QS's Added to UK List of Professions Facing Skills Shortages

QS’s have been added to a British Home Office list of professions that are facing skills shortage. This move will allow firms to recruit skilled practitioners from abroad. Firms have been struggling to recruit experienced UK based and overseas QS's for some time. Recent research by the Royal Institute of Chartered Surveyors revealed there were around 6,500 QS vacancies across the UK in January 2007. Forty-nine per cent of these were unfilled for more than six months and 35 per cent for more than 12 months.

Davy's Construction Jobs Warning -But Ireland still to be one of the Top EU Economies

In a report on the Irish economy, Davy Stockbrokers says that 35,000 jobs will be lost in the construction sector by the end of 2008. However, it also says the losses will be offset by 15,000 new jobs in building of infrastructure and commercial property developments and it predicts economic growth will remain strong.Davy Stockbrokers reiterated the belief that the housing sector is on the brink of an adjustment, with the number of housing completions likely to fall in the second half of the year. The report says that the number of completions will fall off by 17 per cent in the second half of 2007. But it stressed that a forecast of 80,000 house completions for this year and 65,000 next year is still a soft landing.

Although there will be some redeployment of labour to other parts of the construction industry, it is "inevitable" that there will be job losses, Davy economist Robbie Kelleher said.The numbers of workers employed in housing will fall from around 185,000 to 150,000 by the end of 2008, he said. However, this will be partially offset by increased activity in other sectors of the construction industry, where Davy estimates an additional 17,000 people will be employed over the same period.That would leave a net job loss of around 17,000, or six per cent, between now and the end of 2008.

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Davy's Construction Jobs Warning -But Ireland still to be one of the Top EU Economies

In a report on the Irish economy, Davy Stockbrokers says that 35,000 jobs will be lost in the construction sector by the end of 2008. However, it also says the losses will be offset by 15,000 new jobs in building of infrastructure and commercial property developments and it predicts economic growth will remain strong.Davy Stockbrokers reiterated the belief that the housing sector is on the brink of an adjustment, with the number of housing completions likely to fall in the second half of the year. The report says that the number of completions will fall off by 17 per cent in the second half of 2007. But it stressed that a forecast of 80,000 house completions for this year and 65,000 next year is still a soft landing.
Although there will be some redeployment of labour to other parts of the construction industry, it is "inevitable" that there will be job losses, Davy economist Robbie Kelleher said.The numbers of workers employed in housing will fall from around 185,000 to 150,000 by the end of 2008, he said. However, this will be partially offset by increased activity in other sectors of the construction industry, where Davy estimates an additional 17,000 people will be employed over the same period.That would leave a net job loss of around 17,000, or six per cent, between now and the end of 2008.
With around 13 per cent of the construction workforce made up of foreign nationals, who are considered more mobile than other construction workers, a portion of this group may relocate to Britain.Increased levels of public sector construction under the National Development Plan, a buoyant commercial sector and a surge in home improvement will help counterbalance the downturn in housing, they say. As liquidity and affordability in the second-hand house market deteriorate, there is likely to be increased spending on home improvement, particularly given the financial resources available from SSIA accounts.The commercial, infrastructure and home improvement sectors account for up to 40 per cent of construction investment. However, Davy expects that employment in the construction sector as a whole will be falling at a year-on-year rate of six per cent by the end of 2008.Overall job creation in the economy is likely to slow to one per cent by the end of 2008, which is the equivalent of 20,000 jobs. This is down from a figure of 80,000 in the 12-month period to the end of February 2007. The February figures from the CSO showed an increase of over 28,300 new employees joining the construction industry in the previous 12 months.
The stockbroker’s report concluded by saying there are increasing signs that export growth will be stronger in the future than it has been in recent years. Davy sees GNP growing by 4.5 per cent this year and three per cent next year. Employment growth is likely to slow to one per cent by the end of 2008.

Northern Ireland Business Outlook Positive But Skills Shortages Need Addressing

The majority of businesses in Northern Ireland are optimistic about the future of the economy, according to an Ulster Bank survey.In its first all-island survey the bank finds that, in the north, 63 per cent of companies say their business prospects will improve.Half of companies in the Republic of Ireland say their business prospects will improve, while just under a third believe they will stand still.However in a report to the Northern Ireland Assembly business leaders said shortages of skilled workers in key areas will be a major factor holding back growth in the North's economy.The Confederation of British Industry (CBI) went before the North’s Employment and Learning Committee to stress the need for swift action rather than more consultations or strategies.They warned that training the right number of people in the right skills was needed if the North was to achieve the economic advance that the restoration of devolution provided it with.CBI projects there will be a need for 140,000 people to fill jobs during the next 10 years.

10 per cent of Irish Business Start Ups by Migrants

Ten per cent of new businesses in Ireland are begun by new arrivals to the country, according to the Bank of Ireland.In a new report the bank says that the most popular sectors for such start-ups are restaurants and food-related businesses, construction, consultancy and retail enterprises.They also said that 17 per cent of foreign nationals surveyed planned to start their own business in Ireland over the next five years.In response to this, BoI has launched a new business-banking proposition for Polish customers, which they say is the first initiative of its kind in Ireland.Damian Young, the banks head of small business says: “Latest projections show that the foreign national population could grow to 19 per cent by 2020. We have recognised the changing needs of our customer base and this is the first in a range of SME initiatives due to be launched to foreign nationals by Bank of Ireland.”Over the last six months, the bank has carried out research on foreign national customer needs and found that access to translated information and a lack of understanding of Irish banking terminology were the main concerns articulated.

Annual Irish Employment Growth Moderates in Q1 2007

The Irish Central Statistic Office (CSO) has reported in its Quarterly National Household Survey Quarter 1 2007 that the number of persons in employment in Ireland grew by 76,800 or 3.8 per cent in the year to 2,074,900 in the first quarter of 2007. This compares to an annual growth rate of 4.3 per cent in the previous quarter and to a rate of 4.7 per cent in the same quarter last year.The number of men in employment in Ireland increased over the year by 38,100 (up 3.3 per cent) while the number of females increased by 38,700 (up 4.6 per cent).When seasonal factors are taken into account the number of persons in employment increased by 16,400 in the quarter compared with an average quarterly adjusted increase of 21,400 in 2006.There were 91,800 persons unemployed in Ireland in the first quarter of 2007, representing an increase of 3,600 over the year. The increase of 3,300 in the numbers of unemployed males accounted for over 90 per cent of the overall annual increase. The number of persons in short-term unemployment increased by 3,800, which was partially offset by a small decrease of 200 in the number of persons in long-term unemployment. The seasonally adjusted unemployment rate increased from 4.1 per cent to 4.4 per cent between the fourth quarter of 2006 and the first quarter of 2007.The total number of persons in the Irish labour force now stands at 2,166,700, an increase of 80,400 or 3.9 per cent over the year. This accounts for 62.9 per cent of all persons aged 15 and over compared with 62.2 per cent in the first quarter of 2006. Female participation rose from 52.2 per cent to 53.2 per cent while that for males increased from 72.5 per cent to 72.8 per cent.Non-Irish national workers are tentatively estimated to have accounted for around 45,000 or almost 60 per cent of the annual increase in the numbers in employment. The number of unemployed foreign nationals increased by 1,200 over the year to 14,900 representing just under one sixth of the total number of unemployed persons in the first quarter.The latest available figures for all EU 25 member states, which are for the fourth quarter of 2006, show that between the fourth quarters of 2005 and 2006 Ireland’s employment level grew by 4.3 per cent and its labour force by 4.0 per cent. The comparable figures for the EU-25 countries were 2.1 per cent and one per cent respectively.

UK Earnings Growth Slowed in April

According to the UK national Statistics office employee earnings growth in the UK slowed quite dramatically in the three months to April. But unemployment continued to decline.
The office for National Statistics said average earnings growth, including bonuses, slowed to four per cent in the three months to April from the year earlier, after March's downwardly revised 4.4 per cent rise.
The April rate is well below analysts’ expectations for the reading to remain unchanged from the initial estimate for March of 4.5 per cent.
The rate was unchanged from March, which was revised down from 3.7 to 3.6 per cent. Elsewhere, the figures showed falls in the two main measures of unemployment. The number of Britons claiming the jobseeker's allowance, in May dropped by 9,300, after falling by an upwardly revised 16,000 in April.

Migration Still Driving Irish Labour Force Growth

According to the Irish Central Statistics Office demographic factors, such as the increase in the population of working age and changes in its age structure, added an estimated 63,000 to the labour force over the year. Net inward migration is estimated to have accounted for almost 75 per cent of this demographic increase. The demographic factor was particularly evident in the case of the 25-34 age group – the age group most affected by net inward migration – where a rise in the labour force of over 31,000 was recorded in the year.
Increased labour force participation accounted for the balance of 17,400 in the annual labour force growth. All age groups with the exception of those aged 25-34, which remained static, recorded increases in participation rates, while female participation rates in particular continued to rise sharply.
In the first quarter of 2007 foreign nationals accounted for almost 30 per cent of workers in the Irish hotels and restaurants sector, 13.5 per cent of Construction workers and 13.4 per cent of those employed in the Other Production Industries Sector.
There was an increase of 11,500 in the number of foreign workers in the Construction Sector, the largest increase across all sectors, while strong growth was also recorded in the Other Production industries (plus 9,600), Hotels and Restaurants (plus 9,100) and Wholesale and Retail Trade (plus 7,000) sectors.

Survey: Majority of senior UK bosses say a fixed target for annual staff dismissal is healthy

A survey by Hudson Recruitment in the UK found that British business chiefs want to dismiss an annual quota of underperforming staff, but fear doing so in the current employment market. The findings reveal that 61 per cent of senior UK bosses believe that a fixed target for annual staff dismissal is healthy.

Low-performance, low-potential employees are said to make up one tenth of a company’s workforce. Although shedding staff in a climate where companies are desperate to find talent is counterintuitive, nevertheless, retaining for the sake of retaining damages both the long-term health of a company and the career progression of the individual.

British business leaders acknowledged that there were distinct advantages to deliberately releasing average or below-average performers. Ensuring strong team members do not carry weaker ones was cited as the main advantage (60 per cent) of deliberately releasing average or below average performers. Allowing underperforming staff to pursue a fresh challenge more suited to their abilities (50 per cent), bottom-line improvement (36 per cent), ensuring that training is spent on those that will really benefit (35 per cent) and increasing productivity (33 per cent) also rated highly. But the risks inherent to this strategy were highlighted by the 75 per cent of respondents who cited ‘introducing a culture of fear’ as a deterrent to a dismissal quota. 61 per cent felt pursuing such a dismissal policy would lower morale within the workplace. In general, women seem to feel more strongly about the disadvantages than men. Women are almost 10 per cent more likely to think that deliberately releasing staff lowers morale (68 per cent vs 59 per cent) and just over 10 per cent are more likely to think that it decreases the motivation of the workforce (48 per cent vs 37 per cent).

Hudson’s research, the first of its kind to examine the business taboo of ‘culling’ within the context of business performance, highlights that the majority of UK bosses see the financial benefits of dismissing underperforming employees and admit that the advantages of such a dismissal policy clearly outweigh the disadvantages. Retaining for the sake of retaining will not help solve either the UK’s skills crisis or its increasing productivity gap. In addition, this retention is not good for a company’s long-term health or the career progression of the individual. However, legitimate concerns remain about both the implications of a dismissal target and the extent to which simply having hands on deck - regardless of the ability of those hands – is, in the current climate, better than having insufficient resources.

Irish Planning Institute highlights urgent need for professional planners

Dublin City Council is the only local authority in Ireland to have a post staffed at the highest planning officer grade, that of planning officer, according to a new survey carried out by the Irish Planning Institute. It also reports that counties such as Carlow, Kerry and Waterford are among local authorities that do not have the services of a senior planner.
The survey indicates that 600 professional planners were working in local authorities in the Republic in 2006. But it indicated that just 150 of these were working in what was described as “forward planning” and just 30 planners were employed on enforcement issues.

The Institute says enforcement was the most frustrating aspect of planning for the public. It also says there was an urgent need for more professional planners to cope with economic development, population growth and environmental challenges.

In many cases the survey found that the senior officers in planning departments were not planners but engineers or other professional grade staff.

Dublin City Council was the only local authority to have a post staffed at the highest planning officer grade, that of planning officer. The council had one planning officer. The survey also found that the only Government department to employ planners was Environment. The Institute called for planners to be employed in Transport, Tourism, Enterprise, and Education.

28,300 new jobs created in Irish Construction

The Central Statistics Office (CSO) has released figures that show continued growth of employment in the construction sector in Ireland. With an increase of over 28,300 new employees joining the industry in the past 12 months, the figures clearly demonstrate Irish economy’s reliance on the construction industry.

Construction Industry Federation (CIF) spokesperson Peter Stafford welcomed the figures saying: “These figures from the CSO demonstrate the continued growth of the construction sector in Ireland and the vibrancy of the industry. The CIF is confident in the future of the construction industry and the continued growth in employment demonstrates clearly the capacity of the industry to meet the needs of the economy.”
Throughout the past 12 months a total of over 28,300 new jobs were created in the construction industry and these new jobs are spread right throughout the country across all regions, bringing the total number of people working in construction to over 282,100, which is over an 11.2 per cent increase in the year to the first quarter of 2007.

The number of Irish nationals as a percentage of all workers in the industry stands at over 87 per cent and of the 28,300 new jobs in construction in the past 12 months, 16,800 were taken up by Irish nationals and 11,500 jobs went to workers from outside Ireland

UK wage increase rate hits seven year high

Wage pressures in the UK economy jumped dramatically during May, rising at an 83-month high rate.The rise is likely to concern rate-setters at the Bank of England, according to KPMG and the UK’s Recruitment and Employment Confederation (REC).
In a monthly survey of the labour market, KPMG and REC found that permanent staff salaries rose at an 83-month high rate in May as a result of hardening demand for staff and increased skills shortages.
Temporary staff pay inflation also accelerated during May to a level broadly in line with March’s 28-month peak.
Michael Carter, people services partner at KPMG says: “With demand for staff reportedly increasing but availability deteriorating, pay pressures are intensifying, particularly for permanent staff.”

UK citizens top Irish immigrant population but Poland struggling to cope with staggering mass exodus

According to the 2006 Census the number of non-Irish nationals living in Ireland now stands at 420,000 people, or 10 per cent of the population. This is almost double the number of non-nationals in living in Ireland than was the case four years ago.
Of the total, UK citizens accounted for most at just over 112,500 people followed by Polish citizens at over 63,000 people. Lithuania accounts for 24,638, while there are 16,300 Nigerians and 13,319 Latvians now living in Ireland.
While Poland and Lithuania account for the majority of new residents for the 10 new EU member states, the total number of immigrants from Central and Eastern Europe account for well in access of 100,000 people. The census figures are the first accurate picture of the numbers of foreign nationals who are now resident in Ireland.
According to a recent report on RTE’s Radio’s Morning Ireland programme Poland, which at 14 per cent, has the highest level of unemployment in the EU. It continues to lose its young skilled professionals at a very worrying rate. Mirroring the Irish experience in the 70s and 80s young skilled professionals are looking to countries such as Ireland and the UK to find good pay and experience.
Irish architecture, engineering and QS practices are opening up their arms to attract them, many practices travelling to Poland and other countries to recruit new staff. The RTE programme stated that a staggering one million people have left Poland since 2001. And even though some sectors of the Polish construction industry have experience wage inflation of 100 per cent in the past 12 months, this is not deterring young people from seeking better opportunities abroad. In response to the exodus Polish companies are now looking to Ukraine, Russia, Belarus and China to find new staff.
Of the 85,000 new jobs created in Ireland in 2006, immigrants took up sixty per cent of them.

Ireland rated 14th in relative employee earnings table

According to a new report from Federation of European Employer’s (FedEE), the pay gap between Europe's richest and poorest countries has fallen significantly over the past six years.
Employees in Denmark are the highest earning, while Moldovan employees sit at the bottom of the table of 48 countries. The Pay in Europe 2007 report states gross median hourly earnings of employees in Denmark were 65 times (65x) higher than in Moldova on February 1st 2007. This compares with a pay gap of 70x in 2006 and 91x in 2001. Since 2001, all countries in the bottom half of the FedEE league table, except Poland and Portugal, have been able to narrow the gap with Denmark.
The report also reveals differences in pay between those in senior management positions and those in unskilled service sector positions within individual countries. This differential varies from 12.9x in Moldova and 11x in Latvia to just 3.9x in Norway and 4.1x in Malta.
At the higher end of the league table, there have been falls in relative earnings in Austria, Belgium, France, Germany, Luxembourg, Spain and the UK. Norway has now taken the number two spot from Luxembourg, with relative earnings climbing from 71 per cent of Denmark's in 2001 to 90 per cent in 2007.
Ireland sits in 14th place in the table, behind Finland and the Faroe Islands, but ahead of Belgium and the United Kingdom.
The report reveals differences in pay between those in senior management positions and those in unskilled service sector positions within individual countries. This differential varies from 12.9x in Moldova and 11x in Latvia to just 3.9x in Norway and 4.1x in Malta and 4.4 in Ireland.
In the category of a Skilled Manual Workman, working in a large or foreign-owned firm, the following are comparative hourly rates in euro: Ireland €16.04; Sweden €17.34; Poland €3.43 and Moldovia 45 cent.
The Pay in Europe 2007 report provides benchmark salary data for 48 European countries. Each table contains 32 standard job positions within two categories of company size or type.
The tables can be used to produce a framework for pay relativities and an initial market guide when establishing a new operation in a particular European country. They will also be of value to those with established operations who require an objective reference point during pay negotiations, annual reviews or for general salary administration purposes.
The Federation of European Employers (FedEE) is the leading organisation for multinational employers operating across Europe.

Irish Government allocates €1bn to social housing for 2007

Minister for Housing and Urban Renewal, Noel Ahern TD, has announced that €1.013bn will be allocated go towards the provision of local authority housing in 2007.
He said the allocation of over E1bn for the provision of local authority housing provides for work in progress on over 8,300 housing units and for authorities to complete construction and acquire 5,500 houses this year including new dwellings completed under regeneration projects.
Minister Ahern said the funding was the highest ever allocated for the main local authority housing construction and acquisition programme.
" I would anticipate that some 7,000 housing units should be started or acquired by local authorities in 2007 including new units provided in regeneration projects," he said.

Rogue employment agencies to be tackled

The Irish Government is to clamp down on rogue employment agencies supplying labour to workplaces around the country.
Under the proposed legislation all employment agencies would need a licence and have to follow a new code of practice. Compliance with the code would be a condition of securing and retaining the licence.
The new legislation would oblige agencies to pay workers the national minimum wage or rates set out in negotiated employment agreements for particular sectors.
It is thought that the legislation would also ensure that each employee must have an identifiable employer within the State who would be legally responsibility for compliance with all aspects of employment legislation. The new legislation will also define an agency and an employee.
In 2006, the Minister for Enterprise, Trade and Employment, Micheál Martin TD, criticised sub-contractors and agents who were paying staff considerably less than the rate of pay set out in registered employment agreements for particular sectors.
There are now 520 employment agencies operating in Ireland. The new legislation follows on from a commitment in the National Partnership Agreement, Towards 2016. The legislation is expected to be brought to Cabinet within the coming weeks.

Irish construction leaders prioritise infrastructure development

The Irish Construction Industry Federation (CIF) has said that the upcoming Irish Budget must recognise how important implementing the National Development Plan (NDP) is and Finance Minister Brian Cowen should borrow to finish it, if needed.
The CIF was reacting to the pre-Budget Outlook, adding that Mr Cowen's commitment to the NDP is welcome. Tom Parlon, CIF Director General says Ireland lags in infrastructure development. "We need to once and for all address definitively Ireland 's longstanding infrastructure deficits and in doing so we can help to ensure the continued economic growth that we have experienced for the last decade,” he said.
"Ireland 's ability to compete effectively at the upper end of the global economy is inextricably bound up with the quality of its public infrastructure. The quality of public and private transportation, education, health, water and wastewater, waste management, energy and environmental infrastructure impact national competitiveness and must be a priority for Government. There can be no diversion from commitments on capital expenditure, and, if required, Government must borrow and borrow up to the limits permitted by the Stability and Growth Pact to fund infrastructure development planning," he added