144,000 Net New Jobs Across The Island of Ireland Projected by 2020

By December 13, 2017 Latest News No Comments
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EY has today released its latest economic eye report which shows that jobs growth has been positive across the island in the period 2014 – 2017, with an increase of 12.4% in net employment, broadly spread across sectors and geographies.

The report projects growth of 144,000 net additional jobs in the period 2017-20 across the island of Ireland. Growth figures are driven largely by the ROI, where 138,500 new jobs are projected, led across a number of sectors, including construction, manufacturing, transport and storage and ICT. However, the report highlights a more challenging outlook for Northern Ireland, with a projected growth of 5,800 jobs by 2020.

Economic Eye projects growth of 144,000 net additional jobs in the period 2017-20 across the island of Ireland. Growth figures are driven largely by the ROI, where 138,500 new jobs are projected, led across a number of sectors, including construction, manufacturing, transport and storage and ICT. However, the report highlights a more challenging outlook for Northern Ireland, with a projected growth of 5,800 jobs by 2020.

The report suggests an increasing divergence in economic fortunes across the island of Ireland. Economic Eye projects Republic of Ireland (‘ROI’) GDP growth of 4.9% in 2017, making it Europe’s fastest-growing economy. However, economic growth in Northern Ireland is projected to be more modest at 1.4% for 2017.

According to Economic Eye, the retail sector has recovered to 2010 levels with total growth of 14% in the ROI since 2013’s historic lows. The retail industry (excluding wholesale) now accounts for approximately 10% of all jobs in ROI. EY anticipates that jobs growth in retail will continue in ROI with the addition of approximately 10,500 addition jobs in the retail sector between 2017 and 2022, while a decrease of 3,000 is forecast for Northern Ireland.

EY estimates that cross-border shopping to Northern Ireland over the last year is in the region of €418m. This figure does not include significant car sales that have increased faster in Northern Ireland (18%) than in the UK (13%), Scotland (14%) and Wales (11%). This estimate does not include figures for shops without a physical presence in the state, thus excluding online shopping from the ROI to the UK. In most cases this will not benefit Northern Ireland unless the business is partly based there.

Commenting on the Economic Eye, Chief Economist at EY Ireland, Neil Gibson said, “A healthy labour market and low inflation are boosting the economy in ROI, leaving the country in a position of strength to face the economic and geopolitical uncertainty that lies ahead. While the strength of the euro has a positive impact on exports, a more challenging environment pervades in Northern Ireland, which is not helped by the absence of a local government. Higher dependence on consumer and government spending in Northern Ireland, and very different inflation levels are creating divergence in spending power between the north and south, which is contributing to a weaker NI outlook.”

Source: www.businessworld.ie