1 working in rural ireland mark o’ brien and thia hennessy mark o’ brien and thia hennessy rural...

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Working in Rural IrelandWorking in Rural Ireland

Mark O’ Brien andMark O’ Brien and Thia Thia HennessyHennessy

Rural Economy Rural Economy Research Centre, Research Centre, AthenryAthenry

This research is funded by the Research Stimulus Fund 2005

22

OutlineOutline Changing Sectors of EmploymentChanging Sectors of Employment

Regional ImplicationsRegional Implications

Changing Role of AgricultureChanging Role of Agriculture

Emergence of Part-Time FarmingEmergence of Part-Time Farming

Sustainability of Part-Time FarmingSustainability of Part-Time Farming

Longer Outlook for Labour MarketLonger Outlook for Labour Market

33

IntroductionIntroduction The structure of the Irish Labour Market has The structure of the Irish Labour Market has

transformed.transformed.

Traditional sectors (e.g. Agri & Industrial Traditional sectors (e.g. Agri & Industrial Production) have declined in importanceProduction) have declined in importance

The decline in the importance of these sectors has The decline in the importance of these sectors has been replaced by;been replaced by; Electronics.Electronics. Pharmaceuticals and medical instrumentation.Pharmaceuticals and medical instrumentation. Construction.Construction. Tourism.Tourism. Internationally traded financial sectors.Internationally traded financial sectors.

44

Annual Average Employment Growth by Sector, 2000-2005 and 2004-Annual Average Employment Growth by Sector, 2000-2005 and 2004-2005 2005

Source: CSOSource: CSO

-5 0 5 10 15 20

Construction

Health

Other Services

Fin & Other Bus Services

Education

Manuf & other ind

Agri., For & FishGrowth 2004-2005

Growth 2000-2005

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Are the changes in employment regionally Are the changes in employment regionally balanced?balanced?

The country is divided into 3 regions:The country is divided into 3 regions: DMEDME which comprises of Dublin and the Mid-East. which comprises of Dublin and the Mid-East. BMWBMW which is the Border, Midlands and West region. which is the Border, Midlands and West region. RESTREST region which is composed of the Mid West, South region which is composed of the Mid West, South

East and South West.East and South West.

Employment by SectorEmployment by Sector


66

Employment in Regions by Sector 2005Employment in Regions by Sector 2005


9 811

17 1711

15 13

20

20

40

60

80

100

DME BMW REST

Construction

Oth Prod Ind

Agri, Forestry& Fishing

77



9 811

17 1711

15 1320

8 10

20

20

40

60

80

100

DME BMW REST

Financial &Oth BusServices

Construction

Oth Prod Ind


88



9 811

17 1711

15 1320

8 10

1716 17

20

20

40

60

80

100

DME BMW REST

Education &Health

Financial &Oth BusServices

Construction

Oth Prod Ind


99


9 811

17 1711

15 1320

8 10

1716 17

39 35 35

20

20

40

60

80

100

DME BMW REST

Other

Education &Health

Financial &Oth BusServicesConstruction

Oth Prod Ind



1010


BMW and REST more reliant on traditional industries.BMW and REST more reliant on traditional industries.

These regions are also dependent on construction?These regions are also dependent on construction?

DME has more knowledge based jobs.DME has more knowledge based jobs.

Can Rural Areas compete for knowledge based jobs?Can Rural Areas compete for knowledge based jobs?

Forfás predict that 68% of new employment in the Forfás predict that 68% of new employment in the period 2004 to 2010 will require third level period 2004 to 2010 will require third level qualifications.qualifications.

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Educational Attainment Levels of regionsEducational Attainment Levels of regions

Source: CSO Census 2002Source: CSO Census 2002

1927 22

49

5255

3221 23

0%

20%

40%

60%

80%

100%

DME BMW REST

3rd Level

Secondary

Primary

1212

The Changing Role of The Changing Role of AgricultureAgriculture

1313

OutlineOutline

Decreasing numbers employed in Decreasing numbers employed in AgricultureAgriculture

More farmers relying on Non-Farm IncomeMore farmers relying on Non-Farm Income

Policy accelerating this shiftPolicy accelerating this shift

Sustainability of this trend?Sustainability of this trend?

1414

Employment in Agriculture 1985-2004Employment in Agriculture 1985-2004


0

2

4

6

8

10

12

14

16

1985 1990 1995 2000 2004

Agriculture as a %of totalemployment

1515

Increased reliance on Off-farm IncomeIncreased reliance on Off-farm Income

Percentage of Farm Households with off-farm jobs, 1993-Percentage of Farm Households with off-farm jobs, 1993-20052005

Sources:Sources: Teagasc (National Farm Survey) Teagasc (National Farm Survey)

0

10

20

3040

50

60

70

80

90

100

1993 1997 2001 2005

Holder or Spouse(%)

Holder (%)

Spouse (%)

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Economic Groupings Of FarmsEconomic Groupings Of Farms

Viable:Viable: A farm is economically viable if it can; A farm is economically viable if it can; (a) remunerate family labour at the average agricultural (a) remunerate family labour at the average agricultural

wage, wage, andand (b) provide a 5 per cent return on non-land assets.(b) provide a 5 per cent return on non-land assets.

Sustainable:Sustainable: Farms may be non-viable but farmer Farms may be non-viable but farmer

and/or spouse may work off farm.and/or spouse may work off farm.

Vulnerable:Vulnerable: Non-viable farms where neither farmer nor Non-viable farms where neither farmer nor

spouse work off-farmspouse work off-farm

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Viability of FarmingViability of Farming The Agri-Vision 2015 report concluded that:The Agri-Vision 2015 report concluded that:

1. The number of economically viable farm businesses is 1. The number of economically viable farm businesses is in decline.in decline.

2. A large number of farm households are sustainable 2. A large number of farm households are sustainable only because of the presence of off-farm income.only because of the presence of off-farm income.

NFS 2004 data show; NFS 2004 data show; 30 per cent of the farms were economically viable.30 per cent of the farms were economically viable. 54 per cent were sustainable.54 per cent were sustainable. 16 per cent were vulnerable.16 per cent were vulnerable.

Without off-farm employment, 70 per cent of the Without off-farm employment, 70 per cent of the farm families would be in a vulnerable position.farm families would be in a vulnerable position.

The long term sustainability of farming depends The long term sustainability of farming depends on the availability of off-farm employment. on the availability of off-farm employment.

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Impact of PolicyImpact of Policy

Decoupling reduced the return to farm labour.Decoupling reduced the return to farm labour.

Our Economic Modelling suggests more farmers Our Economic Modelling suggests more farmers and spouses will seek off-farm employment.and spouses will seek off-farm employment.

Will they be able to secure jobs in the ever Will they be able to secure jobs in the ever changing economy?changing economy?

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Current Employment - OperatorCurrent Employment - OperatorEmployment by Sector for Farm OperatorsEmployment by Sector for Farm Operators

Source: NFSSource: NFS

0

20

40

60

80

100

Agriculture Construction Manufacturing Services Other

2020

Future Employment - OperatorFuture Employment - Operator

50% of farm operators are employed in traditional 50% of farm operators are employed in traditional industries and construction.industries and construction.

The Outlook for these sectors is not good – as The Outlook for these sectors is not good – as Jasmina Behan will outlineJasmina Behan will outline

Educational attainment levels are a good Educational attainment levels are a good indicator to the ability to attain non-farm indicator to the ability to attain non-farm employment in the changing economyemployment in the changing economy

2121Source: CSO

Education Profile of Working Age Farmers (2004)Education Profile of Working Age Farmers (2004)

0

10

20

30

40

50

60

70

80

90

100

NoFormal/Primary

LowerSecondary

UpperSecondary

Post LeavingCert

Third Level

15-65

55-65

2222

Current Employment - SpouseCurrent Employment - Spouse

14 139 8 6

30

20

0

5

10

15

20

25

30

35

Source: NFSSource: NFS

Employment by Sector for Spouses

2323

Employment ProspectsEmployment Prospects

Farmers employed in traditional industries and Farmers employed in traditional industries and constructionconstruction

Long term prospects poorLong term prospects poor

Re-training requiredRe-training required

Spouses mostly employed in Education & Health.Spouses mostly employed in Education & Health.

Better Long Term Prospects.Better Long Term Prospects.

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ConclusionsConclusions Changing Structures of Employment. Changing Structures of Employment.

Traditional industries in decline.Traditional industries in decline.

Regions such as BMW and REST more reliant on traditional Regions such as BMW and REST more reliant on traditional industries and construction.industries and construction.

The number of economically viable farm businesses is in The number of economically viable farm businesses is in decline.decline.

Farm operator’s off-farm employment tended to be Farm operator’s off-farm employment tended to be employed in the more “traditional” sectors and construction employed in the more “traditional” sectors and construction - Sectors in decline.- Sectors in decline.

Farm Operators have low levels of educationFarm Operators have low levels of education

Therefore re-training of farm operators is requiredTherefore re-training of farm operators is required..

1 working in rural ireland mark o’ brien and thia hennessy mark o’ brien and thia hennessy rural...

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