| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy


Finfacts changes from 2015

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Global Cost of Living

Irish Tax - Income/Corporate

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Feb 9, 2015 - 5:11 AM


UK, Ireland talk up full employment; Focus on quantity not quality - Part 1
By Michael Hennigan, Finfacts founder and editor
Jan 26, 2015 - 9:09 AM

Email this article
 Printer friendly page

Enda Kenny (r) at World Economic Forum, Davos, Switzerland, Jan 22, 2015.

The UK’s economy has moved towards low-skilled jobs and less towards high-skilled ones compared with other European countries, according to Oxford university research. The number of double-jobbers in the economy has also grown and while politicians brag about headline numbers in the UK and Ireland, there is rising insecurity and hours available.

Last Monday, David Cameron, British prime minister, promised “full employment” in the UK if the Tories win the next election. He set a target of ensuring that “anyone who wants a job is able to get a job in our country.”

In Ireland in the previous week, Enda Kenny, taoiseach, set a full employment target for 2018 with all jobs lost in the recession restored. As we reported last week, the Government had to fiddle the data to meet that goal.

Last week the UK Office for National Statistics (ONS) reported that 5.8% of the working population are without a job. In the three months to November, the number of unemployed fell to 1.91m – a million fewer than five years ago.  At the same time average earnings rose 1.8% over the past 12 months, overtaking the inflation rate by 0.5% after years of falling average real wages.

Last year the Treasury calculated that its "tax-gap" for 2013 - the difference between the amount of tax it should collect in theory and actual receipts - rose to £34bn, the highest level for over eight years. This mainly reflected income tax receipts being below levels that were expected based on jobs growth.

Michael Saunders and Ann O'Kelly, Citigroup analysts, found that almost all the employment growth over the past year was in sectors which pay at least 20% below the national average. Meanwhile, more than half the new jobs created since 2010 have been among the self-employed, while the proportion of self-employed people who earn sufficient income to pay tax has fallen from 80% to 65 per since 2008. Wage growth as we suggested has only risen in real terms in recent times.

  • Of the rise in UK employment of 1.3m between early 2008 and November 2014, 220,00 full time employee jobs were added; 400,000 part-time employee positions and almost 700,000 in self-employment;
  • In Ireland last September, 124,000 part-time workers were seeking full-time work - 6% of the total workforce;
  • In Ireland there were 76,000 in government activation programmes in September 2014 and the number in UK government supported training & employment programmes was at 112,000 in November 2014;
  • Deutsche Bank economists say that since 2011, the marked increase in employment has been solely attributable to an expansion of regular employment, i.e. permanent full-time jobs with social insurance obligations;
  • Irish full-time employee numbers grew by 14,000 in the 12 months to the third quarter of 2014 and remain 258,000 below the Q2 2008 level;
  • Compared with Q1 2008 and Q3 2014:
  • There is a loss of 233,000 full-time employee jobs;

    Self-employed owners with employees are down 35,000;

    Self-employed 1 person operations and Assisting Relative are down 10.0;

    Part-time work is up 49,000.

  • Average hourly total labour costs (pay + costs such as PRSI and pensions) fell by 1.9% over the four years to Q3 2014 from €24.72 to €24.26 per hour.

Irish ministers of course will not highlight the importance of full-time employee positions that would support a mortgage - while a poor job is usually better than being unemployed, it's important to consider this issue in relation to the touted full-employment target - see link above.

The Financial Times reports today that the UK is becoming a nation of grafters. "With living standards at their lowest in a decade and real-term wages falling 8% since the financial crisis, more people are cramming extra work into evenings, weekends and even their lunch hours to supplement their main incomes.

Officially, the average number of hours Britons work each week has increased from 31.4 to 32.2 since 2011 after years of decline. There are now about 1.2m with two jobs, up from about 1.05m in 2007. The number of workers combining their main job with a second self-employed role has increased 40 per cent since 2006 to 450,000."

The ONS said last week that n 2014, just under 1 in 10, or 3.0m people of 30.8m employed in the UK, wanted to work more hours than they are currently employed to do and are therefore classified as underemployed.

On average each underemployed worker would like to work an extra 11.3 hours per week. In the UK in 2014, just under 1 in 10 workers in the UK would like to work fewer hours for less pay, and are therefore classified as overemployed while 13.9% of workers in Professional Occupations were overemployed.

In 2014, over 1 in 5 part time workers were underemployed compared with around 1 in 20 of full time workers.

UK productivity falls; Ireland's apprenticeship system remains a shambles - Part 2

Related Articles


© Copyright 2015 by Finfacts.ie

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March