LIMERICK DEVELOPMENT PLAN 2022-2028 Background Paper Economic Development & Employment Contents 1.0 – Introduction…………………………………………………………………………………………………………… ..... 3 2.0 – Strategic Context ............................................................................................................... 5 2.1 – National Policy ............................................................................................................... 5 2.2 – Regional Policy ............................................................................................................. 10 2.3 – Local Policy .................................................................................................................. 13 3.0 – Economic Overview ......................................................................................................... 17 3.1 – Population……………………………………………………………………………………………………… ........ 17 3.2 – Labour Market ............................................................................................................. 18 3.3 – Active Enterprises ........................................................................................................ 22 3.4 – Disposable Income ...................................................................................................... 23 3.5 – Education .................................................................................................................... 23 3.6 – Housing ....................................................................................................................... 24 3.7 – Commuting ................................................................................................................. 25 4.0 – Limerick Employment and Enterprise Strategy .............................................................. 27 4.1 – Strategic Employment Locations ................................................................................. 27 4.2 – Distribution of Jobs...................................................................................................... 28 5.0 – Retail .............................................................................................................................. 30 5.1 – National and Regional Policies .................................................................................... 30 5.2 – National Retail Performance ....................................................................................... 31 5.3 – Limerick’s Retail Performance ..................................................................................... 31 5.4 – Patterns of Use ............................................................................................................ 33 5.5 – Vacancy ....................................................................................................................... 33 5.6 – Footfall ........................................................................................................................ 35 5.7 – Impact of Covid-19 ...................................................................................................... 35 6.0 – Tourism ........................................................................................................................... 37 6.1 – Tourism Policy ............................................................................................................. 37 6.2 – National Tourism Performance ................................................................................... 39 6.3 – Limerick’s Tourism Performance ................................................................................. 40 6.4 – Limerick’s Tourism Assets ........................................................................................... 41 7.0 – Conclusion ...................................................................................................................... 42 1 List of Tables Table 1 – Percentage of total active workforce in a selection of key industry groups County Limerick and State – 1996 – 2006……………………………………………………………………………………. 15 Table 2 – Population 2011 – 2016........................................................................................ 17 Table 3 – Population Age Structure………………………………………………………………………............ 18 Table 4 – Population Projections for Limerick City and Suburbs………………………………......... 18 Table 5 – Principal Economic Status 2016………………………………………………………………………… 20 Table 6 – Education Attainment (%) 2016………………………………………………………………………… 23 Table 7 – Daytime working population of Limerick City and Suburbs 2016......................... 25 Table 8 – Daytime working population of Limerick City and County 2016………………………… 25 Table 9 – Commute Times 2016……………………………………………………………………………….……… 26 Table 10 – Strategic employment locations within Limerick City and Suburbs…………………. 28 Table 11 – Population and Employment in Urban Settlements, Limerick 2016……………….. 29 Table 12 – Limerick City Centre Ground Floor Use & Vacancy…………………………………………. 33 Table 13 –Core Retail Area Vacancy Rates …………………..……................................................ 34 Table 14 – Limerick City Vacancy by Street 2018 – 2020...................................................... 34 List of Figures Figure 1 – Unemployment Rate (%) 2011 – 2016………………….………………………………………... 19 Figure 2 – Employment by Sector 2016……………………………………………………………………………. 22 Figure 3 – O’Connell Street Footfall Figures………………..………………………………………………….. 35 2 1.0 – Introduction Limerick has become a desirable place to live, work and invest after a successful economic rejuvenation in recent years. From record levels of high unemployment and emigration in the past, Limerick, one of Europe’s emerging dynamic cities, is recognised as a success story and is ranked as one of the top 10 Western European cities in which to invest. This is the result of major investments in Limerick with the launch of the Limerick 2030 Economic and Spatial Plan which has seen the City been radically transformed with €1 billion invested in enterprise and infrastructure projects including Gardens International, Opera Site, Cleeves, Troy Film Studios and Mungret College Lands. The Limerick 2030 Plan is key for the city to realise its full potential and this has been accelerated by the establishment of the Limerick 2030 Strategic Development DAC, the first of its kind to be created by a local authority. Limerick has a number of key competitive advantages, including affordable housing and office space, low levels of congestion and relatively short commutes, which have resulted in the attraction of a broad spectrum of industries locating in Limerick. Limerick has been identified as one of the most affordable places in Ireland to either buy or rent property and this coupled with the fact, the disposal income is higher than the national average is a significant advantage. Collaboration and joined up thinking is a key strength within the Mid - West region, amongst Local Authorities, third level institutes, statutory bodies and representative bodies. Industry collaborations such as Limerick for IT and Limerick for Engineering are key examples of this collaboration, which are supported by education and training providers, to address future skills, needs and ensure adequate pipeline of talent. Limerick has excellent connectivity through Shannon International Airport and Shannon Foynes Port, and is central on the Atlantic Economic Corridor and the Wild Atlantic Way. Limerick is home to three excellent third level education institutions, the University of Limerick, the Limerick Institute of Technology and Mary Immaculate College. However, while Limerick’s economy has grown in recent years, the City and County now face major challenges with the recent Covid-19 pandemic. The adverse impact of this is evident with unprecedented increases in unemployment and with some businesses throughout Limerick City and County permanently closing as a result. The Covid – 19 pandemic has had a widespread negative impact on all sectors of society, indications are that the most negative impact has been on the market services sector. At the beginning of May, between 25 – 30% of Limerick’s workforce were unemployed – whereas in February 2020, Limerick’s unemployment rate was close to the national rate of 4.8% (adjusted Live Register). At the start of May 22,300 of Limerick’s inhabitants were claiming the Covid – 19 pandemic payment, which accounted for almost 4% of the overall claimants, as the country has opened up figures have dropped significantly, however this shift represents a move towards the temporary wage subsidy scheme, with the trend of people getting back to work. While all sectors of the economy have been impacted by the downturn, two sectors, retail and tourism will be considered as part of this paper, as these industries have been severely impacted by the recent crisis. 3 Despite, the current economic downturn, Limerick has unique characteristics and ambitious plans in place, which will support its recovery and help position Limerick for future economic growth. This paper sets out an overview of key economic issues that currently face Limerick. The layout of this paper is as follows: - Section two reviews national, regional and local policies which will impact future economic growth in Limerick. - Section three provides an overview of Limerick’s current economic performance, analysing the Central Statistics Office (CSO) Census 2016 data, including population, the labour force, enterprise, disposable income, housing and commuting patterns.