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Eastside Docklands - Construction and Unemployment Changing the Narrative

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Eastside Docklands - Construction and Unemployment Changing the Narrative 2020 Construction and Unemployment Changing the Dublin Narrative Eastside + Docklands Local Employment Services A project of St. Andrew’s Resource Centre + Inner City Renewal Group Report on Dublin City Construction Skills Project 2020 Eastside Docklands - Construction and Unemployment Changing the Narrative Employment and Unemployment Trends in Ireland and Impact on Young Workers Increase in Since 2017 Ireland has continued to experience The scale of youth unemployment, and proportion of long- a strengthening labour market, with further its potential for long-term damage to the term unemployed improvements in the number of labour market employment prospects of individuals, highlights indicators. In 2017, the unemployment level the need for policies to actively address youth 2007 declined by 37,000, while the unemployment and young people unemployed. This report rate declined by 1.7% to an annual average deals with the impact on a specified area and of 6.7%. client cohorts. As the thinking about how best 27% to address the issue the youth and Long term The unemployment rate in Ireland is still higher unemployment rates in specific communities than in the period from 2002-2007.1 In Ireland were considered. by 2018, there were 36,000 more people unemployed (and 23,000 more long-term unemployed), than there had been in 2005, with evidence that the employment rate is still far Long Term Unemployed from recovering from the impact of the financial As the development of the project continued 2010 crisis. As is noted by Ciarán Nugent of NERI, this the figures were stark. While the wider lack of recovery in the unemployment figures unemployment rate has declined by 1.7%, it is is due, for the most part, to the collapse of of note that the rate for long term unemployed employment for younger cohorts, particularly declined by only 0.8% to 2.5% in quarter 4 for young men. 2 50% of 2017. Unemployment amongst young men is a trend Indeed the proportion of the unemployed who that finds its roots prior to the most recent were long-term unemployed has increased from economic downturn. The biggest change in 27% in 2007, to 50% in late 2010, and reached employment rates since 1998 is the sharp 60.6% by Q1 2012.4 Statistically, individuals fall in the employment rate for the 20-24 who are long-term unemployed carry a high year old cohort. Between 2007 and 2012 the probability of remaining so for some time. employment rate for 20-24 year olds fell by 2012 23%-the largest decline of any age group in this period. Recovery has also been slowest for this group, even from such a low base3 in 2017 the youth unemployment rate stood at 12.2%. 60.6% 1 Ciáran Nugent, Labour Market Trends in the Republic of Ireland 2019, Nevin Economic Research Institute, Dublin 2 Nugent, NERI 2019, 3 3 Nugent, NERI 2019, 14 4 Micheál L. Collins, ‘Retraining and Activating the ‘Distant Unemployed’; New Roles and Measures for Locally Based ALMPS’ Nevin Economic Research Institute, Dublin, 4 1 Eastside Docklands - Employment and Unemployment Trends Report “I had never worked before this course and within two weeks of completing the training I was in full time employment Recently hired Unemployment and Recognising a in 2017 Education Training Need 53% were male Figures from the National Skills Bulletin 2018 The statistical analysis of employment trends, indicate that in Q4 2017, persons aged under as well as first-hand experience in the Dublin 25 with less than higher secondary education labour market, resulted in St. Andrew’s Resource observed the greatest unemployment rates and Centre identifying in 2015 that an initiative 53% had the highest risk of unemployment regardless was required to create a suitable training male of education level. opportunity for unemployed men, who would benefit from an informal education intervention Furthermore, between Q4 2016 and Q4 2017, in an area that would better improve their job the unemployment rate decreased for almost all prospects, remove them from the live register, age and education categories with the exception and break the cycle of long-term unemployment. 65% were hired for of those with a lower secondary or less level of full time education (this band increased by 2.5%). Based on a wider analysis of employment trends in Dublin in 2015, the construction sector was identified as an area that was actively seeking Labour Market Transitions 65% skilled tradespeople, and where structured full and Recent Job Hires educational intervention could benefit the job time prospects of the long-term unemployed. The investment by the state of some 2 billion in The National Skills Bulletin notes that in 2017 € the small Dublin Docklands area encouraged the of those recently hired: organisation to pursue an effective intervention, • 53% were male putting aside some of the tokenism that had • 65% were hired for full time position been experienced in previous local labour 65% were hired for • 66% were aged less than 35 initiatives. full time • In terms of education > 44% held a secondary education or less > 12% held a post-secondary qualification > 42% held a third level qualification 66% • The wholesale and retail sector along with <35 the accommodation and food sector years accounted for the highest number of recent job hires. 2 Eastside Docklands - Construction and Unemployment Changing the Narrative Construction and Employment Trends The impact of the property crash of 2008 It is important to note that between 2012 and is clear in the sharp decline in the share of 2015, the construction sector grew on average employment in Skilled Trades in 2019. Between by 5.1%, compared to 3.1% nationally. The 2007 and 2012 close to 160,000 jobs were strongest rate of employment growth was lost in the construction sector. 66% of those observed for painters and decorators 16.2%). employed in the construction sector were listed The 25-54 age group accounted for the majority as ‘skilled trades’ prior to the crash, compared to of persons employed, at 76%, with just 17% 20.6 of the economy as a whole. In 2018 there employed in construction over the age of 55 remained 80,000 fewer skilled trades’ jobs in (this is in line with the national average for Ireland compared to 2007. This is of particular this age group). In terms of education, 46% of concern due to the current recruitment those employed in the construction sector had problems in the construction sector and in the attained higher secondary/FET qualification, face of the ever-deteriorating housing crisis. above the national average of 36%, while those who had attained a third level qualification was According to the National Skills Bulletin 20185 just 26%, compared to the national average (the most recent publically available version), of 48%. employment growth in construction in 2018 related predominantly to skilled trades and Over 88% of construction workers were in operative/elementary occupations. Growth for full time employment, with non-Irish workers professional roles has been smaller. Despite accounted for 15% of the workforce, a figure in this employment growth, there remains line with the national average. over 11,000 job ready job seekers who had previously worked in the construction sector, In terms of unemployment by sector between although most of these are in the lower skilled Q4 2016 and Q4 2017 the construction sector occupations. experienced the greatest decline in terms of numbers of person unemployed. 2017 Construction Figures Demand for Construction In 2017, 60% of overall employment was Workers concentrated in the construction sector, with approx. 131,600 people employed in The identification of the construction sector construction (of which 94% were male). This in 2015 as an appropriate area for up-skilling/ represents 6.2% of the national workforce. re-skilling has proven fruitful and resulted in 5 National Skills Bulletin 2018, 6 3 Eastside Docklands - Employment and Unemployment Trends Report “Without this course, I wouldn’t have had the confidence or skills to apply for a job Building and a 70% placement rate in 2018 for all course • Trades: shuttering carpenters, shift managers, Construction volumes participants more details of this will be set out glaziers, steel erectors, curtain wallers increase later in this document. The demand for skilled • Operatives: scaffolders, pipe layers. Q3 2017 - Q3 108 and semi-skilled construction workers was highlighted in a recent survey carried out by According to the CIF, data available for Q3 the Construction Industry Federation (CIF) in 2018 indicates that on an annual basis the February 2019, 89% of CIF member companies volume of output in building and construction indicated that they were experiencing increased by 12% when compared with the difficulties in recruiting workers. 6 This figure third quarter of 2017. Output volumes increased incorporates both qualified/experienced workers, in civil engineering work (27.3%), nonresidential as well as entry-level workers. The CIF report building work (17.9%) and residential highlights that across the board qualified building work (7.8%). By 2020 the volume of tradespeople are most in demand, particular construction output is forecast to reach 25 12% those in the wet trades such as block laying, billion (in 2017 prices) or €30 billion in current plastering, tiling and painting/decorating. A prices, which is equivalent to around 8.8% severe lack of foremen, general operatives, of GDP. ground workers and apprentices was also noted. Having identified an appropriate sector for job According to CIF, 74% of those surveyed said prospects, as well as a cohort of unemployed that recruitment issues were having a direct client types that would benefit from upskilling/ affect on their companies’ ability to deliver re-training, St.
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