Education) and Innovation are the key levers for effective regional development. The central aim of regional policy, the National Planning Framework and the upcoming Regional Economic & Spatial Strategies should be to provide the conditions for regions to grow and realise their full potential.  Developing infrastructure, the 3Es and innovation is the way to do this.  When these three areas complement and support each other, they drive regional growth.  Each has a distinctive role, and needs its own policy focus, but they are most effective when addressed through an integrated regional policy approach.

Growing Regions, WDC (2010), Why care about regions?

Infrastructure

Investment in infrastructure has always played a prominent role in regional policy.  The expectation that improvements in physical infrastructure will generate productivity gains for local businesses and increase the attractiveness of an area for investment and for tourism has been a recurring theme.  Less developed regions need to have a similar quality of infrastructures for their residents and businesses as is available in more successful regions. Infrastructural connectivity has a critical influence on choice of location for both indigenous and foreign investors.  The Western Region, and particularly the North West, is disadvantaged in terms of several forms of infrastructure.  For example Sligo was the only NSS Gateway which was not connected to Dublin with a motorway under the Major Inter-Urban motorway investments between 2006 and 2010 and was the only NSS Gateway or Hub to have a 0 improvement in its ‘accessibility to employment’ score as a result of this period of intensive investment, according to research by Transport Infrastructure Ireland.

In its submission to the NPF, the WDC makes a range of specific recommendations in relation to infrastructural investments needed to facilitate development in the Western Region.  The proposed investments include transport (national roads, regional and local roads, public transport (rail and bus), air and ports), communications (broadband and mobile coverage) and energy (electricity and natural gas).  These infrastructure investments are also highlighted in the WDC’s submission to the Mid-Term Review of the Capital Plan.

While infrastructure is critical, OECD[1]  work emphasises that transport and other infrastructure developments are not enough by themselves; to have an impact on regional development they need to be associated with, and complemented by, human capital and innovation developments.

The ‘3Es’: Enterprise, Employment and Education

Regions are successful because enterprises in these regions are successful.  When enterprises grow, employment grows and this depends on skilled and educated people.  Policy to support the ‘3Es’ of enterprise, employment and education must work together at both national and regional level to create dynamic regions.[2]

One of the most important issues that needs to be recognised and addressed by the NPF is that narrow definitions of ‘job’, ‘work’ and ‘employer’ as a full-time permanent employee travelling every day to a specific work location is extremely limited and does not recognise either the current reality of ‘work’ or the dramatically changing patterns likely to emerge up to 2040. Self-employment, the ‘gig’ or ‘sharing’ economy, contract work, freelancing, e-Working, multiple income streams, online business are all trends that are dramatically redefining the conception of work, enterprise, and their physical location.

A study conducted for Vodafone in 2016 found that nearly one in four broadband users in rural Ireland use the internet at home in relation to their work and one third have remote access to their company network. An estimated 150,000 rural workers avoid commuting some or all of the time because they can connect to work remotely.  This trend is likely to continue.

If the NPF mainly equates the term ‘employer’ with a large IT services or high-tech manufacturing company, many of which (though by no means all) are attracted to larger cities, then it will only address a small proportion of the State’s population and labour force, and will not help to achieve effective regional development. The NPF must recognise and support existing and new sole traders, micro-businesses and freelancers working in sectors where lagging regions have comparative advantage or which are not location dependent.

Quality of life is a key determinant in the location decision of many people and current trends in the world of work and technology will increasingly help people to work from the same location where they want to live.

Enterprise

Enterprises create most jobs.  The NPF must recognise the need to enable and support the diversification of the Irish economy.  It must provide a support framework for indigenous business growth.

Many of the references to enterprises in the NPF Issues and Choices paper focus on high value, high skill exporting enterprises, which are central to export-led growth and tend to cluster in cities and larger urban centres.  However such enterprises cannot provide a full solution for regional development or jobs growth.  While they play a significant role, and have considerable multiplier impacts in other sectors, direct employment in such enterprises only accounts for one in five jobs nationally (2016 there were a total of 400,985 jobs in IDA and Enterprise Ireland supported companies nationally (DJEI) which was 19.5% of total employment (QNHS, Q4 2016)).

Enterprises in employment-intensive, lower-skill sectors are central to maintaining and growing employment both nationally and regionally.  This is termed a ‘whole of enterprise’ approach acknowledging that enterprises across all sectors have the potential to innovate and increase productivity but vary in how they contribute to growth and employment.  If the NPF focuses too narrowly on high skill, high growth enterprises and/or Foreign Direct Investment it will not lead to effective regional development.  Recognising the role and needs of entrepreneurs in local and personal services is important for sustaining as well as creating jobs, in particular in smaller centres and rural areas.  93.1% of registered enterprises in the Western Region are micro-enterprises, employing fewer than 10 people, and in general the region is characterised by smaller enterprise size (CSO, Business Demography 2014).

While Ireland has emerged from recession, enterprise numbers are not back to pre-recession levels and even more so in the Western Region and particularly more rural counties.  Between 2008 and 2014 (latest data available) the Western Region lost 8.6% of its enterprises, compared with a loss of 2.4% nationally. Construction, Wholesale & Retail, Professional Services and Accommodation & Food Service are the largest enterprise sectors. Indeed fewer than 5% of the Western Region’s enterprises are in the Financial & Insurance and Information & Communications sectors combined.  The region’s enterprise base is currently quite concentrated and diversification of the enterprise base is a key objective.

Employment

As stated in the NPF, a skilled workforce will attract high value enterprises to a region, but a skilled workforce are less likely to locate in a region unless the job opportunities already exist.  In reality this relationship is not so straightforward.  Job opportunities are a critical, but not the only factor in people’s decisions on where to live, many other personal and social factors influence this decision.  In Ireland many people have selected to live in one location but commute to work elsewhere in some cases e-Working for a number of days a week. Equally, areas with large pools of skilled labour e.g. counties in the wider Dublin commuter belt, have not necessarily been able to attract employers to locate there instead.  40% of workers living in the Mid-East region work in a different region.

In general, lagging regions have substantial reserves of unmobilised labour, indicated by higher unemployment rates and lower participation rates.  During the Celtic Tiger this pattern was largely reversed in the Western Region with rising participation rates, falling unemployment and high levels of inward migration as many people returned to the region on response to economic growth opportunities. The WDC’s LookWest.ie campaign effectively illustrated many case studies of individuals and enterprises who (re)located to the region at that time.  Labour markets in lagging regions have the potential to respond very positively to improved economic circumstances and stimulus.

The recession however led to high out-migration, which is particularly detrimental to lagging regions, as the propensity to migrate is higher among the more skilled, depriving the region of their skills and leaving the less skilled more dependent on local employment opportunities.  The creation of job or entrepreneurial opportunities for graduates in lagging regions will help retain and attract a highly skilled labour force and, in turn, stimulate further growth and employment.

A key characteristic of the Western Region is that 1 in 5 people who are at work in the Western Region is self-employed (75,000 people were self-employed in the Western Region, QNHS special run, Q1 2016). While farming influences this to some extent, self-employment is higher in the region across most sectors and is particularly important in the most rural counties.

Between 2012 and 2016 the number of self-employed in the Western Region grew by 31.3% but the number of employees only increased 0.6%.  Practically all recent jobs growth in the region has been driven by self-employment. In more rural areas and smaller towns, people who wish to continue to live in these areas have created their own job.  The NPF must both recognise and support this trend.  The Local Enterprise Offices, local development companies and local authorities are most active in supporting this type of business. It would be important to continue and expand initiatives to support them such as:

  • Roll-out of fibre broadband.
  • Provision of serviced, shared workspace including through Community Enterprise Centres, at a reasonable cost.
  • Mentoring and provision of grants for start-up and established businesses.
  • Network facilitation to allow self-employed, particularly in more rural areas who may be quite isolated, to connect with others in other own or other sectors.
  • Training and upskilling for owner/managers and self-employed across all sectors including personal services (hairdressing, childminding), building trades, retail and hospitality.

What is most interesting in recent trends is that since 2012 there has been quite strong growth in the numbers self-employed who are employing other people (from 14,200 up to 19,000) showing the potential for the self-employed to be job creators.

Education

Further and higher education has an important role to play in regional development.  Educational institutions build a region’s human capital assets, attract and retain talent.  Further education and training have a particular role in up-skilling those with lower education levels, who face higher unemployment rates and are at greater risk of long term unemployment.  Lagging regions generally have a greater share of their labour force with lower levels of education.  In 2011 54.7% of adults in the Western Region had only secondary level education or lower, compared with 51.9% nationally.

Higher education brings knowledge creation, knowledge transfer, cultural and community development and innovation to regions.  It can also stimulate entrepreneurship. Within the Western Region, NUI Galway is a key regional asset and economic driver. It greatly contributes to the attractiveness and economic development of Galway city and its wider hinterland.  To the North West the three Institutes of Technology of Letterkenny, Sligo and Galway-Mayo, are collaborating on the Connacht/Ulster Alliance, an initiative that has the potential to expand the contribution of higher education to regional development in this area.

The broader role of further and higher education, touching on innovation, enterprise and employment, needs to be a key focus of regional policy.  Where this works effectively it becomes part of a virtuous cycle producing graduates and skilled workers, and enabling them to find employment in developing enterprises.

Innovation

To remain competitive, manufacturing and service firms must continually upgrade skills and capabilities, access new ideas and technologies through industry networks, tap the knowledge of their workers, suppliers and customers and search for new market opportunities. This is all innovation.

Innovation policy is often focused on scientific and technological research, but while leading OECD regions produce several hundred patents per year per million inhabitants, more than one third of OECD regions generate fewer than ten patents per year.  Lagging regions need a different kind of innovation policy, one that emphasises absorption capacity and innovation by adoption.

Policy needs to address the issues of regions that are not innovation leaders.  A substantial element of innovation policy should be focused on adoption of innovations developed elsewhere and on initiatives in areas such as human resource management or implementation of new processes.  It should stimulate innovation activity in areas where rural regions have particular strengths such as renewable energy and agri-food.

Regional policy which addresses the levers of effective regional development – Infrastructure, the 3Es and Innovation – through a co-ordinated, place-based, cross-sectoral  approach is needed if the so-called, ‘business as usual’ spatial pattern of growth is to be disrupted and all regions facilitated to realise their potential for economic growth and provide sustainable livelihoods for those who live there.

Pauline White

[1] OECD, 2009, How Regions Grow: Trends and Analysis; OECD, 2009, Regions Matter: Economic Recovery, Innovation and Sustainable Growth

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