In this week’s public policy bulletin, we take a look at the latest statistics on employment levels and pension coverage in the State. We also examine the UK government’s launch of a new investment in Northern Ireland’s cyber security industry as well as the latest Labour Force Survey results for the region. In addition, we review inflation levels across the Eurozone as reported this week by Eurostat.
Record employment levels reported in fourth quarter of 2022
According to the latest Labour Force Survey statistics released by the CSO, 68,600 new jobs were created in Ireland in the 12 months to quarter 4 2022. Total employment currently stands at 2.57 million – representing the highest number of persons employed in the State since the CSO’s Labour Force Survey began in 1998. The latest survey also outlines how the regions have largely driven the current jobs growth - with employment outside of Dublin increasing by 61,500 in the year to quarter 4 2022. While most economic sectors had greater numbers in employment in Q4 2022 than when compared to pre-pandemic levels, some sectors saw decreases in employment such as education (down 3.2 percent) and agriculture (down 5.7 percent).
Two thirds of workers have some form of pension coverage outside of State pension
Two thirds of people aged between 20 and 69 have some form of private pension on top of the State Pension, according to a new report from the CSO. Of this cohort, 73 percent have an occupational pension only, 10 percent have a personal pension only while approximately 17 percent report having both. Of the occupational schemes, 62 percent were defined contribution, 32 percent were defined benefit and 6 percent were hybrid (i.e. a combination of defined benefit and defined contribution type schemes). Overall levels of pension coverage however remain largely unchanged from 2021, with the greatest level of coverage being seen amongst workers aged 45-54 (77 percent) and the lowest degree of coverage reported amongst workers aged 20-24 (31 percent).
UK government announces £18.9 million investment in Northern Ireland’s cyber security industry
The UK Government has announced an £18.9 million investment in NI’s Cyber Security industry, including £11 million Government funding through the New Deal for Northern Ireland, to develop a pipeline of cyber security professionals in NI as well helping businesses and start-ups develop new opportunities. The investment will see the creation of a new Cyber-AI Hub at the Centre for Secure Information Technologies (CSIT) in Belfast designed to create jobs and support the research and development of AI-enabled cyber security projects in the region. In addition, the programme of investment will involve the creation of a Doctoral training programme and Masters degree bursaries designed to deliver on the Government’s pledge of creating 5,000 cyber professionals in NI by 2030.
Latest Northern Ireland NEET statistics released (young people who are not in education employment or training)
According to the latest Labour Force Survey released by the NI Statistics and Research Agency, there were an estimated 18,000 young people aged 16 to 24 years in Northern Ireland who were not in education, employment or training (NEET) in October to December 2022. This was equivalent to 9 percent of all those aged 16 to 24 years in the region. By comparison, the proportion of young people who were NEET in the UK during the same period was 11.6 percent. In October to December 2022 there were an estimated 13,000 young people aged 16 to 24 years in Northern Ireland who were NEET and who were not looking for work and/or not available to start work (economically inactive).
Rate of inflation reduces across Euro zone in January
Inflation in the Euro area stood at 8.6 percent in January 2023, down from 9.2 percent in December according to Eurostat, the statistical office of the European Union. Overall, annual inflation fell in eighteen Member States while rising in nine. The lowest rates were registered in Luxembourg (5.8 percent), Spain (5.9 percent), Cyprus and Malta (both 6.8 percent) while the highest rates were recorded in Hungary (26.2 percent), Latvia (21.4 percent) and the Czech Republic (19.1 percent). According to the Eurostat findings, inflation in Ireland (as measured by the Harmonised Index of Consumer Prices which allows for comparisons across the EU) stood at 7.5 percent. The full report can be accessed here.