Home > Uncategorized > Job growth in Ireland. Meuhhh…

Job growth in Ireland. Meuhhh…

Irishjobs

According to the Irish Statistical Office, economic growth in 2015 was an unbelievable 26%. At the same time, employment increased with 2,4% or 151.000 jobs. A brisk but not exceptional pace and totally at odds with the 26% economic growth estimate. Subsectoral data underscore this anomaly: job growth was located in agriculture, tourism (food and beverage service activities) and construction. And to a much smaller extent in the computer, pharmaceutical and leasing sectors which showed, according to the institute, such an amazing growth.

  1. July 28, 2016 at 2:29 am

    John Hermann: Merijntknibbe, what is your explanation for the wide divergence between these statistical estimates? I suspect that the growth figures are invalid, presumably because some of the included items should not have been included.

    • merijntknibbe
      July 31, 2016 at 10:37 am

      According to the rules of national accounting, a subsidiary of a multinational in another country is only cosnidered a subsidiary if it’s not a postbox company but if it also owns for instance some real estate. The headquarters of some very large multinationals have been relocated to Dublin and employ as far as I know a few hundred employees and presumably own some real estate…. The profits of ordinary subsidiaries are relocated to the country of origin of the multinational, in an accounting sense. The profits of these multinationals (think: microsoft) are as these are not ordinary subsidiaries but headquarters (at least legally) relocated from (in the microsoft case) the USA to Ireland, This runs havoc with all the ,normal’ GDP ratio’s like labour income (which drops like a stone when expressed as a % of GDP but which rises in a nominal sense). There are arguments to relocate the profits of subsidiaries to the parent country. The rules take account of this. But Ireland is a topsy turvy case: multinationals are not establishing a subsdiary in Ireland but are (legally) relocating their headquarters! This was presumably not foreseen by the GDP statisticians; imo the rules have to be changed to take account of this topsy turvy case.

  2. July 28, 2016 at 9:41 am

    Really I need to know this conundrum, because in Spain is the same, but less pronounced. The case of Ireland is amazing. More or less it means an increase in productivity of more than 20%…

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