Category Archives: Irish labor force

12/6/19: Irish Self-Employment Data: What It Says About the Entrepreneurial Nation


Official Ireland is quick to promote Irish indigenous entrepreneurship as evidence of a diversified economy, with domestic risk-takers bent on capturing international markets with new, innovation-intensive and modern goods and services. The reality, of course, is somewhat different. In 2017, based on the IMF estimate, sales of iPhones (not physically manufactured in Ireland at all) accounted for 25% of the state's GDP growth. And, on the other side, domestic self-employment, the cradle of entrepreneurship, has been on a decline.

Here are the latest statistics and trends:


Share of Irish labour force participants in employment that were engaged in self-employment has declined, on trend, from the late 1990, as did the share of those in self-employment with employees has been down-trending since around 2000-2001.  Some might think that the trend is driven by the self-employed construction workers, but that is not the case, since they bump in share of all self-employed run below the trend line in 2003-2006, and many of these workers exited employment in the crisis.

What about self-employed as the share of overall relevant (age 15 and older) population? Similar trends:

Current total self-employment share in overall population is on-trend, and that trend is down, not up. Self employment with employees trend is similar.

So about that entrepreneurship, and about the claims that the younger generations are becoming even more entrepreneurial, and about all those universities and ITs offering vast arrays of entrepreneurship programs, and about the preaching of entrepreneurial ethos and values... ahem...

20/2/19: Broader Measures of Irish Unemployment 4Q 2018


The latest Labour Force Survey for 4Q 2018 for Ireland, published by CSO, shows some decent employment increases over 2018, and a welcomed, but shallow, rise in the labour force participation rates. Alongside with a decrease (over FY 2018) in the headline unemployment rate, these are welcome changes, consistent with overall economic growth picture for the state.

One, much less-reported in the media, set of metrics for labour markets performance is the set of broader unemployment measures provided by the CSO. These are known as Potential Labour Supply stats (PLS1-PLS4). The measures also show improvements over 2018, just in line with overall employment growth. However, these measures clearly indicate that after 11 years running, the 2008-2014 crises remain still evident in the labour force statistics for Ireland.

Here is a chart of all four PLS measures, compared to their pre-2008 averages:

Note: Increase in PLS2-PLS4 series at 3Q 2017 is down to change in assessment methodology under the LFS replacing QNHS, with data pre-3Q 2017 adjusted to reflect that change by the CSO.

As a reminder, the above data series are defined as:

  • PLS1 adds discouraged workers. These are individuals who are out of work but who have become disillusioned with job search. 
  • PLS2 includes all individuals in Potential Additional Labour Force (PALF). The PALF is made up of two groups: persons seeking work but not immediately available and persons available to work but not seeking, of which discouraged workers make up the largest number. 
  • PLS3 includes all those in the previous two categories (PLS1 and PLS2) along with persons outside the labour force but not in education or training. 
  • PLS4 is the broadest measure of unemployment or potential labour supply and is calculated by adding part-time underemployed workers to PLS3. Part-time underemployed workers are individuals currently working part time who are willing and available to work additional hours. The broadest measure of unemployment (PLS4) stood at 13.7 per cent in 4Q 2016. At 4Q 2017 it was 18.7 per cent and by 4Q 2018 it was down to 17.5 per cent.

20/2/19: Broader Measures of Irish Unemployment 4Q 2018


The latest Labour Force Survey for 4Q 2018 for Ireland, published by CSO, shows some decent employment increases over 2018, and a welcomed, but shallow, rise in the labour force participation rates. Alongside with a decrease (over FY 2018) in the headline unemployment rate, these are welcome changes, consistent with overall economic growth picture for the state.

One, much less-reported in the media, set of metrics for labour markets performance is the set of broader unemployment measures provided by the CSO. These are known as Potential Labour Supply stats (PLS1-PLS4). The measures also show improvements over 2018, just in line with overall employment growth. However, these measures clearly indicate that after 11 years running, the 2008-2014 crises remain still evident in the labour force statistics for Ireland.

Here is a chart of all four PLS measures, compared to their pre-2008 averages:

Note: Increase in PLS2-PLS4 series at 3Q 2017 is down to change in assessment methodology under the LFS replacing QNHS, with data pre-3Q 2017 adjusted to reflect that change by the CSO.

As a reminder, the above data series are defined as:

  • PLS1 adds discouraged workers. These are individuals who are out of work but who have become disillusioned with job search. 
  • PLS2 includes all individuals in Potential Additional Labour Force (PALF). The PALF is made up of two groups: persons seeking work but not immediately available and persons available to work but not seeking, of which discouraged workers make up the largest number. 
  • PLS3 includes all those in the previous two categories (PLS1 and PLS2) along with persons outside the labour force but not in education or training. 
  • PLS4 is the broadest measure of unemployment or potential labour supply and is calculated by adding part-time underemployed workers to PLS3. Part-time underemployed workers are individuals currently working part time who are willing and available to work additional hours. The broadest measure of unemployment (PLS4) stood at 13.7 per cent in 4Q 2016. At 4Q 2017 it was 18.7 per cent and by 4Q 2018 it was down to 17.5 per cent.