National Economic Strategies Must Address Employment Challenges of Areas Beyond Large Cities - WDC

Concerted action will be required if the Western Region, particularly the more rural northern part, is to participate in the move towards a ‘smart economy’.  If this does not happen, the regional development gains of the past decade could be lost and the gap between the east and west of the country could widen even further with the Western Region less able to contribute to national growth.

That’s according to a new report from the Western Development Commission (WDC).  The report Work in the West: The Western Region’s Employment & Unemployment Challenge examines the current employment and unemployment situation in the Western Region, analyses the resulting key challenges and makes recommendations on what needs to be done to position the region for future growth.

Lisa McAllister, Chief Executive of the WDC said: “Current economic and regional policy is tending to increasingly focus on the role and potential of the larger cities and this focus stems from the perception that balanced regional development is a redistribution of national resources, rather than regional development itself being recognised as an integral element of national growth.”

The report found that between 2000 and 2009, the strongest employment growth in the region was experienced in the construction, retail and wholesale, and public services sectors.  The unemployment rate has more than doubled in the Western Region from 5.0% (Q1 2008) to 10.8% (Q1 2009) in the course of a year.  The structure of employment in the region has also changed over the past ten years with employment in urban areas performing more strongly than in rural areas.  

During the boom years, in addition to expanding employment, there were considerable improvements in the education level of the region’s workforce with the share of the population with a third level qualification rising from 18.9% to 28.2% (2002-2008).  The report states that the region now has a stronger human resource base to drive economic growth.

Ms McAllister added that the report found that in general, the region (in particular north of Galway city) is not as well placed in the move towards an increasingly knowledge-based or ‘smart economy’ as it has a higher share of its employment in sectors which tend to be lower skilled, lower value-added and more vulnerable to the recession and lower shares working in the higher skilled and high value-added sectors (e.g. financial services, information and communications services) than the rest of the state.  

She said that the Western Region’s future growth is not only critical for the region itself but for the country as a whole.  “The risk of not developing the Western Region’s economy could mean that the region would depend on transfers from the rest of the country for its economic and social sustainability.  However, a vibrant and thriving regional economy will contribute to national recovery.”

Ms McAllister added: “National growth and regional development are not an either/or choice.  If regions are not facilitated to grow they may suffer higher and longer term unemployment and create very significant difficulties for the people and communities directly affected.”