21 May 2018 | 09.19 am
100,000 Will Join Workforce Due To Growth
Consumer Market Monitor from MII
21 May 2018 | 09.19 am
The latest Consumer Market Monitor report from the Marketing Institute of Ireland estimates that professional and technical services such as architecture and engineering are still 13% below their peak in 2007.
The survey was carried out in conjunction with UCD’s Graduate Business School.
Professor Mary Lambkin commented: “Professional services showed the most dramatic boom and bust cycle. In particular, architecture and engineering firms, which were inextricably tied to the fortunes of construction, suffered significantly in the economic downturn. In spite of an estimated 19,000 new homes built in Ireland last year, house building in Ireland is still among the lowest in Europe, and this has affected growth in this sub-sector.”
Marketing Institute chief executive Tom Trainor (pictured) commented: “All of the economic fundamentals in the Irish economy remain strong with continuing growth in employment and modest wage increases being the primary drivers of growth.”
Sales of residential properties rose 7% to 51,700 last year, the highest level since the recession. Transactions are up by a further 5% in the first months of 2018, suggesting a final figure of about 55,000 for the year. There has also been an increase in the number of new homes being built — an estimated 19,000 were built last year, expected to increase to 21,000 in 2018.
Most service sub-sectors recorded growth for the past year, and again in Q1 2018, suggesting a positive picture for the rest of the year. Service sub-sectors grew as follows in 2017: Professional, Scientific and Technical (+11.9%), Administrative Support (+8.5%), Wholesale and Retail (+5.2%), Accommodation and Food Service (+3.2%).
Weaker sectors were: Transportation and Storage (+1.6%) and Information and Communication (+1.9%). The survey concludes from the continued growth that employment numbers could increase by 100,000 by the end of 2019.
There has been considerable variation in the recovery paths of different sectors over the decade. Information and communication — including mobile phone and internet services – have shown linear growth and are now 60% higher than a decade ago.
Accommodation and food services have done next best, growing rapidly from 2014 to 2016, but levelling off since then. The 2017 index is 30% up on 2008, a strong performance.
Professional services showed the most dramatic boom and bust cycle. This includes architecture and engineering, tied to the fortunes of construction, as well as advertising and legal and accounting services, all of which suffered significantly in the recession.