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QEF Spring 2012 (FINAL 26Mar) MC edits · QEF is to provide regular, accessible and timely...
Transcript of QEF Spring 2012 (FINAL 26Mar) MC edits · QEF is to provide regular, accessible and timely...
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ISSN 2009-4671
Spring 2012
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AboutNERIandthispublicationThe Nevin Economic Research Institute (NERI) has been established to provideinformation, analysis and economic policy alternatives. Further information aboutNERImaybeobtainedatourwebsitewww.NERInstitute.netThis is the firstQuarterlyEconomic Facts (QEF) of the Institute.Thepurposeof theQEFis toprovideregular,accessibleandtimelystatistical informationsoastoequiptradeunionsandothersinunderstandingeconomictrendsandcomparisons.Alldataaresourced fromofficialsourceswithaclear linktothewebsiteorpublication fromwheretheyaredrawn.Everycarehasbeentakentoensurethatthedatawerevalidatthetimeofthisrelease.This first releaseofQuarterlyEconomicFacts is complementedbyanotherrelease–QuarterlyEconomicObserverwhichisavailableontheNERIwebsite.InthepreparationofthisQEFthefollowingstaffoftheInstitutewereinvolved:TomHealy,MicheálCollins,PaulMacFlynnandRoryO’Farrell.WhilethispublicationistheresponsibilityoftheNERIthehelpanddirectcontributionofthefollowingcolleaguesin various trade unions associated with NERI is acknowledged and appreciated:LorraineMulligan,MarieSherlock,PaulSweeneyandMichaelTaft.
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The Nevin Economic Research Institute
Quarterly Economic Facts
Spring 2012
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Overview ................................................................................................................................3
1 PeopleinPaidWork..................................................................................................................5
Indicator1.1aEmploymentandUnemploymentTrendsintheRepublicofIreland ..............................................................................................................................................7 Indicator1.1bEmploymentandUnemploymentTrendsinNorthernIreland....9 Indicator1.2aEmploymentChangebySectorintheROI–PeaktoPresent......11 Indicator1.2bEmploymentChangebySectorinNorthernIreland–PeaktoPresent ...........................................................................................................................................13 Indicator1.3EmploymentVolatilitysince2008............................................................15
2 PeopleoutofWork.................................................................................................................17
Indicator2.1TheRateofUnemploymentacrossEuropeanUnionMemberStates ...........................................................................................................................................19 Indicator2.2RatesofUnemploymentamongYoungPeopleacrossEuropeanUnionMemberStates................................................................................................................21 Indicator2.3Long‐termUnemploymentTrends(RepublicofIreland)...............23 Indicator2.4Under‐employmentacrossEuropeanUnionMemberStates........25 Indicator2.5Under‐employmentoverTime(RepublicofIreland).......................27 Indicator2.6UnemployedPersonsperJobVacancy....................................................29
3 LabourCosts.............................................................................................................................31
Indicator3.1aCostofEmployingLabouracrossAdvancedEUeconomies(EU15) ...........................................................................................................................................33 Indicator3.1bHowmuchdoesitcosttoemploylabourintheAccommodationandFoodsectorsacrosssomeadvancedEUeconomies?(EU15)..........................35 Indicator3.2ComparingLabourCostsintheCivilServiceacrossOECDcountries(ClericalOfficer)......................................................................................................37
4 DistributionofIncomeandWealth...................................................................................41
Indicator4.1IncomeInequalityoverTime......................................................................43 Indicator4.2WealthperCapita............................................................................................45 Indicator4.3ShareofWagesinTotalIncome.................................................................47
5 PovertyandSocialExclusion..............................................................................................49
Indicator5.1PovertyandDeprivationintheRepublicofIreland..........................51 Indicator5.2ChildPovertyintheROI................................................................................53 Indicator5.3InWork‐PovertyintheROI.........................................................................55
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6 SocialWelfarePayments......................................................................................................57
Indicator6.1UnemploymentBenefitsComparedtoEarnings(forOECDcountries).......................................................................................................................................59 Indicator6.2UnemploymentBenefitsComparedtoEarningsintheRepublicofIrelandandtheUnitedKingdom...........................................................................................61
7 PublicFinances........................................................................................................................63
Indicator7.1 TrendsinPublicExpenditureandRevenue(EU27andRepublicofIreland)...........................................................................................................................................65 Indicator7.2GovernmentRevenueas%GDP(EU27andRepublicofIreland)67 Indicator7.3GeneralGovernmentDeficitas%GDP(2011)....................................69 Indicator7.4GeneralGovernmentDebtas%GDP........................................................71
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OverviewRecentyearshaveseenahugegrowthinthesupply,rangeandtimelinessofdatafromavarietyofofficialagenciesincludingtheCentralStatisticsOffice(CSO),theNorthernIreland Statistics and Research Agency (NISRA), Eurostat, the Organisation forEconomic Cooperation and Development (OECD), the International Monetary Fund(IMF) aswell as other agencies.Much of the data are publicly and readily availableonlinetogetherwithdetailednotesaboutthedata.TheQEFisnotintendedtoprovideanalternative to thesesources. Itprovidesa signpost toavailablesourcesofdata. Itselects a few indicators from key areas of concern: employment, unemployment,earningsandlabourcost,inequalityinincome,poverty,publicfinancesanddebt.It is intended to expand the selection of indicator over time to cover a somewhatbroaderrangeoftopicsundereachheading.However,toavoidinformationover‐load(anotinfrequentfeatureofmanyofthemajorstatisticalsources)itisplannedtokeepthe overall number of indicators shown in this and subsequent editions within areasonable and manageable size. Comments, queries and suggestions are welcomebothinrelationtothecontentaswellastheoverallscopeofthispublication.Eachindicatorislaidoutasfollows:
Definition Chart DataTable TechnicalNotesandSources.
For the purposes of comparisons across European States typically two averages areusedwherepossible:EU27forallMemberStatesandEU15forthoseMemberStatesthatwereintheUnionpriorto2004.TheseconstituteamorehomogeneousgroupintermsofGDPpercapita.Unlessotherwisestated,averagesatthelevelofEU27orEU15areunweightedmeans.Pleasenotethat,unlessotherwisespecified,allreferencesto‘Ireland’inthiseditionofQEFrefers to theRepublicof Irelandonly. It isplanned toexpenddata coverage forNorthernIrelandalongwiththeRepublicformoreindicatorsinfutureeditionsofQEF.
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1 PeopleinPaidWork
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Indicator1.1aEmploymentandUnemploymentTrendsintheRepublicofIreland
IndicatordefinedShareofemployed,unemployedandeconomicallyinactiveinpopulationofworkingageintheRepublicofIrelandReferenceperiodforlatestavailabledatausedinthisindicatoris2010.Dataextractedon13March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart1.1a Shareofemployed,unemployedand‘economicallyinactive’
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Unemployed Economically Inactive Employed
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Table1.1aTotalpopulationandshareofemployed,unemployedand‘economicallyinactive’
Totalaged15‐64
'000s Employed Inactive Unemployed1995 2,284.2 54.4% 38.2% 7.5%1996 2,334.8 55.4% 37.5% 7.4%1997 2,387.8 57.6% 36.9% 6.5%1998 2,457.2 60.6% 35.1% 5.1%1999 2,502.7 63.3% 33.4% 3.9%2000 2,546.2 65.2% 32.4% 3.0%2001 2,600.6 65.8% 32.2% 2.5%2002 2,660.8 65.5% 31.9% 2.9%2003 2,711.2 65.5% 31.7% 3.1%2004 2,761.3 66.3% 31.2% 3.1%2005 2,831.0 67.6% 29.2% 3.1%2006 2,919.3 68.7% 28.1% 3.2%2007 2,996.9 69.2% 27.5% 3.4%2008 3,041.1 67.6% 28.0% 4.4%2009 3,029.4 61.8% 29.2% 8.5%2010 3,001.8 60.0% 30.2% 9.7%
InterpretationSince 1995 there has been a gradual decline in the proportion of ‘economicallyinactive’ people. This trend has been partially reversed by the recession. The term‘economicallyinactive’isusedbyeconomistsandstatisticianstorefertopersonswhoarenotinpaidemployment(fortypicallymorethanonehourinthepreviousweekatthetimeofsurvey).Itisnotintended,here,toimplythatpersonsactivelyengagedinactivities that are not remunerated in the labour market are not contributing verysignificantlytoeconomicandsocialwell‐being.
TechnicalNotes:Thereisastatisticaldiscrepancybetweentotalpopulationaged15‐64(asrecordedintheQuarterlyNationalHouseholdSurvey)andthesumofemployed,unemployedandtheeconomicallyinactive.Theactualpercentages(ofpopulation)arepresentedinthetable,whileinthegrapheconomicallyinactiveistreatedasaresidual.Thediscrepancyisatitslargestin1997,at1%ofthepopulation.
Source(s):EurostatLabourForceSurvey(lfsi_emp,lfsi_act_a,lfsa_ugan,lfsa_igan)
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Indicator1.1bEmploymentandUnemploymentTrendsinNorthernIreland
IndicatordefinedShareofemployed,unemployedandeconomicallyinactiveinpopulationofworkingageinNorthernIrelandReferenceperiodforlatestavailabledatausedinthisindicatoris2011.Dataextractedon13March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart1.1bShareofemployed,unemployedand‘economicallyinactive’
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Unemployed Economically Inactive Employed
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Table1.1bTotalpopulationandshareofemployed,unemployedandeconomicallyinactive
Totalaged16‐64
'000s EmployedEconomically
Inactive Unemployed1995 1,003 60.4% 31.8% 7.8%1996 1,013 63.9% 29.5% 6.6%1997 1,024 64.3% 29.4% 6.3%1998 1,032 65.0% 28.9% 6.1%1999 1,039 65.1% 29.8% 5.1%2000 1,045 65.0% 30.3% 4.7%2001 1,055 65.0% 30.6% 4.4%2002 1,064 65.3% 30.3% 4.4%2003 1,072 68.6% 27.5% 3.9%2004 1,080 65.4% 30.9% 3.7%2005 1,092 67.1% 29.5% 3.4%2006 1,107 67.4% 29.5% 3.1%2007 1,121 68.7% 28.4% 2.9%2008 1,131 68.1% 28.6% 3.3%2009 1,139 64.7% 30.9% 4.4%2010 1,146 65.9% 29.2% 4.9%2011 1,152 67.0% 27.8% 5.2%
InterpretationThe high rate of economic activity is reflected in a very high claimant count forNorthernIrelandcomparedtotherestoftheUK.
TechnicalNotes:Economic Activity, Employment and Unemployment rate are all calculated as apercentageoftheWorkingagepopulation.Theterm'working‐age'referstothe16‐64populationforbothmalesandfemales.Unemploymentandeconomicallyinactivearecalculatedasresidualsfromemploymentandeconomicallyactive.Source(s):LFSKeydataHistoricalSeries(1992‐2011)here.
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Indicator1.2aEmploymentChangebySectorintheRepublicofIreland–PeaktoPresent
IndicatordefinedEmploymentatNace2sectorallevelcomparingthelevelinQ42007withcurrentemploymentlevels(seasonallyadjusted).ReferenceperiodforlatestavailabledatausedinthisindicatorisQ4of2011.Dataextractedon9March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart1.2a Employmentbysectorbetweenthepeakin2007tothelatestavailabledatain2011intheRepublicofIreland,(seasonallyadjusted)
0 100 200 300 400
Administrative and support service activities
Information and communication
Agriculture, forestry and fishing
Transportation and storage
Professional, scientific and technical activities
Other NACE activities
Public administration and defence; compulsorysocial security
Financial, insurance and real estate activities
Construction
Accommodation and food service activities
Education
Human health and social work activities
Industry
Wholesale and retail trade; repair of motorvehicles and motorcycles
Q4 2011
Q4 2007
'000s
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Table1.2aEmploymenttrends Q42007
‘000sQ42011
‘000sAdministrativeandsupportserviceactivities 82.2 64.0Informationandcommunication 70.8 76.2Agriculture,forestryandfishing 114.1 80.3Transportationandstorage 98.0 91.9Professional,scientificandtechnicalactivities 113.0 94.6OtherNACEactivities 101.4 95.2Publicadministrationanddefence;compulsorysocialsecurity
103.4 102.3Financial,insuranceandrealestateactivities 104.0 102.4Construction 262.2 107.0Accommodationandfoodserviceactivities 133.4 114.8Education 138.0 140.7Humanhealthandsocialworkactivities 220.9 237.3Industry 284.2 238.1Wholesaleandretailtrade;repairofmotorvehiclesandmotorcycles
313.8 262.9
Interpretation:The wholesale and retail sector has remained the largest employment sectorthroughouttheboomandtherecession,notwithstandingthelossofsome16.2%ofalljobsinthesectorsincepeakinginQ42007.ThreeouteveryfiveconstructionworkershavelosttheirjobsduringtheperiodQ42007toQ42011,butthereissometentativeevidencetosuggestthatthelossofdirectconstructionemploymentisnowclosetothebottom.Industrialemploymenthascontractedby18%sinceQ22008,butitrecordeditsfirstnetexpansioninemploymentinQ42011withanadditional5800employedinthesectorTechnicalNotes:TheCSO’sQuarterlyNationalHouseholdSurvey is a conductedeachweekovera totalsampleof39,000householdsandispublishedonaquarterlybasis.Thehouseholdsaresurveyedoverfiveconsecutivequarters.TheILOdefinitionofthelabourforceincludesall those employed and unemployed over the age of 15, but excludes the inactivepopulation.TheNACEcodesareemploymentsectorclassifications.Seasonallyadjusteddataisdata thathasbeen treated forcalendareffects, seasonalvariationsetc.and isarrivedusing theX‐12‐ARIMAmodel. The seasonally adjusted factor is revised eachquarterforallpreviousquarters.
Source(s):CSOQuarterlyNationalHouseholdSurvey,Q42011.
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Indicator:1.2bEmploymentChangebySectorinNorthernIreland–PeaktoPresent
IndicatordefinedEmployeejobsbyStandardIndustrialClassification(2007):allpersonscomparingthelevelinJune2007withcurrentemploymentlevels.ReferenceperiodforlatestavailabledatausedinthisindicatorisJune2011.Dataextractedon13March2012.Nextupdatedueonorbeforethethirdeditionofthispublication(bySeptember2012).Chart1.2bThechangeintheemployeejobssectorbetween2007tothelatestavailabledatain2011inNorthernIreland
0 50000 100000 150000
Agriculture, Forestry and Fishing
Mining and quarrying
Manufacturing
Electricity, gas, steam and air conditioning supply
Water supply, sewerage, waste management…
Construction
Wholesale and retail trade; repair of motor…
Transportation and storage
Accommodation and food service activities
Information and communication
Financial and insurance activities
Real estate activities
Professional, scientific and technical activities
Administrative and support service activities
Public administration and defence; compulsory…
Education
Human health and social work activities
Arts, entertainment and recreation
Other service activities
Jun‐11
Jun‐07
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Table1.2bThechangeintheemployeejobssectorbetween2007tothelatestavailabledatain2011inNorthernIreland
SICClassificationJun‐07‘000s
Jun‐11‘000s
Agriculture,ForestryandFishing 12.0 11.84Miningandquarrying 2.27 1.59Manufacturing 84.07 74.30Electricity,gas,steamandairconditioningsupply 1.93 1.41Watersupply,sewerage,wastemanagementandremediationactivities 4.67 4.93Construction 44.71 32.91Wholesaleandretailtrade;repairofmotorvehiclesandmotorcycles 125.20 125.32Transportationandstorage 24.69 25.35Accommodationandfoodserviceactivities 43.02 41.68Informationandcommunication 16.07 15.43Financialandinsuranceactivities 18.79 19.24Realestateactivities 6.96 6.65Professional,scientificandtechnicalactivities 22.97 23.51Administrativeandsupportserviceactivities 38.93 42.32Publicadministrationanddefence;compulsorysocialsecurity 58.90 56.87Education 73.24 71.32Humanhealthandsocialworkactivities 113.79 115.87Arts,entertainmentandrecreation 13.58 14.61Otherserviceactivities 13.78 13.74Total 719.59 698.89
InterpretationOveralltotalemploymenthasfallenby3%.Thefallinconstructionwas26%and11%inmanufacturing.
TechnicalNotes:Estimates of the number of employee jobs are obtained from the QuarterlyEmploymentSurvey.Estimatesoftotalemployeejobsshouldbeaccuratetowithin+/‐1%oftheCensusofEmploymenttotal. Itshouldbenotedthatthesurveycountsthenumberofjobsratherthanthenumberofpersonswithjobs.Overallemployment(i.e.employeeandself‐employment)estimatesfortheagriculturalsectorareprovided,onanannualbasis,fromtheDepartmentofAgricultureandRuralDevelopment’s(DARD)FarmCensus.
Source(s):NISRAAbstractofStatisticsOnline.
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Indicator:1.3EmploymentVolatilitysince2008
IndicatordefinedTheseasonallyadjusted(sa)quarterlymovementsarechartedtodemonstratepotentialsignsofvolatilityorstabilisation.ReferenceperiodforlatestavailabledatausedinthisindicatorisQ4of2011.Dataextractedon9March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart1.3SeasonallyadjustedquarterlymovementsinemploymentQ12008‐Q42011(000s)
‐80
‐70
‐60
‐50
‐40
‐30
‐20
‐10
0
10
20
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Table1.3 SeasonallyadjustedquarterlymovementsinemploymentQ12008‐Q42011
Period Changeinemployment(sa)‘000sQ12008 ‐2.4Q22008 ‐24.5Q32008 ‐22.8Q42008 ‐34.2Q12009 ‐77.5Q22009 ‐43.0Q32009 ‐26.2Q42009 ‐20.0Q12010 ‐19.2Q22010 ‐16.9Q32010 ‐11.6Q42010 ‐16.9Q12011 ‐8.5Q22011 ‐3.3Q32011 ‐14.4Q42011 +10.0
InterpretationThenumbers inemploymentgrewby10,000 inQ42011(seasonallyadjusted)– thefirstincreaserecordedafter15consecutivequartersoflossessincetotalemploymentbegantofallinQ42007.
TechnicalNotes:TheCSO’sQuarterlyNationalHouseholdSurvey is a conductedeachweekovera totalsampleof39,000householdsandispublishedonaquarterlybasis.Thesehouseholdsare surveyed over five consecutive quarters. The ILOdefinitionof the labour forceincluded all those employed and unemployed over the age of 15, but excludes theinactivepopulation.TheNACEcodesareemploymentsectorclassifications.SeasonallyadjusteddataareestimatedusingtheX‐12‐ARIMAmodel.
Source(s):CSOQuarterlyNationalHouseholdsurvey
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2 PeopleoutofWork
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Indicator2.1TheRateofUnemploymentacrossEuropeanUnionMemberStates
IndicatordefinedTotalunemployedasapercentageoftheLabourForce(ILOdefinition)ReferenceperiodforlatestavailabledatausedinthisindicatorisJanuary2012.Dataextractedon20March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart2.1RatesofUnemploymentJanuary2012
14.8
0 5 10 15 20 25
AustriaNetherla…Luxembo…Germany
MaltaCzech…
RomaniaBelgiumFinlandSwedenDenmarkSlovenia
UK *Italy
CyprusFranceEU 27PolandEU15
HungaryBulgariaEstonia *Slovakia
Lithuania *Latvia ***
Rep IrelandPortugal
Greece **Spain
* Dec 2011 ** Nov 2011 ***Sep 2011
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Table2.1 RatesofUnemploymentJanuary2012Country % Country %Spain 23.3 Italy 9.2Greece** 19.9 UnitedKing* 8.3RepofIreland 14.8 Slovenia 8.2Portugal 14.8 Denmark 7.9Latvia*** 14.7 Sweden 7.6Lithuania* 14.3 Finland 7.5Slovakia 13.3 Belgium 7.4Estonia* 11.7 Romania 7.2Bulgaria 11.5 CzechRepublic 6.9Hungary 10.9 Malta 6.5EU15 10.2 Germany 5.8EU27 10.1 Luxembourg 5.1Poland 10.1 Netherlands 5.0France 10.0 Austria 4.0Cyprus 9.6
Notes:datafrom*Dec2011**Nov2011***Sep2011
InterpretationTherateofunemploymentvariedconsiderablyacrossMemberStatesatthebeginningof2012.Theaverageacross thewholeUnionwas just inexcessof10%while in theRepublicofIrelandtheratewas14.8%.TechnicalNotes:The standarddefinitionsof the International LabourOrganisation (ILO) areusedbyEurostattocompareratesofeconomicactivityinthelabourmarketinEuropeanUnionMember States. Data refer to all unemployed persons aged 15 to 74whowere notemployedduring the referenceweek, had actively soughtworkduring thepast fourweeksandwerereadytobeginworkingimmediatelyorwithintwoweeks.Employedpersons are all persons whoworked at least one hour for pay or profit during thereferenceweekorweretemporarilyabsentfromsuchwork.Theunemploymentrateis thenumberofpeopleunemployedasapercentageof the labour force.The labourforce is the total number of people employed and unemployed. All data refer toseasonallyadjusteddataforJanuary2012exceptinthefollowingcountrieswherethereferencedateisearlier:Estonia,Greece,Latvia,LithuaniaandtheUnitedKingdom.Source(s):EurostatonlineDatabasehere.
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Indicator2.2RatesofUnemploymentamongYoungPeopleacrossEuropeanUnionMemberStates
IndicatordefinedTotalunemployedundertheageof25asapercentageofthecorrespondingLabourForce(ILOdefinition)ReferenceperiodforlatestavailabledatausedinthisindicatorisJanuary2012.Dataextractedon20March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart2.2 RatesofUnemploymentpersonsaged<25years‐January2012
0 10 20 30 40 50 60
GermanyAustria
NetherlandsMalta
LuxembourgDenmarkSlovenia *
Czech RepublicFinlandBelgiumEU 15
SwedenEU 27
United King *France
Romania ***Estonia *Cyprus *HungaryPolandBulgaria
Rep IrelandLatvia ***
ItalyLithuania *
PortugalSlovakia
Greece **Spain
29.6
* Dec 2011 ** Nov 2011 ***Sep 2011
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Table2.2 RatesofUnemploymentamongpersonsaged<25‐January2012
Country % Country %Spain 49.9 EU27 22.4Greece** 48.1 UnitedKing* 22.4Slovakia 36.0 Sweden 22.3Portugal 35.1 EU15 21.4Lithuania* 34.4 Belgium 21.2Italy 31.1 Finland 19.9Latvia*** 29.9 CzechRepublic 19.8RepIreland 29.6 Slovenia* 15.3Bulgaria 28.9 Denmark 14.6Poland 27.5 Luxembourg 13.9Hungary 27.3 Malta 13.8Cyprus* 27.0 Netherlands 9.0Estonia* 25.1 Austria 8.9Romania*** 23.8 Germany 7.8France 23.3
Notes:datafrom*Dec2011**Nov2011***Sep2011
InterpretationTherateofyouthunemployment(forpersonsundertheageof25)is,onaverage,overtwicetherateforallpersons.However,insomeMemberStatesitiscurrentlyalmostonehalfoftheentireyounglabourforce.TechnicalNotes:SeeNotesforIndicator2.1,above.Source(s):EurostatonlineDatabasehere.
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Indicator2.3Long‐termUnemploymentTrends(RepublicofIreland)
IndicatordefinedLong‐termunemployedasapercentageofallunemployedReferenceperiodforlatestavailabledatausedinthisindicatorisQ3of2011.Dataextractedon20March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart2.3 RatesofLong‐termUnemployment(>12months)%oftotalunemployment
0
10
20
30
40
50
60
70
07Q1 08Q1 09Q1 10Q1 11Q1
Rep Ireland LT U% EU 15 LT U%
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Table2.3 RatesofLong‐termUnemployment(>12months)%oftotalunemployment
Period RepIrelandLTU% EU15LTU%2007Q1 29.2 40.52007Q2 30.1 40.82007Q3 30.2 39.72007Q4 28.5 39.62008Q1 29.1 37.82008Q2 29.4 37.62008Q3 25.7 35.22008Q4 25.5 33.62009Q1 24.3 30.72009Q2 24.0 32.12009Q3 28.3 33.62009Q4 38.7 35.72010Q1 44.5 37.42010Q2 46.6 39.92010Q3 49.8 40.72010Q4 54.7 41.72011Q1 58.8 41.52011Q2 57.6 42.42011Q3 59.4 42.4
InterpretationAs total unemployment rates have increased across Europe the proportion of totalunemployedwho are long‐term unemployed has increased especially since the firstQuarterof2009.TherateintheRepublicofIrelandhasrisensharplyandovertooktheEU15average inthe lastQuarterof2009.Currently, long‐termunemployedaccountfor almost 60% of all unemployed in the Republic compared to just under 30% in2007.TechnicalNotes:SeeNotesforIndicator2.1,above.Source(s):EurostatonlineDatabasehere.
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Indicator2.4Under‐employmentacrossEuropeanUnionMemberStates
IndicatordefinedRatesofunemploymentandunder‐employmentaspercentageof‘widelabourforce’Referenceperiodforlatestavailabledatausedinthisindicatoris2010.Dataextractedon20March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart2.4 RatesofUnemployment/Under‐employment‐2010
20.7
0 5 10 15 20 25 30 35
Czech RepubNetherlandsLuxembourg
AustriaSloveniaBelgiumCyprus
DenmarkGermany
PolandPortugalFrance
United KingdFinlandGreeceSwedenHungary
EU 27EU 15
SlovakiaBulgaria
ItalyRep IrelandLithuaniaEstoniaSpainLatvia
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Table2.4 RatesUnemployment/Under‐employment–2010Country % Country %Latvia 29.7 United Kingdom 16.4 Spain 28.7 France 16.3 Estonia 23.4 Portugal 15.1 Lithuania 22.3 Poland 15.1 Republic Irel 20.7 Germany 14.9 Italy 19.4 Denmark 12.8 Bulgaria 18.3 Cyprus 11.6 Slovakia 17.5 Belgium 11.4 EU 15 17.2 Slovenia 11.2 EU 27 17.0 Austria 11.2 Hungary 16.8 Luxembourg 11.1 Sweden 16.7 Netherlands 9.7 Greece 16.5 Czech Repub 9.3 Finland 16.4
InterpretationAsjobopportunitiesnarrowanincreasingnumberofworkersdropoutofthelabourmarket defined as all persons at work or actively seeking, and available for, work.Adding together all persons in employment including under‐employed, unemployed(ILO definition) and persons available for work but not actively seeking work(discouragedworkers)andpersonsnot immediatelyavailablebut seekingwork it ispossible to estimate the total rate of unemployment and under‐employment as aproportionofthe‘widelabourforce’.
TechnicalNotes:Underemployed part‐timeworkers are persons working part‐time who wish toworkadditionalhoursandareavailabletodoso.Part‐timework isrecordedasself‐reportedbyindividuals.Persons seeking work but not immediately available are the sum of personsneitheremployednorunemployedwho:(a)areactivelyseekingworkduringthelast4weeksbutnotavailableforworkinthenext2weeks;or(b)foundajobtostartinlessthan3monthsandarenotavailableforworkinthenext2weeks;or(c)foundajobtostart in3monthsormore;or(d)arepassivelyseekingworkduringthe last4weeksandareavailableforworkinthenext2weeks.Persons available to work but not seeking are persons neither employed norunemployedwhowanttowork,areavailableforworkinthenext2weeksbutarenotseekingwork.
Source(s):EurostatonlineDatabasehere.
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Indicator2.5Under‐employmentoverTime(RepublicofIreland)
IndicatordefinedRatesofunemployment(ILOdefinition)andtotalunder‐employmentincludingunemployment
ReferenceperiodforlatestavailabledatausedinthisindicatorisQ4of2011.Dataextractedon20March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart2.5 RatesofUnder‐employmentandUnemploymentsince2008‐ROI
0
5
10
15
20
25
30
2008Q3 2009Q3 2010Q3 2011Q3
Under‐Employed Unemployed
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Table2.5 RatesofUnder‐employmentandUnemploymentsince2008‐ROI
Period Unemployed Under‐EmployedS32008Q3 7.0 13.92008Q4 7.6 13.62009Q1 10.2 17.62009Q2 12.0 20.02009Q3 12.7 20.92009Q4 12.4 20.42010Q1 12.9 21.02010Q2 13.6 22.12010Q3 13.9 22.62010Q4 14.1 23.02011Q1 14.1 23.32011Q2 14.3 24.02011Q3 14.8 25.02011Q4 14.3 24.5
InterpretationAsjobopportunitiesnarrowanincreasingnumberofworkersdropoutofthelabourmarket defined as all persons at work or actively seeking, and available for, work.Adding together all persons in employment including under‐employed, unemployed(ILO definition) and persons available for work but not actively seeking work(discouragedworkers)andpersonsnot immediatelyavailablebut seekingwork it ispossible to estimate the total rate of unemployment and under‐employment as aproportionofthe‘widelabourforce’.TechnicalNotes: S1: UnemployedplusdiscouragedworkersasapercentageoftheLabourForceplusdiscouragedworkersS2:Unemployedplusmarginallyattachedplusothersnotineducationwhowantworkas a percentage of the Labour Force plus marginally attached plus others not ineducationwhowantwork.S3:Unemployedplusmarginallyattachedplusothersnotineducationwhowantworkplus underemployed part‐time workers as a percentage of the Labour Force plusmarginallyattachedplusothersnotineducationwhowantwork.Source(s):CSOQuarterlyNationalHouseholdSurveyDecember2011(forindicatorsofpotentiallaboursupply)here.andCSOStatbank–fordataonunemployment.
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Indicator2.6UnemployedPersonsperJobVacancy
IndicatordefinedRatioofthestockofunemployedtothestockofjobvacanciesReferenceperiodforlatestavailabledatausedinthisindicatorisQ2of2011.Dataextractedon2March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart2.6 Ratioofunemployedtojobvacanciesinthesecondquarterof2011–EU15
0 10 20 30 40 50 60 70
Austria
Germany
Netherlands
Luxembourg
UnitedKingdom
EU15 (12countries)
Finland
Sweden
Denmark
France
Italy
Republic ofIreland
Portugal
50.0
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Table2.6 Ratioofunemployedtojobvacanciesinthesecondquarterof2011–EU15
Country RatioPortugal 61.2RepublicofIreland 50.0Italy 28.6France 26.8Denmark 10.7Sweden 7.6Finland 7.4EU15(12countries) 7.1UnitedKingdom 6.8Luxembourg 4.0Netherlands 3.3Germany 3.0Austria 2.8
InterpretationTheratioofunemployedtojobvacanciesisameasureoftheextentoflabourmarkettightness. The higher the ratio the less opportunity for unemployed individuals toemployment.TechnicalNotes: DataarepublishedbytheCommissiononaquarterlybasis.Twosourcesareusedforthis indicator: the EU Job Vacancy survey and the Labour Force Survey (bothundertakenbyEurostat)Stockofunemployed:unadjusted,age15‐64.DataarenotavailableforBelgium,Greece,andSpain.ILOdefinition.Stock of jobvacancies: number of paid posts that are newly created, unoccupied, orabouttobecomevacantforwhichtheemployeristakingactivestepsandispreparedto take further steps to find a suitable candidate from outside the enterpriseconcerned, and which the employer intends to fill either immediately or within aspecificperiodoftime.Agricultureandthepublicsectorareexcludedfromthestockofjobvacancies.Source(s):European Vacancy Monitor of the European Commission (DG Employment, SocialAffairsandInclusion).Issueno.5/January2012here.
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3 LabourCosts
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Indicator3.1aCostofEmployingLabouracrossAdvancedEUeconomies(EU15)
IndicatordefinedHourlycostofemployinglabourfortheBusinessEconomy(Eurowith,andwithout,adjustmentfordifferencesincostoflivingPPS)Referenceperiodforlatestavailabledatausedinthisindicatoris2010.Dataextractedon20February2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart3.1aHourlyLabourCosts–BusinessEconomy(EU15)in2010
Note:Datafor2010werenotavailableforthefollowingEU15countries:Greece,ItalyandNetherlands
0 10 20 30 40 50
Portugal
United Kingdom
Spain
Republic of…
Austria
EU15 average…
Finland
Germany
Luxembourg
France
Sweden
Belgium
Denmark
€ (PPS) € (no PPS)
No PPS
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Table3.1a HourlyLabourCosts–BusinessEconomy(EU15) €(noPPS) €(PPS)
Denmark 38.43 26.96Belgium 37.70 33.79Sweden 35.99 30.05France 33.15 29.64Luxembourg 32.46 27.07Germany 29.20 28.02Finland 28.97 23.57EU15average* 28.63 25.25Austria 28.23 26.37RepublicofIreland 27.76 23.48Spain 20.25 20.94UnitedKingdom 19.20 19.15Portugal 12.17 13.90Note:*Datafor2010werenotavailableforthefollowingEU15countries:Greece,ItalyandNetherlands.Therefore,averageisfor12countriesonly.
InterpretationComparativedataofwhatitcoststoemploylabourmaybepresentedinanumberofways.Inthispresentationthefocusisonthecostperhouradjusted,andnotadjusted,fordifferencesinthecostoflivinginacountryasmeasuredbyPPS–thepurchasingpowerstandardestimatedbyEurostat.
TechnicalNotes:The total business economy includes all sectors of industry and services excludingpublicadministration.Agricultureisnotincluded.Data forGreece, Italy andNetherlandswerenot available for2010.Greece reported€17.70in2009(latestyearavailable),Italyreported€24.41in2008andNetherlandsreported29.23in2008.
Source(s):Eurostatonlinedatabasehere.
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Indicator3.1bHowmuchdoesitcosttoemploylabourintheAccommodationandFoodsectorsacrosssomeadvancedEUeconomies?(EU15)
IndicatordefinedHourlycostofemployinglabourfortheAccommodationandFoodSector(Eurowith,andwithout,adjustmentfordifferencesincostoflivingPPS)Referenceperiodforlatestavailabledatausedinthisindicatoris2010.Dataextractedon24March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart3.1bHourlyLabourCosts–AccommodationandFood
sector(EU15)
Note:Datafor2010werenotavailableforthefollowingEU15countries:Belgium,Greece,ItalyandNetherlands
0 5 10 15 20 25 30
Portugal
United Kingdom
Spain
Austria
Germany
Republic of…
Luxembourg
EU15 average…
Sweden
France
Finland
Denmark
€ (PPS) € (no PPS)
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Table3.1b HourlyLabourCosts–AccommodationandFoodsector(EU15)
€(noPPS) €(PPS)Denmark 27.06 18.98Finland 22.85 18.60France 22.44 20.06Sweden 21.96 18.33EU15average* 17.13 14.99Luxembourg 16.93 14.11RepublicofIreland 16.04 13.57Germany 14.30 13.72Austria 14.08 13.15Spain 13.40 13.86UnitedKingdom 10.63 10.60Portugal 8.69 9.92Note:*Datafor2010werenotavailableforthefollowingEU15countries:Belgium,Greece,ItalyandNetherlands.Therefore,averageisfor11countriesonly.
InterpretationSeeinterpretationforindicator3.1a,above.
TechnicalNotes:Seenotesforindicator3.1a,above
Source(s):Eurostatonlinedatabasehere.
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Indicator3.2ComparingLabourCostsintheCivilServiceacrossOECDcountries(ClericalOfficer)
IndicatordefinedTotalcostof‘ExecutiveStaff’inCentralGovernmentin2009(USdollarsatconstantpurchasingpowerparity)Referenceperiodforlatestavailabledatausedinthisindicatoris2009.Dataextractedon13March2012.Nextupdateduein2013.Chart3.2Totalcostofemploying'ClericalOfficers'inthecivilserviceUS$‐2009(USDollarsatconstantpurchasingpowerparity)
‐ 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
Slovenia
Estonia
Hungary
Great Britain
New Zealand
Republic of Ireland
Korea
Australia
OECD
Sweden
Denmark
Spain
Finland
Norway
Belgium
USA
Netherlands
Wages and salaries Employer Social contributions Working time correction
$44,184
$50,678
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Table3.2 Totalcostofemploying'ClericalOfficers'inthecivilserviceUS$‐2009(USDollarsatconstantpurchasingpowerparity)
Wages and
salaries
Employer Social
contributions
Working time
correctionTotal
Netherlands 45,717 10,363 14,640 70,720 USA 44,808 16,471 8,197 69,476 Belgium 43,099 10,903 13,297 67,298 Norway 40,473 9,302 12,238 62,014 Finland 37,609 7,865 14,615 60,089 Spain 36,772 9,267 11,707 57,746 Denmark 38,550 5,552 12,293 56,394 Sweden 30,034 14,511 9,011 53,556 OECD 33,631 7,678 9,369 50,678 Australia 35,831 5,701 8,529 50,062 Korea 35,575 3,151 5,808 44,534 Republic of Ireland 29,940 3,219 11,026 44,184 New Zealand 35,579 2,476 5,136 43,191 Great Britain 25,075 6,719 7,996 39,791 Hungary 20,806 7,646 5,081 33,533 Estonia 18,874 7,029 4,974 30,877 Slovenia 21,117 3,400 3,865 28,381
InterpretationComparisons of the cost of employing staff across countries is challenging. In itspublicationGovernmentataGlance,OECDprovidescomparativedatainrelationtotheearningsandcostofemployingcertaincategoriesofstaff intheGeneralGovernmentsector according to an internationally agreed classificationofoccupations (ISCO‐88).Thisindicatorpresentsdataforjustonecategory–thegradeofClericalOfficeroritsequivalent in other countries. The comparison indicates that average cost peremployeeis lowerintheRepublicofIrelandthantheaverageacrossreportingOECDcountries.ThedataareexpressedinUSdollarscorrectedfordifferencesinthecostoflivingandrefer to theyear2009.The impactofpaycuts in thepublicservice in theRepublicin2010arenot,therefore,capturedinthiscomparison.TechnicalNotes:Secretaries(generalofficeclerks)(ISCO‐08411and4110)‘performarangeofclericaland administrative tasks in connection with money‐handling operations, travelarrangements,requestsforinformationandappointments.Theyrecord,prepare,sort,classify and fill information; sort, open and send mail; prepare reports andcorrespondence of a routine nature; record issue of equipment to staff; respond to
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telephone or electronic enquiries or forward to appropriate person; check figures,prepare invoices and record details of financial transactions made; transcribeinformation onto computers; and proofread and correct copy’. The internationalcategoryof ‘Secretaries’ translates into ‘ClericalOfficer’gradestaff intheRepublicofIreland.Methodology and Definitions Note by OECD
Datareferto2009andwerecollectedbythe2010OECDsurveyontheCompensationofEmployees in Central/Federal Governments. Officials from central Ministries andAgencies responded to the survey through the OECD Public Employment andManagementWorkingParty.
Total compensation includes wages and salaries, employers' social contributions tostatutorysocialsecurityschemesorprivatelyfundedsocialinsuranceschemes,aswellasunfundedemployeesocialbenefitspaidbytheemployer,includingpensionpaymentspaidthroughthestatebudgetratherthanthroughemployersocialcontributions(mostlyforsomepay‐as‐you‐go systems).Compensationwasconverted toUSDusingPPPs forGDPfromtheOECDNationalAccountsDatabase.Workingtimeadjustmentcompensates fordifferences in timeworked (bothweeklyworking timeandholidays).A largerworkingtimeadjustmentgenerallymeansthatemployeesworkfewerhoursand/ordaysperyear.Thefocusontotalcompensationallowsacomparisonofthevaryingdegreeswithwhichgovernments remunerate their employees via social contributions or viahigherwagesandsalaries. Inmostcasesdataare forsixcentralgovernmentMinistries/Departmentsonly(Interior,Finance,Justice,Education,HealthandEnvironmentortheirequivalents).Positionsarebasedon the InternationalStandardClassificationofOccupations (ISCO).The main limitations of the data are the less‐than‐full comparability of occupationsacrosscountries, thewaycountrieshave interpretedthedefinitionofthepositions,andsome lackofclarityregardingthe levelofsocialcontributionsandthedifferingcostsoflivingacrosscountriesincapitalcities.
Compensation levelsarecalculatedbyaveragingthecompensationofthestaff inplace.(Itisnotthemiddlepointbetweentheminimumandmaximumsalary.)
ThefollowingpointsshouldalsobenotedinregardtodataprovidedfortheRepublicofIreland:
1. TheamountshowntakeintoaccountthedecreaseofthesalariesfollowingtheFinancial Emergency Measures in the Public Interest Act 2009 (the publicservicepensiondeduction).
2. Theimpactofpaycutsin2010havenotbeenincluded.3. EstimatesforemployerSocialcontributions(10.45%)refertostaffhiredafter
1995(classA1). Thesocial insuranceelementof futurepension liabilities totheStateofemployingstaff is thereforecaptured in this figure.However, theoccupational element of future pension liabilities is not included. AnadjustmentbasedonNationalAccountsdatasourceshasbeenmadeforotherOECDcountriesshownintheaboveTableandChart.Hence,thepresentvaluetotheExchequeroffuturepensionliabilitiesislikelytobeunder‐estimatedforthe Republic of Ireland compared to some other OECD countries wherepensionsarefundedbyaseparateemployercontributionratherthanthrough
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a ‘pay‐as‐yougo’mechanism.FurtheranalysisandsurveyworkisplannedbyOECDinregardtothisaspectofinternationalcomparison.
Source(s):GovernmentataGlance,OECD,Paris.Downloadtablehere.Source: 2010 OECD Survey on Compensation of Employees in Central/FederalGovernments,OECDSTANdatabase.For further country‐specific information aswell as details on themethodology usedseeAnnexD(availablehere)
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4 DistributionofIncomeandWealth
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Indicator4.1IncomeInequalityoverTime
IndicatorsdefinedWeusetwomeasurestosummarisetheincomedistribution:
1. TheGinicoefficient–anindexrangingfrom0to100where0representsaperfectlyequaldistributionofincomeand100representsaperfectlyunequaldistribution(i.e.alltheincomeisreceivedbyoneindividual).
2. Theincomequintileratio–comparesthe%ofthetotaldisposableincomereceivedbyindividualsinthebottom20%(quintile)oftheincomedistributiontothatreceivedbythetop20%.
Simply,thegreaterthesenumbers,thegreaterthelevelofincomeinequality.Referenceperiodforlatestavailabledatausedinthisindicator2010.Nextupdatedueearly2013Chart4.1a Ginicoefficient
Chart4.1bIncomequintileratio
31.8
32.4 32.4
31.7
30.7
29.3
33.9
27.0
28.0
29.0
30.0
31.0
32.0
33.0
34.0
35.0
2004 2005 2006 2007 2008 2009 2010
5.0
5.1
5.0
4.9
4.6
4.3
5.5
4.0
4.2
4.4
4.6
4.8
5.0
5.2
5.4
5.6
2004 2005 2006 2007 2008 2009 2010
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Table4.1GinicoefficientandincomequintileratioforIreland’sincomedistribution,2004‐2010
2004 2005 2006 2007 2008 2009 2010
Ginicoefficient 31.8 32.4 32.4 31.7 30.7 29.3 33.9Incomequintileratio 5.0 5.1 5.0 4.9 4.6 4.3 5.5
InterpretationBetween2004and2007Ireland’sincomedistributionwasreasonablystaticwithonlysmall movements in both themeasures reported above. Subsequently, during 2008and 2009, the gap between the top and bottom quintile (20%) narrowed meaningincome inequality fell to its lowest level since the introduction of the CSO’s annualSurveyonIncomeandLivingConditions(SILC).Between2009and2010therewasamarked increase in income inequality with the income of the top quintile climbingfrom4.3 to5.5 times thatof thebottomquintilewhile theGini coefficient increasedfrom29.3to33.9.
TechnicalNotes:Thedataused tocompile these figurescomes fromtheCSO’sSurveyon IncomeandLivingConditions(SILC).Thissurvey,whichhasbeencarriedoutannuallysince2004,collects data on a representative sample of the national population with the latestsurvey in 2010 providing data on over 11,500 individuals in approximately 5,000households. The income data used is disposable income, representing the incomeindividualshavetospendoncetheyhavepaidalltheirincometaxesandreceivedanywelfare entitlements. This income data has also been equivalised, or weighted, toaccount for differences in household size and composition using the nationalequivalence scale. Further details on the SILC survey and its income variables areavailablefromtheCSOdocumentsandwebsitereferencesbelow.
Source(s):CSO(2011)SurveyonIncomeandLivingConditions–PreliminaryResults,2010.Dublin,
StationeryOffice.CSO(2010)SurveyonIncomeandLivingConditions–Results,2009.Dublin,Stationery
Office.CSOSILCwebsite:www.cso.ie/en/silc/Forfurtherdetailsontheseincomeinequalityindicatorsandforanaccountofincome
distributiontrendspriorto2004see:CollinsM.L. and C. Kavanagh (2006) ‘The Changing Patterns of Income Distribution
andInequalityinIreland,1973‐2004.’InCollins,M.L.,S.HealyandB.Reynolds(eds.), SocialPolicy in Ireland,Principles,PracticeandProblems (2ndedition).Dublin,LiffeyPress.
Social Justice Ireland (2011) AnAgenda for aNew Ireland ‐ Socio‐EconomicReview2011.Dublin,SocialJusticeIrelandpp.67‐72.
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Indicator4.2 WealthperCapita
IndicatordefinedNetFinancialAssetsperperson
Referenceperiodforlatestavailabledatausedinthisindicator2010.Chart4.2 NetFinancialWealthPerPerson
€0 €10,000 €20,000 €30,000 €40,000 €50,000 €60,000 €70,000 €80,000
Greece
Spain
Portugal
Finland
Ireland
Euro area (17 countries)
Germany
Austria
France
Denmark
Italy
Sweden
Netherlands
Luxembourg
Belgium
2010 2007
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Table4.2 NetFinancialAssetsperpersonEuro 2007 2010Austria 37,695 41,119Belgium 66,182 67,002Denmark 41,518 43,423Euroarea 36,846 36,393Finland 21,624 21,985France 40,739 42,337Germany 35,384 38,120Greece 18,817 11,185Ireland 25,896 26,226Italy 49,469 45,124Luxembourg 55,775 66,048Netherlands 59,045 58,836Portugal 19,919 20,044Spain 22,106 17,721Sweden 37,976 45,754
InterpretationDespitethefinancialcrisis,netfinancialwealthperpersonhasbeenremarkablystableacrossEurope.Innetterms,theperpersonfinancialwealthofIrishresidentsisattheEuropean average, though considerably less than wealthier Eurozone average. Theaverage resident in Ireland owned 26,226 of financial wealth (such as cash, bankdeposits,or shares).Thisdoesnot includenon‐financialwealthsuchasproperty.Asmuch financialwealth isheldabroad, taxing this couldhelpbring somemoneybackintotheIrisheconomy.However, as these are netaverage figures, they give no indication as to the severefinancialstrainunderwhichmanyhouseholdsaresuffering.
TechnicalNotes:UKisomittedduetolackofdata.Theconsolidatednetfinancialassetsofhouseholdsand non‐profit institutions serving households was divided by population as of 1stJanuary.
Source(s):Eurostat[nasa_f_bs];Eurostatdemo_pjan.Dataaccessed2ndFebruary2012.
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Indicator4.3 ShareofWagesinTotalIncome
IndicatordefinedAdjustedwageshareofGDPReferenceperiodforlatestavailabledatausedinthisindicator2011.Chart4.3 Shareofwagesintotalincome
40
45
50
55
60
65
70
75
80
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
United Kingdom United States Denmark Ireland
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Table4.3 ShareofLabourinincomeCountry Denmark ROI UK US1960 56.6 68.7 64.6 65.21970 60.2 68.1 65.6 65.91980 62.3 70.9 66.1 65.11985 58.2 63.6 63.0 63.11990 59.3 60.2 65.4 63.11991 58.9 60.4 66.2 63.31992 58.6 61.5 65.9 63.01993 58.7 60.9 64.4 62.81994 56.4 59.7 63.1 62.21995 56.5 56.7 62.1 62.21996 56.7 55.4 60.6 61.51997 56.3 53.0 60.4 61.31998 57.5 51.6 61.2 62.31999 57.8 49.8 61.5 62.32000 56.4 48.5 62.5 63.22001 57.5 48.2 63.3 63.12002 58.0 46.3 62.5 62.22003 58.3 46.5 62.4 62.22004 57.3 47.4 62.1 61.32005 56.9 48.5 62.2 60.72006 56.9 48.8 62.1 60.62007 58.3 50.2 62.0 60.62008 59.9 55.3 62.3 61.02009 62.5 56.2 64.8 60.62010 59.8 53.7 64.1 59.32011 59.2 52.5 63.6 59.1InterpretationThewage share isdeterminedby capital intensity, technology, and also institutionalfactors.Globallytherehasbeenageneraldeclineinthewageshare,butIreland’ssharpdeclinefollowedbypartialrecoveryisunique.
TechnicalNotes:Thewageshareisthetotalcompensationofemployees(wagesplussocialinsurance)dividedbyGDP.Thewageshare is adjustedbyAMECOtoaccount for self‐employedworkers.
Source(s):AMECO(ALCD0)
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5 PovertyandSocialExclusion
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Indicator5.1PovertyandDeprivationintheRepublicofIreland
Povertyismeasuredusingthreeindicators:Atriskofpovertyrate:Theproportionofindividualswithdisposableincomeoflessthan60%ofmedianincome.(Enforced)Deprivationrate:Theproportionofindividualswhocannotaffordtwoormoreitemsfromalistof11.Consistentpovertyrate:Theproportionofindividualswhoareat‐riskofpovertyandalsoexperiencingenforceddeprivation.Referenceperiodforlatestavailabledatausedinthisindicatoris2010.DataextractedonMarch2012.Nextupdatedueinearly2013.Chart5.1Trendsinpovertyanddeprivation,2004‐2010(%)
Table5.1PovertyandDeprivationratesfortheRepublicofIrelandasa%ofthepopulation,2004‐2010 2004 2005 2006 2007 2008 2009 2010Atriskofpoverty 19.4 18.5 17.0 16.5 14.4 14.1 15.8Deprivation 14.2 14.9 13.8 11.8 13.8 17.1 22.5Consistentpoverty 6.6 7.0 6.5 5.1 4.2 5.5 6.2
0.0
5.0
10.0
15.0
20.0
25.0
2004 2005 2006 2007 2008 2009 2010
At risk of poverty Deprivation Consistent poverty
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InterpretationThe at risk of poverty or ‘relative income poverty’ rate fell from 2004 to 2009.However, the rate increased from14.1% in 2009 to15.8% in2010, despite the factthatthethresholdlevel(60%ofmediandisposableincome)declinedby10%between2009and2010(from€12,046to€10,831);thisreflectsanoveralldeclineinincomesoverthatperiod.Enforceddeprivation,measuring thenumberof individualsdeprivedof twoormorebasicitems(seetechnicalnotesforlist)felltoaslowas11.8%in2007.However,ithasincreasedsinceas the impactof therecessionhithouseholds.By201022.5%of theROIpopulationwereexperiencingdeprivation.Between2009and2010,theincreaseindeprivationwaspredominantlyamongthosenotatriskofpoverty,upfrom13.7%in 2009 to 19.3% in 2010. During 2010, the main items where people experienceenforced deprivation were: ‘unable to afford to replace any worn out furniture’(20.3%); ‘unable to afford amorning, afternoon or evening out in the last fortnight’(19.3%); and ‘unable to afford to have family or friends for a drink ormeal once amonth’(14.4%).Therateofconsistentpovertymeasuresthesub‐sectionofthepopulationwhoareatrisk of poverty and experiencing deprivation. This measure is the focus of thegovernment’s official poverty target which aims to reduce those experiencingconsistentpovertytobetween2%and4%by2012withtheaimofeliminating itby2016.Between2005and2008theratefell,butithassinceincreasedto6.2%in2010.
TechnicalNotesThedataused tocompile these figurescomes fromtheCSO’sSurveyon IncomeandLivingConditions(SILC)andhasbeendescribedinthetechnicalnotesaccompanyingindicator 4.1. The at risk of poverty threshold is calculated as 60% of mediandisposableincome.Theelevenindicatorsusedtomeasuredeprivationare:Withoutheatingatsomestagein the last year; Unable to afford a morning, afternoon or evening out in the lastfortnight;Unable toaffordtwopairsofstrongshoes;Unable toaffordaroastonceaweek;Unabletoaffordamealwithmeat,chickenorfisheverysecondday;Unabletoafford new (not second‐hand) clothes; Unable to afford a warm waterproof coat;Unabletoaffordtokeepthehomeadequatelywarm;Unabletoaffordtoreplaceanywornoutfurniture;Unabletoaffordtohavefamilyorfriendsforadrinkormealonceamonth;Unabletoaffordtobuypresentsforfamilyorfriendsatleastonceayear.
Source(s)CSO (2011). Survey on Income and Living Conditions – Preliminary Results, 2010.
Dublin,StationeryOffice.CSOSILCwebsite:here.Seeallthesourceslistedunderindicator4.1.
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Indicator5.2ChildPovertyintheROI
ChildPovertyismeasuredusingtwoindicators:Childrenatriskofpoverty:Theproportionofchildrenlivinginhouseholdswhoseequivaliseddisposableincomeislessthan60%ofmedianincome.Childreninconsistentpoverty:Theproportionofchildrenlivinginhouseholdswhoareat‐riskofpovertyandalsoexperiencingenforceddeprivation.Childrenaredefinedasbeingagedbetween0‐17years.Referenceperiodforlatestavailabledatausedinthisindicatoris2010.DataextractedonMarch2012.Nextupdatedueinearly2013.Chart5.2 ChildPoverty,2006‐2010(%)
Table5.2ChildpovertyforROIasa%ofthepopulationofchildrenaged0‐17yrs,2006‐2010
2006 2007 2008 2009 2010Atriskofpoverty 22.3 19.9 18.0 18.6 19.5Consistentpoverty 10.3 7.4 6.3 8.7 8.2
0
5
10
15
20
25
2006 2007 2008 2009 2010
At risk of poverty Consistent poverty
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InterpretationTheproportionof theROI’schildrenlivinginhouseholdswhoseincomeisbelowthe60%ofmedianincomepovertylinehasexperiencedlimitedchangeoverthepastfewyears.While the years 2006‐07 recorded a decrease from22.3% to 19.9%, by 2010almost1inevery5children(19.5%)livedinahouseholdexperiencingrelativeincomepoverty.Over the period 2006‐2008 the proportion of children living in householdsexperiencing both relative income poverty and deprivation (consistent poverty)decreasedfrom10.3%to6.3%.However,sincethenithasincreasedandin20108.2%oftheROI’schildrenexperiencedconsistentpoverty.
TechnicalNotesThedataused tocompile these figurescomes fromtheCSO’sSurveyon IncomeandLivingConditions(SILC)andhasbeendescribedinthetechnicalnotesaccompanyingindicator 4.1. The at risk of poverty threshold is calculated as 60% of mediandisposable income. The items used to measure enforced deprivation have beendescribedinthetechnicalnotesaccompanyingindicator5.1.Prior to 2006 the CSOmeasured child poverty for children aged 0‐14yrs and foundthat in both years 21.2% of children in this age group lived in households whoseincomeisbelowthe60%ofmedianincomepovertyline.Theconsistentpovertyrateforthisagegroupwas9.5%in2006and10.2%in2007.
Source(s)CSO(2011).SurveyonIncomeandLivingConditions–PreliminaryResults,2010.Dublin,StationeryOffice.CSOSILCwebsitehere.Seeallthesourceslistedunderindicator4.1.
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Indicator5.3InWork‐PovertyintheROI
InWork‐Povertyismeasuredusingtwoindicators:Workersatriskofpoverty:Theproportionofindividualswhoseprincipleeconomicstatusis‘atwork’andwhoseequivaliseddisposableincomeislessthan60%ofmedianincome.Workersinconsistentpoverty:Theproportionofindividualswhoseprincipleeconomicstatusis‘atwork’andwhoareat‐riskofpovertyandalsoexperiencingenforceddeprivation.Referenceperiodforlatestavailabledatausedinthisindicatoris2010.DataextractedonMarch2012.Nextupdatedueinearly2013.Chart5.3a In‐workPoverty,2004‐2010(%)
Chart5.3bCompositionofthoseatriskofpoverty2010(%)
0
1
2
3
4
5
6
7
8
9
2004 2005 2006 2007 2008 2009 2010
At risk of poverty Consistent poverty
At Work,17.3%
Unemployed, 13.4%
Student, 12.1%
Home duties, 16.7%
Retired, 4.2%
Ill/disabled, 5.3%
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Table5.3a In‐workpovertyintheROI,2004‐2010 2004 2005 2006 2007 2008 2009 2010Atriskofpoverty 7.0 7.0 6.5 6.7 6.7 5.5 7.8Consistentpoverty 1.8 1.7 1.6 1.3 1.1 1.1 1.8
Table5.3bCompositionofthoseatriskorpovertyintheROI,2009‐2010
2009 2010AtWork 14.3% 17.3%Unemployed 12.9% 13.4%Student 14.6% 12.1%Homeduties 18.0% 16.7%Retired 4.7% 4.2%Ill/disabled 6.4% 5.3%
InterpretationBetween 2004 and 2008 there was limited change in the proportion of individualswhoseprincipleeconomic status is ‘atwork’ andwhowere livingat riskofpoverty.However,by2009theratedroppedto5.5%beforeincreasingtoalmost8%in2010.Similarly, consistent poverty levels among those atwork declined overmuch of theperiodbeforeincreasingonceagainin2010.Despitethefactthattherateofrelativeincomepoverty(7.8%)andconsistentpoverty(1.8%)islowamongthosewhoseprincipleeconomicstatusiswork,thefactthattheworkingpopulationcomprisesalargepartofthepopulationaged16yearsandaboveresults in a high number of workers being in poverty. Using the 2010 data, whenpovertyamongthoseaged16yearsandabove isdecomposedbyprincipleeconomicstatus,thoseatwork(theworkingpoor)emergeasthelargestgroupofpeopleatriskofpoverty.
TechnicalNotesSeenotesforindicators4.1,5.1and5.2.Thecompositionofthoseatriskofpovertyisdecomposedbyprincipleeconomicstatusforall thoseaged16yearsandabove.Thetablesandchartsaboveexcludefiguresforchildrenunder16yearswhoarelivinginhouseholdsthatareatriskofpoverty.
Source(s)Seeallthesourceslistedunderindicator4.1.
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6 SocialWelfarePayments
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Indicator6.1UnemploymentBenefitsComparedtoEarnings(OECDcountries)
IndicatordefinedWecomparepreandpostUnemploymentincomeusingthereplacementratio.Itreferstothelevelofwelfareprovidedimmediatelyaftertheindividualbecomesunemployedandcalculatesthisasaproportionofpreviousaftertaxornetincome.Thefiguresinthisassessmentarebasedonanindividualearning67%oftheaveragewageineachOECDcountrybeforebecomingunemployed.Figuresarepresentedforsixhouseholdtypes.Table6.1 NetReplacementRatesforsixfamilytypesininitialphaseofunemployment,OECDCountries2009
No children 2 children
OECD countries Single person
One-earner
married couple
Two-earner
married couple
Lone parent
One-earner
married couple
Two-earner
married couple
Australia 43 63 55 61 72 69 Austria 55 57 80 71 73 85 Belgium 89 77 85 87 77 87 Canada 64 65 81 75 76 85 Czech Republic 75 76 87 82 79 92 Denmark 83 85 91 89 88 93 Estonia 54 56 77 62 56 79 Finland 64 75 78 85 83 83 France 70 72 84 82 82 84 Germany 60 63 88 81 80 92 Greece 65 70 83 78 83 92 Hungary 73 75 86 81 79 89 Iceland 77 72 89 84 77 91 Ireland (ROI) 46 72 73 69 76 77 Israel 74 74 86 66 70 89 Italy 72 75 86 77 74 88 Japan 67 66 85 70 65 85 Korea 55 55 77 57 54 78 Luxembourg 82 81 89 88 89 93 Netherlands 76 88 84 75 84 81 New Zealand 52 71 57 70 75 64 Norway 67 69 84 88 89 86 Poland 67 69 71 86 62 77 Portugal 78 75 91 79 77 91 Slovak Republic 60 58 83 71 57 84 Slovenia 76 83 88 82 83 92 Spain 78 74 89 75 75 88 Sweden 69 69 85 83 80 86 Switzerland 82 83 89 84 84 90 Turkey 53 52 80 52 51 80 United Kingdom 55 66 59 72 77 69 United States 60 58 82 52 49 85 OECD Average 67 70 81 75 74 85
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Chart6.1 RepublicofIrelandNetReplacementRatesforsixfamilytypesininitialphaseofunemploymentcomparedtotheOECDaverage,2009
InterpretationReplacementratescompareincomepriortounemploymentwithincomefromwelfareafterunemployment.AcrosstheOECDtheseratesrangefrom43%to93%.Giventhevariation in individual country replacement rates, reflecting the nature andcompositionofwelfareentitlements in thesecountries, thedatashows the futilityofmaking simple cross country comparisons based on one particular type ofindividual/household.TheROIpossessesthesecondlowestreplacementrateforsingleunemployedpeoplewithnochildrenwithintheOECD(46%),onlyAustraliahasalowerrate(43%).Ofthesix household types examined by the OECD (see table and chart) four recordreplacementratesbelowtheOECDaverageandtwoabovetheaverage.
TechnicalNotes:Data is fromtheOECD’sTax‐BenefitCalculator.TheOECDalsoexaminereplacementratesforindividualsat100%and150%ofaverageearnings.Thedatainthetableandchart is from 2009, the latest comparable data available from the OECD. Since thenchanges to welfare rates and average earnings will have altered these replacementrates.
Source:OECDTax‐BenefitCalculatorhere.
46
72
73
69
76
77
67
70
81
75
74
85
0 10 20 30 40 50 60 70 80 90
Single person
One‐earner married couple
Two‐earner married couple
Lone parent
One‐earner married couple
Two‐earner married couple
No child
ren
2 child
ren
OECD Average ROI
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Indicator6.2UnemploymentBenefitsComparedtoEarningsintheRepublicofIrelandandtheUnitedKingdom
IndicatordefinedWecomparepreandpostUnemploymentincomeusingthereplacementratio.Itreferstothelevelofwelfareprovidedimmediatelyaftertheindividualbecomesunemployedandcalculatesthisasaproportionofpreviousaftertaxornetincome.Thefiguresinthisassessmentarebasedonanindividualearning67%,100%and150%oftheaveragewageineachcountrybeforebecomingunemployed.Figuresarepresentedforsixhouseholdtypes.
Table6.2NetReplacementRatesforsixfamilytypesininitialphaseofunemployment,ROI,UKandOECDaverage2009 No children 2 children
Single person
One-earner
married couple
Two-earner
married couple
Lone parent
One-earner
married couple
Two-earner
married couple
67% of the average wage ROI 46 72 73 69 76 77 UK 55 66 59 72 77 69 OECD average 67 70 81 75 74 85 100% of the average wage ROI 33 52 61 60 63 65 UK 38 46 49 64 71 58 OECD average 58 61 74 70 67 77 150% of the average wage ROI 25 39 50 48 49 55 UK 26 32 39 46 51 47 OECD average 47 48 63 57 55 66
InterpretationReplacementratescompareincomepriortounemploymentwithincomefromwelfareafter unemployment. The table above compares replacement rates forindividuals/householdsintheinitialphaseofunemployment(ineffectthefirstyearofunemployment)inROIandtheUK.
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The results show a variation in replacement rates between ROI and the UK andhighlighttheinappropriatenessofsimplecrosscountrycomparisonsbetweenthem.Inthecaseofthesixhouseholdswhosepre‐unemploymentincomerepresented67%oftheaveragewage, threehousehold typeshaveahigher replacement rate inROIandthreeintheUK.Asimilarpictureemergesfromhouseholdswhoseincomewasattheaveragewage prior to unemployment; replacement rates are highest in the ROI forthree of the six cases and highest in the UK for the other three cases. At 150% ofaverageearnings,fourofthesixreplacementratesarehighestintheROI.Acrossallofthe18householdtypesexamined,inonlytwocasesarethereplacementrateshigherthantheOECDaverageineitherROIortheUK:one‐earnermarriedcouplenochildrenat67%ofaverageearningsintheROIandone‐earnermarriedcoupletwochildrenat67%ofaverageearningsinbothROIandtheUK.Comparisonsofnetreplacementratesdonottakeintoaccountdifferencesinvarioustypes of non‐cash payment benefits to households such as subsidised services orexemptionfromvariouscharges.
TechnicalNotes:Data are from the OECD’s Tax‐Benefit Calculator. The data in the table and chart isfrom2009,thelatestcomparabledataavailablefromtheOECD.Sincethenchangestowelfareratesandaverageearningswillhavealteredthesereplacementrates.
Source:OECDTax‐BenefitCalculatorhere.
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7 PublicFinances
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Indicator7.1 TrendsinPublicExpenditureandRevenue(EU27andRepublicofIreland)
IndicatordefinedTotalGeneralGovernmentExpenditureandRevenue.Referenceperiodforlatestavailabledatausedinthisindicatoris2010‐2015.Dataextractedon24March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart7.1 TrendsinExpenditureandRevenue(includingprojectionsto2015accordingtoStabilityProgrammeUpdate)
0
10
20
30
40
50
60
70
80
'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 11 12 13 14 15
% GDP
EU27 Exp IE Exp EU27 Rev IE Rev
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Table7.1 TrendsinExpenditureandRevenue(includingprojectionsto2015)
EU27 Expend.
ROI Expend
EU27 Rev
ROI Rev
1998 47.3 34.4 45.3 36.61999 46.8 33.9 45.8 36.52000 44.7 31.2 45.3 35.92001 46.1 33.0 44.6 34.02002 46.6 33.4 44.0 33.12003 47.2 33.1 44.0 33.62004 46.8 33.5 43.9 34.92005 46.8 33.8 44.3 35.42006 46.3 34.3 44.8 37.22007 45.6 36.6 44.7 36.72008 47.1 42.8 44.7 35.42009 51.0 48.9 44.1 34.72010 50.6 66.8 44.1 35.52011 - 44.9 - 34.92012 - 43.1 - 34.52013 - 42.2 - 34.72014 - 39.8 - 34.82015 - 37.5 - 34.6
InterpretationPublicexpenditurerelatingtobankrecapitalisationin2010wasincludedintheabovechart.A feature of fiscal adjustment as pursued in the Republic, both before and after theNovember2010TroikaAgreement,isthatithasleanedonexpenditureandnotontax.WhenmeasuredasapercentageofGDP, theentireadjustment isontheexpendituresidewiththeshareoftotalrevenueinGDPstayingconstantovertheremainderoftheadjustmentperiod.Totalrevenueisprojectedtofallfromanestimatedlevelof34.9%ofGDPin2011toaslightlylowerlevelof34.6%in2015(pageD.19ofEconomicandFiscalOutlook).Ontheotherhand,totalspendingisprojectedtofallsharplyfromanestimatedlevelof44.9%ofGDPin2011to37.5%in2015.
TechnicalNotes:Total General Government Revenue includes taxes and other receipts of publicauthorities
Source(s):EurostatonlineDatabasehere.
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Indicator7.2 GovernmentRevenueas%GDP(EU27andRepublicofIreland)
IndicatordefinedTotalGeneralGovernmentRevenueas%ofGDPReferenceperiodforlatestavailabledatausedinthisindicatoris2010.Dataextractedon24March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart7.1 GovernmentRevenue%GDP
0 10 20 30 40 50 60
SlovakiaLithuaniaRomaniaBulgariaIrelandLatviaSpain
PolandCzech Republic
MaltaGreece
United KingdomEstoniaCyprus
LuxembourgPortugalGermanySloveniaHungary
ItalyNetherlands
AustriaBelgiumFranceFinlandSwedenDenmark
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InterpretationAsanalternativetocomparingcountrieswithreferencetoGDPGrossNationalIncome(GNI)maybeused.However,whereGNIisuseditisnecessarytodeductanestimateforcorporatetaxesonrepatriatedprofitswhichappearsaspartofGDPbutnotGNI.
TechnicalNotes:Total General Government Revenue includes taxes and other receipts of publicauthorities
Source(s):EurostatonlineDatabasehere.
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Indicator7.3 GeneralGovernmentDeficitas%GDP(2011)
IndicatordefinedTotalGeneralGovernmentDeficitas%ofGDP–structuralandcyclical.Referenceperiodforlatestavailabledatausedinthisindicatoris2011.Dataextractedon24March2012.Nextupdatedueonorbeforethenexteditionofthispublication.Chart7.3 StructuralandCyclicalDeficits%GDP(2011)
‐12 ‐10 ‐8 ‐6 ‐4 ‐2 0 2
Ireland
Greece
Cyprus
Spain
Slovakia
France
Portugal
Slovenia
EA‐17
Netherlands
Italy
Belgium
Austria
Malta
Germany
Finland
Luxembourg
Estonia
Cyclical Structural
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InterpretationThe ‘Golden Rule’ contained in the 2012 EU Fiscal Compact stipulates that aGovernment’s‘structuraldeficit’shouldnotbegreaterthan0.5%ofGDPforcountriesthat have a debt‐to‐ GDP ratio of over 60%. In 2011 three EUmember stateswerecompliantwiththe‘GoldenRule’withregardtothesizeofthestructuraldeficit.
TechnicalNotes:The ‘Golden Rule’ contained in the 2012 EU Fiscal Compact stipulates that aGovernment’s‘structuraldeficit’shouldnotbegreaterthan0.5%ofGDPforcountriesthat have a debt‐to‐GDP ratio of over 60%. The ‘structural deficit’ is defined as thedifference between total government revenue and spending adjusted for changes inthebusinesscycle.Suchanadjustmentismeasuredbyeconomistsandvariouspublicagenciesusingdataoveraperiodoftimetoidentifytheimpactofthebusinesscycleonthegovernmentdeficit.Typically,deficitsriseinrecessionsaspublicspendingrisesinresponsetohigherunemploymentandassociatedsocialpaymentswhilerevenuefallsoffaspeoplelosejobsorsufferlossofincome.Wheneconomicconditionsimprovethedeficit tends to fall. Analysts have attempted to estimate the portion of the deficitwhich can be explained by temporary cyclical factors. The remaining portion of thedeficitisreferredtoasthe‘structuraldeficit’–thegapbetweenspendingandrevenuethatremainswhenthetemporaryimpactofthebusinesscycleisignored.Forexample,Irelandmaintainedabalanceofgovernmentspendingandrevenueformostyearsupto2007.Withtheonsetofrecessionin2008spendinginitiallyroseandrevenuefellsothatalarge‘cyclical’deficitopenedup.
Source(s):European Commission (2011) Statistical Annex of European Economy. Autumn
2011.ECFIN.
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Indicator7.4 GeneralGovernmentDebtas%GDP
IndicatordefinedTotalGeneralGovernmentDebtas%ofGDP.Referenceperiodforlatestavailabledatausedinthisindicatoris2011.Dataextractedon24March2012.NextupdatedueonorbeforeQEF2.Chart7.4 GeneralGovernmentDebt%GDP(2011)
0 50 100 150 200Estonia
Bulgaria
Luxembourg
Romania
Czech Republic
Lithuania
Slovenia
Sweden
Slovakia
Denmark
Latvia
Finland
Poland
Spain
Cyprus
Netherlands
Malta
Austria
United Kingd
EU27
Hungary
France
Germany
Rep of Ireland
Portugal
Belgium
Italy
Greece
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InterpretationThe ‘GoldenRule’containedinthe2012EUFiscalCompactstipulatesthatwherethegovernment debt‐to‐ GDP ratio exceeds 60% countries must reduce it by 1/20 perannum. In2011 Irelandwasamong14EUmember stateswhowereabove the60%threshold.
TechnicalNotes:Seenotesforindicator7.3above.
Source(s):European Commission (2011) Statistical Annex of European Economy. Autumn
2011.ECFIN.
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Notes
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