1 Adult No Children Source EU SILC 2003, 2006. 2003 2006 4.2 45 40 35 30 25 20 15 10 5 0 2 Adults
No Children 3 or More AdultsNo Children
1 Adult with 3 Children 2 Adults with 1-3 Children Other households with Children 4.5 4.3 6.7 4.9 40.3 40.8 12.2 10.3 11.5 11.9 % 4.1
To date, Ireland has had one of the lowest percentages of national income going on social transfers in the EU. A number of reasons have been advanced to explain this: a lower proportion of the population are of pension age and a low unemployment rate. The ‘welfare regime’ adopted by Ireland also has an influence. This has been classified by Esping-Anderson (1990) as ‘liberal’ and subsequently described by NESC (2005b) as ‘hybrid’.59 With the economic downturn, an increasing number
of people are becoming reliant on social welfare benefits, particularly Jobseekers Benefit and Jobseekers Allowance.
Summary
Incomes in Ireland grew substantially from the mid 1980s to the mid 2000s. Income inequality in Ireland, which was just above the OECD average in the mid 2000s, remained fairly stable during the period of rapid growth in incomes, although incomes at the very top of the income distribution seem to have increased substantially. Numbers in income poverty remained high as poverty thresholds rose with income growth, and while the situation of those on social welfare improved, this was not at the same rate as those in employment. There was a reduction in the numbers in consistent poverty, driven by falls in deprivation. However, it is worth noting that some population groups had relatively high levels of consistent poverty – lone parents, the unemployed and people who were ill or disabled. Associated issues were the number of people who were in work who were at risk of poverty (the ‘working poor’) and the high levels of debt among some groups in the population, especially households with children and lone parents in particular. The economic downturn may accentuate these problems.
4.4 Work and Participation
Unemployment
Participation in work and education are important for well-being. One of the most damaging influences on individual and societal well-being is unemployment. Figure 4.11 shows the sharp decline in unemployment in Ireland from 1988 to 2007. In the late 1980s high unemployment pervaded Ireland with unemployment rates over 15 per cent, and many people unemployed for a year or more. The 1990s saw a massive decline in unemployment and long-term unemployment, with Ireland having one of the lowest unemployment rates in Europe at just under 4 per cent and long term unemployment at 1.2 per cent in the early 2000s. With the recent sharp downturn in the economy, these rates are now starting to rise with an unemployment rate of 6.4 per cent for 2008, the highest rate since 1998.60 The
latest available estimates show unemployment at 10.2 per cent in Q1 2009 (CSO, 2009e), with the ESRI forecasting an overall rate of 12.6 per cent for the year, rising to 16.1 per cent in 2010 (Barrett et al., 2009b).
59. Hybrid can be taken to mean Ireland’s mix of means-tested, insurance-based and universalist income support and service arrangements. It can also be used to describe Ireland’s broad range of organisations (state, private and community/voluntary) who provide Ireland’s social services. This has been described as a ‘mongrel’ welfare system of mixed parentage (NESC, 2005b: 35). 60. The seasonally adjusted rate was 7.7 per cent in Q4 2008, up from 6.4 per cent in Q3 (QNHS results Q4 2008, published on 27th
Throughout the country all regions have seen increases in unemployment with an unemployment rate of 10 per cent in the Midlands and 8.9 per cent in the West, compared to a national rate of 7.7 per cent (for the period September – November, 2008 CSO, 2008e). Unemployment rates have increased for both men and women standing at 9.2 per cent for men and 5.4 per cent for women in Quarter 4, 2008. Non-Irish nationals had a higher unemployment rate than Irish nationals: 9.5 per cent compared to 7.3 per cent (for Q4, 2008).
Employment
The decline in unemployment from the mid 1980s to the mid 2000s was mirrored by an increase in employment. The percentage of 15-64 year olds in employment grew from 52.3 per cent in 1988 to 69 per cent in 2007. The increase was particularly marked for women whose participation rate almost doubled over the period, increasing from 34.4 per cent in 1988 to 60.5 per cent in 2008, see Figure 4.12. In the last quarter of 2008 the employment rate for all 15-64 year olds fell to 65.8 per cent, bringing the employment level back to a rate comparable to 2004. The employment rate for men fell to 72.6 per cent in the last quarter of 2008 (down from 77.1 per cent in 2007) and fell to 59.0 per cent for women (CSO, 2009a).
Source CSO, various tables.
Figure 4.11
Unemployment in Ireland, 1988-2008
18 16 14 12 10 8 6 4 2 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 8.3 16.3 12.9 15.7 3.6 6.4 10.4 9 1.2 1.5
Unemployment Long term Unemployment %
Over the 1990s and early 2000s there was evidence of occupational upgrading with ‘expansion of professional, technical and managerial occupations and increased importance of education and skills’ (O’Connell and Russell, 2007: 64). There was also growth in lower grade occupations, in particular, an ‘increase in personal service, sales and unskilled manual occupations, providing some support for a polarisation process’ (O’Connell and Russell, 2007: 64). These occupational changes were accompanied by an increase in part-time working, with the majority of part-time workers being women, mainly in lower skilled occupations. Some of these changes were reflected in wage rates. Information from the National Employment Survey 2007 showed that nearly two-thirds of all employees earned less than €20.08 per hour,61 with 13.6 per cent earning less than €10 per hour.62 In the hotel and restaurants sector 91 per cent of workers earned less than €20 per hour (CSO, 2009c).
61. Mean hourly earnings.
62. The median hourly earnings figure was €16.29.
Figure 4.12
Employment in Ireland for Persons Aged 15-64, 1988-2008
Source CSO, various tables.
90 80 70 60 50 40 30 20 10 0 70.8 34.4 75.6 60.5 Men Women 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 %
The recession has seen a decline in employment across occupational groups. Hardest hit has been the construction sector where there was a decline of 16.5 per cent over 2008. Annual decreases in employment were also recorded in the wholesale and retail trade, other production industries, financial and other business services, hotels and restaurants, and agriculture, forestry and fishing services (CSO, 2009a). Some sectors saw small increases in employment over 2008, including education, health and other services. The declines in employment across most sectors have led to job losses across occupational groups. As stated earlier, job losses have negative impacts on well-being.
Job Satisfaction
These trends raise issues about the quality of employment and the impact of working conditions on job satisfaction and well-being. A report by the European Foundation for the Improvement of Living and Working Conditions (2007) found that the most important element was to have a job in the first place, as life satisfaction is lowest among unemployed people. In the poorer Member States of the European Union the key issues were levels of pay and job security. In the more affluent Member States (including Ireland) intrinsic rewards such as interesting work, autonomy and career prospects were important for job and subsequently life satisfaction. The OECD has recently reported that across OECD countries job security is the attribute most valued by workers (OECD, 2009: 123).63 They found
this to be the case for Ireland, with 94 per cent of respondents citing job security as an important job attribute. Other job attributes valued by Irish respondents were opportunities for advancement (88 per cent), high income (79 per cent) and working time flexibility (58 per cent).
O’Connell and Russell (2007) examined evidence on the quality of employment in Ireland. Not surprisingly they found variation across occupational groups. Those in professional and technical occupations had relatively high levels of autonomy and job satisfaction even though they experienced some increased work pressure. In lower occupational grades, such as personal and protective services and sales, there were lower levels of job satisfaction, but this was accompanied by lower levels of work pressure. Part-time employment, in general, was characterised by low levels of work pressure and high levels of job satisfaction, especially where part-time work was voluntary. Overall, ‘there was little evidence of a deterioration in job quality in recent years or indeed of a significant improvement over time’ (O’Connell and Russell, 2007: 66).
63. Based on International Social Science Programme Work Orientation, Wave III (2005). The survey is addressed to people aged 16 and over working either as an employee or self-employed.
Educational Achievement
As well as participation in work, participation in education is important to well- being, with the two being inextricably linked. Education is also important in its own right, contributing to human flourishing through the acquisition of knowledge, development of capabilities and boosting confidence. Educational qualifications lead to a greater chance of being employed, with higher qualifications and skills resulting in higher quality jobs. One of the most striking changes in educational achievement in Ireland from 1991 to 2006 was the increase in third level qualifications, see Figure 4.13. In 1991, 13 per cent of the population had third level qualifications; this had more than doubled to 29 per cent in 2006. The increase for women was particularly remarkable, rising from 13 per cent to 32 per cent: almost one-third of women having a third level qualification in 2006. Men lagged someway behind with 26 per cent having a third level qualification in 2006.
64. People with third level qualifications (non degree, degree and higher qualifications) and whose education has ceased. Figure 4.13