Oireachtas Joint and Select Committees

Tuesday, 26 May 2015

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

All-Island Economy: Discussion (Resumed)

1:30 pm

Dr. Tom Healy:

This comes from a keen sense of urgency and the priorities at regional and sub-national levels. In recent times, especially following the crisis of 2008 onwards, it seemed the priorities were to create employment, to maintain investment and to grow exports without paying as much attention to the regional aspect as was previously the case. There is evidence that some regions, particularly the north west area of the island, have lost out in respect of some of the welcome jobs recovery since 2012. It is still early days but the growth rates are less than impressive in some parts of the west.

The pattern of labour force participation has developed somewhat differently in some regional areas, including the Border areas where there is a high level of what some economists call "labour market inactivity". This is perhaps not the best term but it simply means that people are not in work or seeking paid work. It is a complex issue which reflects the structure of the population and many other factors but it is a concern because not only are there disparities in income per capita, as Mr. Paul Mac Flynn has pointed out, there is also a higher level of dependency on fiscal transfers within each jurisdiction, something which maybe gets lost in the bigger picture.

There is a need to focus on particular areas of vulnerability, which seem to be particularly acute as one moves westwards from Armagh, up around Fermanagh and into Donegal, where there are pockets of considerable deprivation and disadvantage.