Forecasts of Apprentice Intake into Selected Construction and Non-Construction Trades to 2015 Final Report Strictly confidential Authors: John McGrath – Research Manager Caroline Shally – Researcher Skills and Labour Market Research Unit (SLMRU) Planning & Research Department, FÁS 27-33 Upper Baggot Street Dublin 4 September 2011 Table of Contents 1. INTRODUCTION...................................................................................................................... 3 1.1 1.2 2. OBJECTIVE ..................................................................................................................................... 3 SCOPE ........................................................................................................................................... 3 SUMMARY OF MAIN FINDINGS ............................................................................................. 4 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3. INTRODUCTION ............................................................................................................................... 4 FORECASTING APPRENTICE INTAKE FOR ALL TRADES ................................................................................ 4 THE OUTLOOK FOR THE CONSTRUCTION INDUSTRY ................................................................................. 7 KEY RESULTS — FORECASTS OF APPRENTICE INTAKE IN THE CONSTRUCTION-RELATED TRADES ......................... 7 KEY RESULTS — FORECASTS OF APPRENTICE INTAKE IN THE NON-CONSTRUCTION-RELATED TRADES ................ 11 ASSESSMENT OF THE FORECASTS ...................................................................................................... 11 CONCLUSIONS .............................................................................................................................. 12 METHODOLOGY ................................................................................................................... 13 3.1 3.2 3.5 3.6 INTRODUCTION ............................................................................................................................. 13 FORECASTS OF EMPLOYMENT IN THE CONSTRUCTION-RELATED TRADES .................................................... 13 FORECASTS OF APPRENTICE INTAKE LEVELS IN THE CONSTRUCTION-RELATED TRADES ................................... 19 FORECASTS OF APPRENTICE INTAKE LEVELS IN THE NON-CONSTRUCTION RELATED TRADES ............................ 21 APPENDIX A – BACKGROUND TO THE REPORT ......................................................................... 22 APPENDIX B – APPRENTICESHIP PROFILES BY TRADE ............................................................ 23 B1. ELECTRICIAN ................................................................................................................... 23 B2. CARPENTER AND JOINER ................................................................................................ 27 B3. WOOD MANUFACTURER AND FINISHER....................................................................... 31 B4. BRICK AND STONE-LAYER .............................................................................................. 35 B5. PLUMBER ......................................................................................................................... 39 B6. PLASTERER ...................................................................................................................... 43 B7. PAINTER AND DECORATOR ........................................................................................... 47 B8. CONSTRUCTION PLANT FITTER .................................................................................... 51 B9. MOTOR MECHANIC .......................................................................................................... 55 B10. VEHICLE BODY REPAIRER .............................................................................................. 59 B11. MECHANICAL AUTOMATION AND MAINTENANCE FITTER......................................... 62 B12. TOOLMAKER .................................................................................................................... 66 2 1. 1.1 Introduction Objective The objective of this study is to provide policy makers, who are responsible for estimating the resources required over the next few years for the training of apprentices, with a broad indication of the anticipated annual levels of apprentice recruitment over the period 2011-2015 under a number of scenarios. 1.2 Scope This report — the third in the series — provides forecasts of apprentice recruitment for 12 construction and non-construction related trades in total, representing almost 80% of total new apprentice registrations in 2010. This report provides forecasts to 2015 under three scenarios. It covers the same apprenticeships as in the previous reports with one exception. A new wood manufacturing and finishing apprenticeship has replaced two distinct apprenticeships — cabinet making and wood machining —since November 2010. Recruitment of apprentices into the cabinet making and wood machining apprenticeships has ceased and recruitment is now into the wood manufacturing and finishing apprenticeship. Forecasting the recruitment of apprentices into the other designated apprenticeships is not possible at present, mainly due to the relatively small historical recruitment levels in the apprenticeships and the lack of detailed information in statistical classifications. Nevertheless, the Study Group on Apprenticeship Forecasting intends to further explore the feasibility of developing an appropriate forecasting methodology for these trades. Table 1.1 Construction and non-construction related trades Construction-related 1. 2. 3. 4. 5. 6. 7. 8. Non-construction related Electrician Carpenter and joiner Wood manufacturer and finisher1 Brick and stone-layer Plumber Plasterer Painter and decorator Construction plant fitter 1 1. 2. 3. 4. Motor mechanic Vehicle body repairer Fitter Toolmaker While the wood manufacturing and finishing apprenticeship is classified within the furniture sector, it is strongly influenced by the projected levels of construction activity. Therefore, the forecasts of apprentice recruitment for this trade are classified in the construction-related trades group in the remainder of this report. 3 2. 2.1 Summary of Main Findings Introduction It is particularly difficult to forecast future apprentice intake levels at this point in time. This is because the level of recruitment for many trades in recent years, particularly the construction-related trades, has been very volatile. During the period of the construction boom, the numbers recruited reached unprecedented high levels. In contrast, the numbers plummeted to record low levels in recent years. From a forecasting perspective, such extreme variations can pose particular problems. A judgement has to be made, for example, on whether or not the average ratios of apprentice recruitment to total employment, over a period which included the construction boom years, were normal, or whether factors such as skill shortages among crafts-workers or the inflow of a relatively large number of non-Irish nationals, had a significant impact. In the previous reports, it was assumed that in general the average ratio between the intake level of apprentices in a particular trade and employment in that trade, which prevailed over the period 1998-2006, would continue into the future when the economy recovers.2 However, it has become apparent that the ratio between apprentice intake and employment in the construction-related trades, which occurred during that eleven year period, can no longer be relied upon as an indicator of future ratios. The ratio began to decline in 2007 and it has continued to decline over the period 2008-2010 and during the first eight months of 2011. The current apprentice to employment ratio is significantly below historical levels and is at its lowest level since comparable statistics were recorded. The variation in the annual ratios of apprentice intake to employment is graphically presented for each trade in the trade profiles in Appendix B. 2.2 Forecasting apprentice intake for all trades The fact that the historical relationship between apprentice intake levels and employment no longer applies to the construction-related trades means that there is no obvious methodology for forecasting the levels of apprentice intake. Consequently, the Study Group on Apprenticeship Forecasting decided that in the case of the eight construction-related trades, three different forecast scenarios of 2 In the 2014 forecast, there were three exceptions made — this was in the case of electricians, plumbers and cabinet-makers respectively. The ratio was particularly high in these trades and consequently a variation in the forecast for these trades was produced — the ratio was capped at 5%. There was also some variation in the periods chosen in order to control for outliers or unevenness in the data. 4 apprentice intake in 2015 would be presented. These are referred to as the 19982010 ratio scenario; the 2007-2010 ratio scenario; and the 2010 ratio scenario. This approach should enable resource allocators to understand the potential boundaries of future apprentice recruitment and to decide on an appropriate strategy. The three different forecast scenarios of apprentice intake for each constructionrelated trade in 2015 are based on applying three different apprentice intake/employment ratios to the 2015 forecasts of employment in the relevant trades. The ratios used are the average ratio for the period 1998-2010; the average ratio for the period 2007-2010; and the ratio in 2010. These three respective scenarios reflect the: longest period for which historical data is available, period since the start of the collapse of the construction industry; and the ratio for the most recent year (i.e. 2010). The 2010 ratio scenario is based on the lowest ratio recorded to date. However, it is not entirely implausible because the current number of unemployed persons under 45 years of age in each of the construction-related trades is exceptionally high. Indeed, the number of unemployed crafts-persons is sufficient to fill all of the vacancies which would arise under any of the forecast scenarios in 2015 — assuming that all the unemployed are available to work in the relevant trade. It should be noted that in the case of the four non-construction related trades, the apprentice/total employment ratio is based on the average ratio over the period 1998-2010. This average ratio includes the years of the ‘Celtic Tiger’ and the more recent period of economic recession and, consequently, should provide a reasonable approximation of ‘moderate’ levels of recruitment over the projection period. 2.2.1 Calculating the forecasts for 2011 and 2012 It should be understood that the forecasts of apprentice intake in the constructionrelated trades for the years 2011 and 2012; the years 2013 and 2014; and for the forecast year 2015 under the three forecasting scenarios have been derived using different forecasting methodologies. The forecasts for 2011 are based on adjusting the 2010 apprentice intake levels in each trade by the magnitude of variation in apprentice intake levels between the first eight months of 2010 and the first eight months of 2011. This method was adopted as it should produce more accurate forecasts for 2011 as the apprentice intake levels for most of the year are already known and it is unlikely that there will be any significant variation in the trend to date before the end of the year. It was also decided to carry-over the 2011 forecast to 2012 because at the time the forecast was calculated, there were only a few months remaining in 2011 and there 5 were no indications from the industry or from the statistical data to suggest that the apprentice intake trend to date would vary to any significant extent during 2012. The same methodology is used to derive the forecasts of apprentice intake in the non-construction trades in 2011 and 2012. 2.2.2 Calculating the forecast for 2015 The forecasts of apprentice intake in 2015 under each scenario are based on applying the relevant apprentice intake/employment ratio to the forecast of employment in the relevant trades in 2015. The same methodology is used to derive the forecast of apprentice intake in 2015 in the non-construction trades. 2.2.3 Calculating the forecasts for 2013 and 2014 The forecasts of apprentice intake for each construction-related trade for the years 2013 and 2014 are based on applying the compound annual growth rate between 2012 and 2015 to the year 2012, and subsequently to the year 2013 to give the forecasts for 2013 and 2014 respectively. The same methodology is used to derive the forecasts of apprentice intake in the non-construction trades for the years 2013 and 2014. 2.2.4 The impact of non-Irish nationals on apprentice recruitment The methodology applied in the previous reports also took account of the fact that an increasing proportion of non-Irish nationals entering employment in the boom years coincided with a reduction in apprentice intake into those trades — indicating some displacement of apprentice recruitment by non-Irish nationals. The forecasts of employment in the trades in this report are adjusted downwards to take account of this factor, and the forecasts of apprentice intake are based on these lower levels of employment. However, the impact on the forecasts is not significant. 2.2.5 The precision of the forecasts The forecasts presented in this report should not be viewed as being absolutely precise; rather they should be treated as providing a broad indication of what the apprentice intake requirements are likely to be, given the assumptions underpinning the Economic and Social Research Institute’s (ESRI) forecast of economic growth and DKM Economic Consultant’s forecast of output for the construction industry; the choice of the appropriate apprentice/employment ratios; and the estimated impact of non-Irish nationals on the recruitment of apprentices in the trades, which are based on judgement rather than statistical fact. 6 2.3 The outlook for the construction industry The projected level of residential development over the forecast period has a particularly strong influence on the recruitment of apprentices in the constructionrelated trades because activity in this sector is relatively labour intensive. Most commentators agree that the long-term equilibrium level of new house construction is approximately 45,000 annually. Only approximately 8,500 new housing units were completed in 2010 and DKM Economic Consultant’s expect this figure to contract further in the next couple of years. While DKM expect a recovery in house building to begin in 2013, it is very difficult to accurately predict the pace of that recovery. It is expected to be quite slow due to the significant overhang of unsold houses in the market and the pervasive lack of confidence in the house building sector. DKM predict that 11,000 new housing units will be completed in 2015. This represents only 13% of the peak level of new house completions which occurred in 2006. The projected 11,000 new house completions in 2015 is below the long-term equilibrium level of approximately 45,000, but this level may not be reached for some considerable time. Even if the industry does eventually produce 45,000 new houses annually, it should not be assumed that the demand for apprentices will increase on a pro-rata basis. By that time, the level of physical infrastructure investment, which is still quite high by international standards, may be somewhat lower, which will dampen demand for apprentices in that sub-sector. It may also take some considerable time before there is positive growth in the commercial sector. Currently, this sector is characterised by high vacancy levels, weak demand and a small number of transactions. There was a significant oversupply of commercial property during the boom and it may take many years before the market fully absorbs the excess. The construction output forecast in 2015 produced by DKM Economic Consultants translates into a total employment forecast of 112,000. Recent studies have shown that on average, there are approximately 10 persons directly employed for every one million euros spent on construction activity. The forecasts herein imply that each job costs approximately €110,000 — reflecting the relatively low level of residential activity. As the industry builds more new houses and moves towards the long-term sustainable level of activity, the cost of each direct job created should decline to the average of €100,000. 2.4 Key results — forecasts of apprentice intake in the construction-related trades Firstly, the projections of apprentice recruitment in the selected construction-related trades in 2015 under the three different forecast scenarios are presented (Table 2.1). 7 Secondly, projections for each of the trades are provided on an annual basis for the period 2011-2015 under each scenario (Tables 2.2, 2.3 and 2.4). 2.4.1 Summary forecasts of apprentice intake in 2015 — under the three scenarios The forecast of apprentice recruitment in the construction-related trades in 2015 under each of the three forecast scenarios are exceptionally low relative to their peak levels.3 There is a significant difference in the projected level of apprentice recruitment in 2015 between the different scenarios (Table 2.1). It varies from 3,150 apprentices under the 1998-2010 ratio scenario to 1,250 under the 2007-2010 ratio scenario to a low of 560 under the 2010 ratio scenario. The 2015 forecast under these respective scenarios represents 42%, 17% and 8% of the peak level (i.e. corresponding to reductions of 58%, 83% and 92% respectively). It should be noted that the forecast of apprentice intake in the trades in 2015 under the 2010 ratio scenario is below the actual apprentice intake level in 2010. The reason for this result is that the DKM forecast value of construction output in 2015 — and consequently employment in that year — are below the actual value of construction output and employment in 2010 respectively. The forecast of apprentice intake levels in 2015 under the two other scenarios is above the 2010 intake levels. This is because the apprentice to employment ratios which are applied to the 2015 employment forecasts are based on the average ratios for the period 1998-2010 and 2007-2010 respectively and these ratios are considerably higher than the ratio which prevailed in 2010. Table 2.1 Construction-related trades – apprentice intake forecasts under the three forecast scenarios — 2015 1998-2010 ratio scenario 2007-2010 ratio scenario 2010 ratio scenario 2010 Intake Peak Year 2015 Forecast 2015 Forecast 2015 Forecast 373 2,270 1,240 640 340 Carpenter/joiner 96 2,127 890 230 90 Plumber 91 1,501 540 220 70 Bricklayer 10 680 130 30 10 Plasterer 12 311 90 20 10 8 161 60 20 10 13 340 150 50 10 Trade Electrician Painter/decorator Wood manufacturer/finisher Construction plant fitter Total 30 114 50 30 30 633 7,504 3,150 1,250 560 Note: forecast figures have been rounded to the nearest 10 and may not sum to the total figures due to rounding. 3 The year in which the peak level of intake was recorded varies by individual trade, but in general it occurs within the period 2004-2006. 8 2.4.2 Summary of annual forecasts of apprentice intake—under the three scenarios For planning purposes, it is necessary to provide the forecasts of apprentice intake on an annual basis over the forecast period. The forecasts for the years 2011, 2012, 2013, 2014 and 2015 under each of the scenarios are discussed and presented below. 2.4.2.1The 1998-2010 ratio scenario The forecast of apprentice intake in the construction-related trades under the 19982010ratioscenarioprovides the highest growth of the three scenarios (Table 2.2). However, growth does not emerge until 2013, at which point the expected gradual recovery in the industry begins to raise apprentice intake levels. The recovery continues through 2014 and 2015, reaching 3,150. This level of intake, however, is only 42% of the levels recorded by these trades during their peak year. Table 2.2 Construction-related trades – apprentice intake forecasts under the 1998-2010 ratio scenario— 2011-2015 Actual Trade Electrician Forecast 2010 2011 2012 2013 2014 2015 373 360 360 540 820 1240 Carpenter/joiner 96 70 70 170 390 890 Plumber 91 120 120 190 320 540 Bricklayer 10 20 20 30 60 130 Plasterer 12 10 10 10 40 90 8 20 20 30 40 60 Wood manufacture/finisher 13 10 10 20 60 150 Construction plant fitter 30 30 30 30 40 50 633 630 630 1,040 1,780 3,150 Painter/decorator Total Note: forecast figures have been rounded to the nearest 10 and may not sum to the total figures due to rounding. The projected level of apprentice recruitment for electricians in 2015 accounts for almost 40% of the total expected recruitment for the construction-related trades in that year. This is because the demand for electricians is not as strongly influenced by construction activity relative to the other construction-related trades. Nevertheless, the 2015 projected figure is 46% below the peak level of recruitment of apprentices in the trade. 2.4.2.2The 2007-2010 ratio scenario The level of apprentice intake in the construction-related trades is projected to increase to 1,250 by 2015 under the 2007-2010 ratio scenario, which is a 60% reduction on the level forecast for that year under the 1998-2010 ratio scenario. The reason why the forecasts under this scenario are so much lower compared to the 1998-2010 ratio scenario is because they are based on an average of the apprentice intake/employment ratios which have prevailed since the beginning of 9 the severe contraction in the construction industry (i.e. the period 2007-2010; Table 2.3). As in the case of the two other forecast scenarios, growth in apprentice intake is not anticipated in the first two years of the forecast period. The apprentice intake level is projected to increase by 24% in 2013 and to accelerate in the following two years, reaching 1,250 by 2015. Despite the growth in apprentice recruitment envisaged under this scenario, the 2015 forecast figure is only equivalent to 17% of the total apprentice intake level recorded by all the trades in their peak years. Table 2.3 Construction-related trades – apprentice intake forecasts under the 2007-2010 ratio scenario — 2011-2015 Trade Electrician Carpenter/joiner Plumber Bricklayer Plasterer Painter/decorator Wood manufacture/finisher Construction plant fitter Total Actual 2010 373 96 91 10 12 8 13 30 633 2011 360 70 120 20 10 20 10 30 630 2012 360 70 120 20 10 20 10 30 630 Forecast 2013 440 110 140 20 10 20 20 30 780 2014 530 160 180 20 20 20 30 30 980 2015 640 230 220 30 20 20 50 30 1,250 Note: forecast figures have been rounded to the nearest 10 and may not sum to the total figures due to rounding. 2.4.2.2The 2010 ratio scenario The forecasts of apprentice intake under the 2010 ratio scenario differs significantly from the other two forecast scenarios in that an overall reduction in apprentice intake is projected in 2015. The reason for this outcome is that the construction output forecasts, which in turn form the basis for the employment forecasts (and subsequently the apprentice intake forecasts) project lower levels of activity in 2015 than in 2010. Table 2.4 Construction-related trades – apprentice intake forecasts under the 2010 ratio scenario — 2011-2015 Trade Electrician Carpenter/joiner Plumber Bricklayer Plasterer Painter/decorator Wood manufacture/finisher Construction plant fitter Total Actual 2010 373 96 91 10 12 8 13 30 633 2011 360 70 120 20 10 20 10 30 630 2012 360 70 120 20 10 20 10 30 630 Forecast 2013 350 80 100 10 10 10 10 30 600 2014 350 80 80 10 10 10 10 30 580 2015 340 90 70 10 10 10 10 30 560 Note: forecast figures have been rounded to the nearest 10 and may not sum to the total figures due to rounding. 10 In the other two forecast scenarios, the lower level of projected output between 2010 and 2015 is more than offset by the application of ratios which are considerably higher than the ratio which prevailed in 2010, resulting in a positive trend in apprentice recruitment. This forecast is the most pessimistic for apprentice recruitment. It assumes that a combination of lower construction activity, the overhang of unemployed craftspersons and the availability of migrant crafts-persons, restricts recruitment over the forecast period to the levels broadly pertaining in 2010. 2.5 Key results — forecasts of apprentice intake in the nonconstruction-related trades The recruitment of apprentices in the four non-construction-related trades is projected to increase significantly between 2010 and 2011, reflecting the magnitude of the increase in apprentice intake levels between the first eight months of 2011 and 2010. The projected increase in apprentice intake levels for both motor mechanics and vehicle body repairers are relatively positive over the forecast period — reflecting the general increase in the population and, specifically, in car usage. Reasonably strong growth is also anticipated for both toolmakers and fitters, albeit from a low base in 2010 in the case of toolmakers. The forecast demand for the latter trade is partly driven by the anticipated strong growth in Irish exports, particularly from the multinational sector. Table 2.5 Non-construction related trades – apprentice intake forecasts, 2011-2015 Trade Actual 2010 Peak year 2011 2012 2013 2014 2015 Fitter 65 403 100 100 120 150 180 Toolmaker 31 150 40 40 50 50 60 Vehicle body repairer 28 140 40 40 50 70 100 Motor mechanic 191 551 230 230 270 330 400 Total 315 1,244 410 410 490 600 740 Note: forecast figures have been rounded to the nearest 10 and may not sum to the total figures due to rounding. 2.6 Assessment of the forecasts 2.6.1 Forecasts and current model of apprenticeship training The forecasts presented in this report are based on the current model of apprenticeship training. In particular, it is assumed that employers are solely responsible for the recruitment of apprentices and that their decisions are strongly influenced by the anticipated level of activity in the relevant sectors. 11 Obviously, the forecasts may not apply if changes are introduced to the model of apprenticeship training over the forecast period. 2.6.2 The range in forecast apprentice recruitment levels for the construction-related trades between the three scenarios in 2015 The forecast of apprentice intake in the construction-related trades presented under the 1998-2010 and the 2010 ratio scenarios in 2015 could be considered as the upper and lower boundaries respectively — based on current and historical trends. As such, the forecast of apprentice intake under the 2007-2010 ratio scenario could be considered to be the more moderate forecast of the three forecast scenarios. There is considerable variation in the forecasts presented in this report. The Apprenticeship Forecasting Study Group are of the view that the forecasts under the 1998-2010 ratio scenario are implausible in the medium-term because they are based on ratios which are strongly influenced by the unprecedented boom in activity in the industry. It is reasonable to assume that this ‘upper boundary’ will not be achieved without a strong recovery. Consequently, the Group are of the view that it would be imprudent to base the planning of future provision on this forecast. Equally, it would be unwise to base planning provision in 2015 on the forecast which is based on the lowest apprentice/employment ratio (i.e. 2010 ratio scenario) on record. The Study Group are of the view that intake levels in 2015 will, in all probability, be somewhat higher than the 2015 forecast under this scenario. While the over-hang of unemployed construction craft workers and apprentices may depress the recruitment of new apprentices in the short-term, the magnitude of the over-hang may diminish in time. Furthermore, employers have continued to recruit apprentices despite the availability of a very large number of young, qualified craftsworkers — and there is no reason to assume that they will change their behaviour in this regard. The choice of the appropriate forecast is a matter of judgement. However, the Study Group are advising that it would be unwise to base planning provision on the forecasts associated with either the upper and lower boundary scenarios. 2.7 Conclusions In conclusion, this report provides a forecast of the probable level of apprentice intake in four non-construction trades for each year over the period 2011-2015 inclusive. Due to the extreme volatility experienced by the construction industry in the last decade, it was considered prudent to present three alternative forecast scenarios of apprentice intake in the eight construction trades including what we consider to be both the upper and lower boundaries of possible future intake levels. The third forecast scenario represents an intermediate position between these two boundaries and for that reason might be considered a guide for planning purposes. 12 3. 3.1 Methodology Introduction Over the last two years, the Skills and Labour Market Research Unit in FÁS have been producing five year forecasts of apprentice recruitment requirements for the InterDepartmental Study Group on Apprenticeship Forecasting established by the Department of Education and Skills and the Department of Jobs, Enterprise and Innovation. Initially, forecasts were produced for six construction-related trades; however as of last year, the forecasts have been extended to cover eight construction trades and four non-construction trades. These trades account for approximately 80% of total annual apprentice intake levels. 3.2 Forecasts of employment in the construction-related trades The forecasts of employment for the construction-related trades to the year 2015 are calculated using two distinct methods. These methods are described below. 3.2.1 Forecasts of employment in the construction-related trades in the construction sector The forecasts of employment in the construction-related trades in the construction industry were based on detailed output forecasts for 16 sub-sectors of the construction industry for the period 2011-2015, provided by DKM Economic Consultants for this project. The output forecasts were translated into total employment using a regression equation which was tested retrospectively for ‘goodness of fit’. The total employment figure was divided between those who work mainly in residential development — including those who work on new units and in repair and maintenance — and those who work elsewhere in the industry (i.e. non-residential development) based on data provided by the Central Statistics Office. This data is from its Quarterly National Household Survey and it is available at the level of individual occupations. Those who work in non-residential construction sectors are further divided between those who work in physical infrastructure4 and those who work on other buildings, both commercial and public buildings (i.e. general contracting)5. This division was based on data provided by one of the largest private sector employers in the construction industry. 4 The physical infrastructure segment of the construction industry covers investment expenditure allocated by the Government for roads, water services, airports, seaports and harbours, energy and telecommunications and public transport. 5 This segment of the construction industry is comprised of private non-residential construction and social infrastructure. The private non-residential construction sector covers private sector building investment (new and repair, maintenance and improvement) in the following areas: industrial, commercial, agriculture and tourism, including hotels, restaurants and conference centres as well as privately owned cultural buildings such as museums, art galleries, racecourses and marinas. The social infrastructure segment of the construction industry comprises of public and private sector building investment (new and repair, maintenance and improvements) in education, hospitals, public buildings, local authority services and public sporting facilities). 13 The advantage of creating a detailed sub-sector profile of current employment is that it allows for a very refined forecast to be developed. Of course, some of those employed in each of the construction-related trades are employed in non-construction sectors. The forecast of employment in each trade in these non-construction sectors is based on the same methodology which is used to forecast employment in the non-construction related trades. This methodology is elaborated in Section 3.4. The model for translating the forecast of construction output for each sub-sector of the industry into employment in the construction-related trades is illustrated in Figure 3.1 below. Figure 3.1 FÁS construction employment forecasting model Total construction output Total employmen t forecasts Residential sector employme nt New Employment by occupation R&M Employment by occupation Non residential sector employmen t G.C. Employment by occupation Infra s. Employment by occupation Total employment forecasts by occupation Note: New — refers to employment in new residential construction; R&M — refers to employment in residential repair and maintenance; G.C. — refers to employment in general contracting; and infras.— refers to employment in the physical infrastructure segment of the construction sector. 3.2.2 Forecasts of employment in the construction-related trades working in other sectors of the economy (i.e. non-construction sectors) The DKM construction output forecasts, translated into employment for each of the trades, provide a very good basis for forecasting the future level of demand for the apprentices who are expected to work primarily in the construction sector. However, some of the apprentices employed in the construction-related trades work in sectors other than construction. This is particularly true of electricians but it is also the case to a lesser extent for all the other construction-related trades. 14 Figure 3.2 presents a graphical representation of the employment forecasting model used to derive the forecasts for those employed in the construction-related trades in the non-construction sectors. As shown in the left hand side of the diagram, the method consists of applying a ‘weighted average employment growth rate’ to the number in each trade which is employed outside of the construction industry in the base year (2010) and to each subsequent year of the forecast period. The ‘weighted average employment growth rate’ is derived, first, by estimating the average historical share of employment for each trade in each sector of the economy over the period 1998-2005. These average historical shares of employment in each sector are then multiplied by the annual projected FÁS/ESRI growth rates for the period 2011-2015 in the corresponding sector. This gives an annual forecast growth rate for each trade in each sector and these growth rates are added together to give a weighted average annual growth rate for each trade over the forecast period. These rates are applied to the 2010 employment stock in non-construction sectors to give an annual employment forecast for each trade over the period 2011-2015. The construction industry is not included in the calculation of the ‘weighted average’ because the forecast is only for employment for each trade in the non-construction sectors of the economy. When this forecast is calculated, it is added to the forecast of employment in the construction industry to provide a forecast of total employment in the construction-related trades. There are a number of caveats, however. In the case of the occupation of ‘construction plant fitter’, it is assumed that the numbers employed in this trade are equivalent to the number of fitters working in the construction industry, and consequently, the forecast of total employment in this occupation is based solely on the employment forecast derived from the DKM output forecast for the construction industry.6 In the case of the trade ‘wood manufacturer and finisher', unlike the situation in respect of the other construction related trades, the construction industry is included in the calculation of the ‘weighted average growth rate’. This is because it was not possible to apply the detailed DKM output figures to this occupation 7 as the numbers were too small. Consequently, the DKM employment growth rate for the construction sector was used for all occupations in the calculation of the weighted average growth rate.8 The reason why the overall growth rate is applied is because this individual occupation is not identified in the official classification. 6 This assumption is necessary because this occupation is not classified in the official statistical occupational classification used by the Central Statistics Office. Therefore, the number of fitters working in the construction sector is used as proxy for the total number of construction plant fitters in employment. 7 This was the situation in respect of cabinet-makers. However, the more composite occupation of ‘wood manufacturer and finisher ‘may facilitate the application of the DKM model and this issue will be explored during the preparation of the next report. 8 The FÁS/ESRI employment growth rate for the construction industry is out-of-date and could be considered overly optimistic. 15 3.3 Forecasts of employment in the non-construction related trades The method for forecasting employment in the non-construction trades is also based on the ‘weighted average method’ but in this case the construction industry growth rates, as derived from the DKM model, is included in the calculation. The FÁS/ESRI growth rates for the construction are not used in the forecasts of employment because they are considered to be out-of-date and overly optimistic. Figure 3.2 provides a graphical representation of the forecasting model used to derive the employment forecasts for these trades. Finally, the FÁS/ESRI forecasts of employment for the different sectors of the economy are those presented in the publication FÁS/ESRI Occupational Employment Forecasts 20159, published in February 2010. The sectoral forecasts were provided by the ESRI from its macro-economic model of the economy. Many commentators consider the forecasts to be rather optimistic. However, in the absence of any other detailed employment forecasts to 2015, there is no alternative to using the FÁS/ESRI report. 9 Report No. 13. Occupational Employment Forecasts, 2015. J. Behan and C. Shally. February 2010. 16 Figure 3.2 Employment forecasting model for construction-related trades working in nonconstruction sectors and non-construction related trades working in the economy ESRI Macro Model Sectoral employment forecast growth rates Employment shares Occupation x sector 2011-2015 1998-2005 10 sectors CSO, QNHS Weighted average employment growth rate 2011-2015 Employment 2010 construction-related trades in non-construction sectors Employment forecast 2015 construction-related trades in non-construction sectors Employment forecast 2015 Employment 2010 non-construction-related trades construction-related trades in the construction sector Total employment forecast 2015 Total employment forecast 2015 non construction related trades construction-related trades 17 3.4 Factors influencing the recruitment of apprentices There are many diverse factors which may impact on the recruitment of new apprentices over the forecast period and these are discussed below. 3.4.1 The current significant number of young unemployed crafts-workers and redundant apprentices There are currently a significant number of young unemployed construction craftsworkers and redundant apprentices in the Irish labour force. This is one of the possible factors contributing to the reluctance of employers to sponsor new apprentice recruits over the forecast period. There was a total of approximately 138,000 persons employed in the construction trades in 2006 and this declined by 50% or 68,700 by 2010. However, it would appear from the figures that a considerable number of unemployed persons emigrated during this period as the total number of unemployed persons at the end of 2010 was approximately 40,900 (Table 3.1). Moreover, the majority of those unemployed are below 45 years of age. It is reasonable to assume that at least some employers who would normally recruit new apprentices to meet their future skills needs are likely to recruit from the pool of relatively young qualified crafts-workers and redundant apprentices. Consequently, the existence of this large number of young unemployed crafts-workers may have the effect of reducing the recruitment of new apprentices over the forecast period to below the level it might otherwise be. Table 3.1 Construction-related trades – Numbers employed in 2006 and 2010; numbers unemployed below 45 years (annual averages – 000s; Q4 2010) Number Employed Number unemployed 2006 2010 Absolute difference 2006-2010 Electrician 30,000 18,300 -11,700 3,800 5,100 Carpenter/joiner 39,800 18,700 -21,100 10,300 13,500 Plumber 15,500 10,700 -4,800 2,900 3,600 Bricklayer 16,900 4,500 -12,300 5,000 6,100 Plasterer 14,700 4,600 -10,100 4,500 5,600 Painter/decorator 11,900 7,100 -4,800 4,300 5,800 Wood manufacturer/finisher 5,500 3,500 -2,100 * * Construction plant fitter 3,700 1,800 -1,900 * * 138,000 69,300 -68,700 31,800 40,900 Trade Total Below 45 years All persons Note: * The number of observations for the occupations of wood manufacturer/finisher and construction plant fitter generated unemployment figures of less than 1,000. The figures are from survey data (the Quarterly National Household Survey) which is subject to sampling error. In cases where figures are less than 1,000 they are not reported as they are too small for statistical inference. 18 To quantify the possible impact of the potential ‘overhang’ of available qualified crafts-workers and redundant apprentices, a replacement rate was calculated for each trade and an estimate was made for the number of years it would take for each trade to absorb the unemployed aged below 45 years. The result shows that if employers gave priority to employing the unemployed crafts-workers and redundant apprentices, there would be no recruitment of new apprentices over the forecast period, assuming that all of the unemployed were available to work in the relevant trades. However, employers have continued to recruit apprentices in the trades — albeit, in relatively small numbers — despite the existence of the large pool of unemployed crafts-workers and redundant apprentices. Consequently, it was concluded that it is not possible to model the impact of the ‘overhang’ on the future recruitment decisions of employers. 3.4.2 High court decision on the joint labour committee’s system of wage determination The High Court has decided that the Joint Labour Committee’s system of determining wages is unconstitutional. This decision may result in a reduction in craft (and hence apprentice) remuneration levels and this may encourage employers to increase their planned levels of new apprentice recruitment over the forecast period, adding a further aspect of uncertainty to forecasting. 3.4.3 Forecast share of non-Irish nationals represented in the workforce The forecasts of apprentice intake are adjusted for trades for which the inflow of a significant number of non-Irish nationals coincided with a notable contraction in apprentice intake, and where the proportion of non-Irish nationals has continued to remain relatively high. This trend suggests that there may have been some element of substitution between the employment of non-Irish nationals and the recruitment of apprentices. The shortage of crafts-workers attracted a significant number of non-Irish nationals into most of the trades, particularly after 2004 when Ireland was one of only three countries within the EU to offer full employment mobility to workers from the new member states. For the purpose of the forecasting exercise, it is assumed that 5% of the workforce of most of the trades in 2015 will be composed of non-Irish nationals. In other words, the forecasts of apprentice intake are calculated solely on the projected 2015 Irishnational employment stock figure. 3.5 Forecasts of apprentice intake levels in the constructionrelated trades Once detailed annual employment forecasts have been produced for each of the construction-related trades, forecasts of apprentice intake levels are calculated 19 based on applying the historical ratio of apprentice intake to total employment for each trade to the 2015 forecast employment figures. In the previous two reports, the ratio which was applied to the 2015 employment forecast figures was an average ratio for a period of time within the period 19982007. The average ratio chosen for a particular trade was for the period in which the relationship between apprentice intake and employment was relatively stable. This appeared to be a reasonable approach to take as there has been a strong historical relationship between apprentice intake numbers and employment in the relevant trades. However, over the last four years, it has become apparent that the historical relationship between apprentice intake levels and employment has ceased to exist. Specifically, since 2007 the levels of apprentice intake began to decline and they have dramatically contracted to date (i.e. 90%); far exceeding the decline in employment in the construction industry over the same period (38%). The fact that the historical relationship between apprentice intake levels and employment no longer exists suggests that there is no obvious basis for choosing the most appropriate ratio to forecast the levels of apprentice intake. In addition, there are many diverse issues which may impact on the recruitment of new apprentices over the projection period. Consequently, the Study Group on Apprenticeship Forecasting decided to present three different forecasts of apprentice intake in 2015 based on three different apprentice/employment ratios, and these are presented in the form of three different scenarios. A graphical representation of the model used to derive the forecast of apprentice intake is shown in Figure 3.3. The first scenario — the 1998-2010 ratio scenario — is based on the assumption that the average apprentice intake to total employment ratio which prevailed over the last twelve years (i.e. 1998-2010 inclusive) will assert itself over the forecast period. The ratio calculated for each construction-related trade is applied to the corresponding forecasts of employment for the year 2015. The second scenario — the 2007-2010 ratio scenario — is based the assumption that the average apprentice intake to total employment ratio which was experienced over the last four years (i.e. 2007-2010 inclusive) — which corresponds to the period when the construction industry has been contracting — will prevail over the forecast period. The ratio calculated for each trade is applied to the forecasts of employment for the year 2015. The third scenario — the 2010 ratio scenario — is based on the assumption that the ratio which occurred in 2010 and which is the lowest recorded to date for each construction-related trade, will persist over the period 2013-2015. The ratio calculated for each trade in that year is applied to the forecast employment figures for the year 2015. 20 It should be noted that a different method was used to calculate the apprentice intake levels in 2011 and 2012. At the time of the analysis, the apprentice intake levels for each trade for the eight months of 2011 were known. Consequently, it was possible to create a more accurate forecast for that year by assuming that the difference between apprentice intake levels in the first eight months of 2010 and in the same period in 2011 would continue for the remaining five months of 2011. It was also assumed that the intake levels in 2012 would not differ significantly from those which prevail in 2011, as all the relevant indicators suggest that the relatively low level of activity in the industry will persist for at least another year. With regard to the forecasts for the years 2013 and 2014, these are based on the compound annual growth rate between 2012 and 2015. 3.6 Forecasts of apprentice intake levels in the non-construction related trades The forecast of apprentice intake for 2015 in each of the non-construction trades is based on applying the ratio of apprentice intake to employment over the period 1998-2010 to the employment forecasts for the year 2015. This ensures that both the recession years of the period 2007-2010 and the boom years of the Celtic Tiger are included in deriving the forecast of apprentice intake in 2015. The industries in which these trades are employed have not suffered the ‘melt-down’ experienced by the construction industry. Consequently, there is no reason for limiting the calculation of the apprentice/employment ratio to the period 2007-2010 or to the year 2010. Thus, only one forecast scenario is presented for the non-construction trades. The method of calculating the forecast of apprentice intake for the years 2011 and 2012 is similar to the method used for calculating the forecast of apprentice intake for construction-related trades in those years. Similarly, the forecasts for the years 2013 and 2014 are also based on the compound annual growth rate between 2012 and 2015. Figure 3.3 Apprentice intake forecasting model — construction and non-construction related trades Apprentice intake/total employment ratio Total employment forecast (average historical ratio) 2015 Forecast apprentice intake levels 2015 21 Appendix A – Background to the Report In 2009, the Government established a committee, representative of the Department of Education and Skills, the Department of Jobs, Enterprise and Innovation, the Higher Education Authority and FÁS, to consider the impact of the dramatic contraction in construction output on the future skills and training requirements of the industry. This committee, in turn, established a ‘Study Group’ which was given the specific task of producing forecasts of apprentice recruitment for six construction-related trades to the forecast year 2013. The Skills and Labour Market Research Unit (SLMRU) of FÁS conducted the modelling exercise and forecasts were produced for such trades in June 2009. In mid-2010, the Study Group conducted the same exercise to the forecast year 2014. In addition, the Study Group was requested to estimate the apprentice recruitment for as many of the remaining trades as was possible. A review of the currently available data showed that a forecast could be made for six other trades, including two additional construction trades, cabinet maker and construction plant fitter. The SLMRU also conducted this forecast modelling exercise for 2014. The members of the Study Group on Apprenticeship Forecasting are shown in Table A1.1. Table A1.1 Members of the study group on apprenticeship forecasting Maurice Doran Chair, Higher Education Authority Padraig Creed Department of Education and Skills* Paul Keating Department of Education and Skills John McGrath Skills and Labour Market Research Unit, FÁS Caroline Shally Skills and Labour Market Research Unit, FÁS Justin Sinnott Higher Education Authority Nicola Tickner Department of Education and Skills *Padraig was replaced by Paul Keating, during the completion of this report. 22 Appendix B – Apprenticeship Profiles by Trade B1. Electrician B1.1 Historical employment trends With the exception of the trade of carpentry and joinery, the electrical trade provides the highest employment among the designated trades. While the majority of all employed electricians are working in the construction sector, there is a significant proportion working outside of that industry, particularly in areas such as utilities and manufacturing. The proportion working outside of construction is likely to increase as activity in the construction sector continues to contract further. The historical trends indicate this change in the distribution pattern of employment for this trade. In 1998, 62% of all employed electricians were working in construction and the share increased to 76% in 2007, reflecting the significant increase in construction activity during that period. However, as construction activity began to contract sharply since 2007, many electricians became unemployed and the proportion declined to 63% in 2010 — almost equivalent to the proportion which prevailed in 1998. It is assumed that this trend will continue as some of the sectors of employment for electricians, such as high technology manufacturing, are expected to exhibit a higher level of growth over the forecast period compared to the construction industry. Figure B1.1 Total employment of electricians and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 31000 29000 27000 25000 23000 21000 19000 17000 15000 10.0% 8.0% 6.0% 4.0% 2.0% 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0.0% number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS Employment of electricians almost doubled between 1998 and 2007, increasing from 16,400 to 30,400. Since 2007, the numbers employed declined dramatically, decreasing by just over 12,000 to 18,300 in 2010, reflecting the severe contraction in activity in the construction sector (Figure B1.1). These figures imply that the number of net job losses recorded over the last four years was not significantly below the number of net job gains experienced between 1998 and 2007. 23 B1.2 Historical share of non-Irish nationals in the workforce Despite the significant increase in employment, the share of non-Irish nationals represented in the workforce of this trade peaked at 8% in 2007 and declined to just below half this share in 2010 (Figure B1.1). This trade had the lowest representation of non-Irish nationals in its workforce during the boom years of construction activity relative to the other construction-related trades. For reasons of safety, employers have to exercise great care in ensuring that any electrician they recruit is suitably qualified and it may be difficult for employers to determine if the level of qualification is appropriate in respect of some non-Irish nationals. For these reasons, it is assumed that the share of non-Irish nationals in the workforce of electricians will be negligible in 2015. B1.3 Historical apprentice intake trends With the exception of the years 2002 and 2003, the annual level of apprentice intake in this trade remained relatively stable during the period 1998-2007 (Figure B1.2). The level increased from 1,660 in 1998 to 2,270 in 2006. However, there was a dramatic reversal in this trend since 2006, with the level declining to 373 in 2010. Figure B1.2 Annual intake of apprentice electricians; ratio of annual intake to total employment, 1998-2010 (number; %) 3000 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2000 1000 annual intake 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B1.4 Supply of unemployed crafts-persons and redundant apprentices There are a significant number of unemployed electrical crafts-persons and redundant apprentices in the Irish labour force. The number of persons employed in the trade declined by 11,700 between 2006 and 2010, from 30,000 in 2006 (Table B1.1). At the end of the fourth quarter of 2010, there were just over 5,000 unemployed persons and almost 4,000 of these were aged below 45 years. Given the existence of a relatively large pool of young unemployed persons, it is likely that this will result in some employers recruiting a smaller number of new apprentices into the trade over 24 the forecast period. It should be noted that not all of the unemployed will be available to work in the trade due to factors such as emigration, retirement, sickness etc. Table B1.1 Electricians — numbers employed in 2006 and 2010 (annual averages — ‘000s); numbers unemployed aged below 45 years and all persons, Q4 2010 (numbers — ‘000s) Number employed All ages 2006 30,000 Change in employment Number unemployed All ages All ages <45 years All ages 2010 2006-2010 Q4 2010 Q4 2010 18,300 -11,700 3,800 5,100 Source: Analysis by FÁS (SLMRU) based on based on CSO data from the QNHS B1.5 Forecast of employment Employment of electricians is projected to continue declining until 2011 and to stabilise in 2012, measuring almost 16,000 at the end of 2012 (Figure B1.3). It is anticipated that employment will return to a positive trend in 2013, reaching just under 17,000 in 2015. The reversed trend in employment from 2013 to the end of the forecast period reflects DKM’s expectation of some recovery in house building, albeit from an exceptionally low level. Figure B1.3 Actual (1998-2010) and forecast (2011-2015) employment of electricians 35,000 30,000 25,000 20,000 15,000 10,000 5,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F 2012F 2013F 2014F 2015F 0 B1.6 Forecast of apprentice intake The forecast of apprentice intake in 2015 under the three different forecast scenarios — the 1998-2010 ratio scenario; the 2007-2010 ratio scenario; and the 2010 ratio scenario — is presented below. The forecasts are illustrated graphically in Figure B1.4 and they are also shown together with the forecasts of employment in 2015 in Table B1.2. The forecast of apprentice intake in 2015 under each respective scenario is based on a different apprentice intake to total employment ratio — namely, the average ratio for the period 1998-2010; the average ratio for the period 2007-2010; and the ratio in 2010. 25 The 1998-2010 ratio scenario The average ratio of apprentice intake to total employment over the period 19982010 is 7.4%. When this ratio is applied to the 2015 forecast of employment of 16,800, the apprentice recruitment requirement is 1,240. The 2007-2010 ratio scenario The average ratio of apprentice intake to total employment over the period 20072010 is 3.8%. When this ratio is applied to the 2015 forecast of employment for the trade, the apprentice recruitment requirement is 640 in 2015. The 2010 ratio scenario The ratio of apprentice intake to total employment in 2010 is 2%. When this ratio is applied to the 2015 forecast of employment for the trade, the apprentice recruitment requirement is 340. Figure B1.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake of electricians under the three forecast scenarios 2,500 2,000 1,500 1,000 500 1998-2010 ratio scenario 2007-2010 ratio scenario 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0 2010 ratio scenario Table B1.2 Actual (1998-2010) and forecast (2011-2015) employment and apprentice intake of electricians under the three forecast scenarios Employment Number of apprentices 1998-2010 2007-2010 2010 ratio scenario ratio scenario ratio scenario Actual 1998 16,400 1,660 1,660 1,660 1999 17,600 1,921 1,921 1,921 2000 21,000 2,151 2,151 2,151 2001 21,300 2,156 2,156 2,156 2002 22,700 1,813 1,813 1,813 2003 24,100 1,770 1,770 1,770 2004 24,600 2,031 2,031 2,031 2005 27,500 2,159 2,159 2,159 2006 30,000 2,270 2,270 2,270 2007 30,400 2,055 2,055 2,055 2008 27,300 1,108 1,108 1,108 2009 20,800 522 522 522 2010 18,300 373 373 373 Forecast 2011 2012 2013 2014 2015 16,200 15,900 16,100 16,400 16,800 360 360 540 820 1,240 26 360 360 440 530 640 360 360 350 350 340 B2. Carpenter and Joiner B2.1 Historical employment trends Traditionally, the trade of carpentry and joinery accounted for the largest number of persons employed among the designated trades. Four fifths of those employed in this trade are working in the construction sector, particularly in the housing subsector. Employment in this trade increased from 22,200 in 1998 to reach a peak level of 43,400 in 2007; almost a two-fold increase in the numbers employed (Figure B2.1). Following a modest decline in 2008, employment began to contract sharply, declining to 18,700 in 2010. This represents almost a 60% reduction in employment when compared to the peak level. Figure B2.1 Total employment of carpenters and joiners and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 45,000 20.0% 40,000 15.0% 35,000 30,000 10.0% 25,000 5.0% 20,000 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0.0% 1998 15,000 number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS B2.2 Historical share of non-Irish nationals in the workforce The share of non-Irish nationals represented in the workforce of carpenters and joiners was 5% in 2004; it increased to 9% in 2005 before peaking at 16% in 2007 (Figure B2.1). Although the share has declined since 2007, it continued to remain at a high proportion, 13% in 2010. B2.3 Historical apprentice intake trends The apprentice recruitment levels began to contract two years prior to when the employment levels of this trade began to decline (Figure B2.2). With the exception of the year 2002, the apprentice recruitment levels increased steadily between 1998 and 2005, mirroring the increases in the employment stock. The apprentice recruitment level peaked at 2,127 in 2005 and deteriorated rapidly thereafter, reaching 94 in 2010. 27 The increase in the recruitment of non-Irish nationals between 2005 and 2007 may have had a negative impact on the apprentice recruitment levels. Although, the share of non-Irish nationals in 2006 remained similar to the 2005 share, the number was relatively high. This trend suggests that some employers may have substituted non-Irish workers for apprentices. In the forecasting exercise, the forecast of employment in 2015 is adjusted downwards to take account of an assumed 5% share of non-Irish nationals in the workforce of this trade. Hence, the forecast of apprentice intake in 2015 is based solely on the Irish-national employment stock. Figure B2.2 Annual intake of apprentice carpenters and joiners; ratio of annual intake to total employment, 1998-2010 2500 7.0% 6.0% 2000 5.0% 1500 4.0% 1000 3.0% 2.0% 500 1.0% annual intake 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0.0% 1998 0 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B2.4 Supply of unemployed crafts-persons and redundant apprentices The existence of a relatively large number of young unemployed crafts-workers and redundant apprentices in this trade in the Irish labour force may result in some employers recruiting a smaller number of new apprentices into the trade over the forecast period. There were approximately 39,800 persons employed in this trade in 2006 and this decreased by 53% by 2010. In the fourth quarter of 2010, the total number unemployed was approximately 13,500, suggesting that a considerable number of the unemployed may have emigrated between 2006 and 2010 (Table B2.1). Table B2.1 Carpenters and joiners — numbers employed in 2006 and 2010 (annual averages — ‘000s); numbers unemployed aged below 45 years and all persons, Q4 2010 (numbers — ‘000s) Number employed All ages 2006 39,800 Change in employment Number unemployed All ages All ages <45 years All ages 2010 2006-2010 Q4 2010 Q4 2010 18,700 -21,100 10,300 13,500 Source: Analysis by FÁS (SLMRU) based on based on CSO data from the QNHS Moreover, over three-quarters of those unemployed in the final quarter of 2010 were below 45 years of age. However, it should be noted that not all of those 28 unemployed may be available to work in the trade due to factors such as emigration, illness, death, etc. over the projection period. Nevertheless, it is likely that some of the unemployed will be available to fill vacancies that arise over the forecast period — thereby reducing some employers’ need to recruit new apprentices. B2.5 Forecast of employment Employment of carpenters and joiners is projected to continue declining until 2012 and to return to an upward trend in 2013 (Figure B2.3 and Table B2.2). It is expected to reach 17,600 by the end of 2015, reflecting DKM’s expectation of some recovery in both new house building and residential repair and maintenance activity from the year 2013. Figure B2.3 Actual (1998-2010) and forecast (2011-2015) employment of carpenters and joiners 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 49,000 44,000 39,000 34,000 29,000 24,000 19,000 14,000 B2.6 Forecast of apprentice intake The forecast of apprentice intake in 2015 under the three different forecast scenarios — the 1998-2010 ratio scenario; the 2007-2010 ratio scenario; and the 2010 ratio scenario — is presented below. The forecasts are illustrated graphically in Figure B2.4 and they are also shown together with the forecasts of employment in 2015 in Table B2.2. The forecast of apprentice intake in 2015 under each respective scenario is based on a different apprentice intake to total employment ratio — namely, the average ratio for the period 1998-2010; the average ratio for the period 2007-2010; and the ratio in 2010. The 2015 employment forecast of carpenters and joiners of approximately 17,600 is reduced by the anticipated 5% share of non-Irish nationals in the workforce of the trade in that year. Consequently, the forecast of apprentice intake is calculated on the Irish-national employment stock of approximately 16,700 in 2015. The 1998-2010 ratio scenario The average ratio of apprentice intake to total employment of 5.3% for the period 1998-2010 is applied to the 2015 forecast Irish-national employment stock and this gives an apprentice recruitment requirement of 890. 29 The2007-2010 ratio scenario The average ratio of apprentice intake to total employment of 1.4% for the period 2007-2010 is applied to the 2015 forecast Irish-national employment stock and this gives an apprentice recruitment requirement of 230. The 2010 ratio scenario The 2010 ratio of apprentice intake to total employment of 0.5% is applied to the 2015 forecast Irish-national employment stock and this gives an apprentice recruitment requirement of 90. Figure B2.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake for carpenters and joiners under the three forecast scenarios 2,500 2,000 1,500 1,000 500 1998-2010 ratio scenario 2007-2010 ratio scenario 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0 2010 ratio scenario Table B2.2 Actual (1998-2010) and forecast (2011-2015) employment and apprentice intake for carpenters and joiners under the three forecast scenarios Employment Number of apprentices Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 22,200 25,100 27,800 28,900 31,800 32,900 36,600 38,700 39,800 43,400 39,500 27,800 18,700 1998-2010 ratio scenario 1,180 1,431 1,618 1,665 1,548 1,850 2,089 2,127 1,908 1,358 511 136 96 Forecast 2011 2012 2013 2014 2015 16,000 15,600 16,000 16,800 17,600 70 70 170 390 890 30 2007-2010 ratio scenario 1,180 1,431 1,618 1,665 1,548 1,850 2,089 2,127 1,908 1,358 511 136 96 2010 ratio scenario 1,180 1,431 1,618 1,665 1,548 1,850 2,089 2,127 1,908 1,358 511 136 96 70 70 110 160 230 70 70 80 80 90 B3. Wood Manufacturer and Finisher B3.1 Historical employment trends As part of the development of apprenticeship programmes, FÁS replaced the individual apprenticeships of cabinet making and wood machining with the new apprenticeship ‘wood manufacturing and finishing’ in November 2010. Consequently, apprentice recruitment to the two former apprenticeships no longer exists. Forecasts of apprentice intake in the wood manufacturing and finishing apprenticeship are produced for the period 2011-2015. It should be noted that the combined historical annual number of apprentices in the cabinet making and wood machining apprenticeships prior to November 2010 are used to establish the appropriate apprentice intake/employment ratios in deriving forecasts of apprentice intake for the trade of wood manufacturer and finisher. Most employed wood manufacturers and finishers work in the furniture sector and, consequently, from a national statistical classification perspective, they are classified as belonging to the traditional industry sector. However, the demand for wood manufacturers and finishers is intrinsically linked to the level of construction activity as they are involved in making furniture for new homes, renovations and extensions and for office and retail premises. Consequently, the future apprentice recruitment for wood manufacturers and finishers is determined by the projected level of building activity rather than the anticipated level of employment in traditional industries. Employment of wood manufacturers and finishers peaked at 5,500 in 2006 and declined in the period thereafter, decreasing to 3,500 in 2010 (Figure B3.1). number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics 31 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Figure B3.1 Total employment of wood manufacturers and finishers and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 6,000 20.0% 18.0% 5,500 16.0% 5,000 14.0% 12.0% 4,500 10.0% 4,000 8.0% 6.0% 3,500 4.0% 3,000 2.0% 2,500 0.0% B3.2 Historical share of non-Irish nationals in the workforce The share of non-Irish nationals represented in the workforce of this trade was 6% in 2005 and it increased to peak at 16% in 2009. Although, the share declined in 2010, it remained relatively high, at 10%. B3.3 Historical apprentice intake trends The annual apprentice intake level declined notably in 2007. The contraction gathered momentum in 2008 and it continued in the subsequent years to 2010. The intake level decreased from 168 in 2007 to 13 in 2010 — a reduction of over 90% (Figure B3.2). Figure B3.2 Annual intake of apprentice wood manufacturers and finishers; ratio of annual intake to total employment, 1998-2010 annual intake 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1998 400 350 300 250 200 150 100 50 0 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics The considerable reduction in apprentice intake levels may have been influenced by the significant recruitment of non-Irish workers in the trade from 2006 to 2008. While the number of non-Irish nationals varied over this period, the number remained at a relatively high level. As in the case of carpenters and joiners, the influx of a significant number of non-Irish nationals seems to have had a negative impact on apprentice intake levels. B3.4 Supply of unemployed crafts-persons and redundant apprentices Between 2006 and 2010, the number of persons employed as wood manufacturers and finishers decreased by over one-third to approximately 3,500. However, at the end of the fourth quarter of 2010, less than 1,000 persons (i.e. crafts-persons and redundant apprentices) were unemployed in this trade, suggesting that some of the unemployed between 2006 and 2010 may have emigrated (Table B3.1). Moreover, most of those unemployed at the end of the fourth quarter of 2010 were relatively young (i.e. below 45 years of age). Given the pool of relatively young unemployed persons, some employers may be reluctant to recruit new apprentices into the trade over the projection period. It should be noted that not all of the 32 unemployed may be available to work in trade due to factors such as emigration, illness etc. Table B3.1 Wood manufacturers and finishers — numbers employed in 2006 and 2010 (annual averages — ‘000s); numbers unemployed aged below 45 years and all persons, Q4 2010 (numbers—‘000s) Number employed All ages Change in employment Number unemployed All ages All ages <45 years All ages 2006 2010 2006-2010 Q4 2010 Q4 2010 5,500 3,500 -2,100 * * Source: Analysis by FÁS (SLMRU) based on based on CSO data from the QNHS Note: The numbers unemployed in this occupation are not reported by the CSO as they are relatively small (i.e. below 1,000). The numbers may be subject to sampling error as the data is based on a survey — the Quarterly National Household Survey. B3.5 Forecast of employment Employment of wood manufacturers and finishers is expected to remain virtually unchanged over the period 2011-2015 — at or just above 3,000 annually (Figure B3.3). Figure B3.3 Actual (1998-2010) and forecast (2011-2015) employment of wood manufacturers and finishers 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F 2012F 2013F 2014F 2015F 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 B3.6 Forecast of apprentice intake The forecast of apprentice intake in 2015 under the three different forecast scenarios — the 1998-2010 ratio scenario; the 2007-2010 ratio scenario; and the 2010 ratio scenario — is presented below. The forecasts are illustrated graphically in Figure B3.4 and they are also shown together with the forecasts of employment in 2015 in Table B3.2. The forecast of apprentice intake in 2015 under each respective scenario is based on a different apprentice intake to total employment ratio — namely, the average ratio for the period 1998-2010; the average ratio for the period 2007-2010; and the ratio in 2010. The 1998-2010 ratio scenario The average ratio of apprentice intake to total employment of 4.7% for the period 1998-2010 is applied to the 2015 forecast of employment of 3,300 for the trade and this results in an apprentice recruitment requirement of 150. 33 The 2007-2010 ratio scenario The average apprentice intake to total employment ratio of 1.4% for the period 2007-2010 is applied to the 2015 forecast of employment for the trade and this results in an apprentice recruitment requirement of 50. The 2010 ratio scenario The ratio of apprentice intake to total employment of 0.4% for the year 2010 is applied to the 2015 forecast of employment and this results in an apprentice recruitment requirement of 10. Figure B3.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake for wood manufacturers and finishers under the three forecast scenarios 1998-2010 ratio scenario 2007-2010 ratio scenario 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 400 350 300 250 200 150 100 50 0 2007-2010 ratio scenario Table B3.2 Actual 1998-2010) and forecast (2011-2015) employment and apprentice intake of wood manufacturers and finishers under the three forecast scenarios Employment Number of apprentices Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3,800 3,700 4,800 4,800 4,700 4,200 4,200 4,500 5,500 5,200 5,300 3,900 3,500 1998-2010 ratio scenario 281 329 340 324 257 232 218 195 221 168 80 24 13 Forecast 2011 2012 2013 2014 2015 3,100 3,000 3,000 3,200 3,300 10 10 20 60 150 34 2007-2010 ratio scenario 281 329 340 324 257 232 218 195 221 168 80 24 13 2010 ratio scenario 281 329 340 324 257 232 218 195 221 168 80 24 13 10 10 20 30 50 10 10 10 10 10 B4. Brick and Stone-Layer B4.1 Historical employment trends Employment of brick and stone-layers peaked at 16,900 in 2006 and it declined significantly in the subsequent years, decreasing to 4,500 in 2010 (Figure B4.1). The 2010 employment level represents a 73% reduction on the peak level. This is a reversal in the overall trend of growth in employment recorded between 1998 and 2006. There were decreases in employment in both the years 2001 and 2002, but these were relatively small in magnitude. The dramatic decline in employment in this trade has mainly been due to the exceptionally weak position of the new house building sector and the transition from the use of traditional building methods — brick and block build masonry — to modern methods of construction — such as pre-cast concrete panels; cladding systems; timber frame panels; steel frame systems; glazing etc. Timber frame systems have been popular in the construction of houses, while glazing, steel framing and pre-cast concrete panels have predominantly been used in the construction of relatively tall buildings in the commercial sector. Figure B4.1 Total employment of brick and stone-layers and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 18,000 30.0% 16,000 25.0% 14,000 20.0% 12,000 15.0% 10,000 10.0% 8,000 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 0.0% 2000 4,000 1999 5.0% 1998 6,000 number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS B4.2 Historical share of non-Irish nationals in the workforce The share of non-Irish workers in this trade was just over 5% in 2004 and it increased rapidly until 2007, when it peaked at 25%. It declined in the years to 2010, but it has remained relatively high and measured 11% in 2010 (Figure B4.1). B4.3 Historical apprentice intake trends A notable feature of this trade is that the contraction in the recruitment of apprentices during the period 2005-2007 coincided with a significant increase in the 35 share of non-Irish nationals working in the trade. Thus, it may be the case that some employers may have substituted non-Irish workers for apprentices over that period. The forecasting exercise attempts to take this factor into account by assuming that 5% of the workforce of this trade will be composed of non-Irish workers in 2015 (i.e. the forecast of apprentice intake in that year is based solely on the 2015 forecast employment figure for Irish-nationals). Figure B4.2 Annual intake of apprentice brick and stone-layers; ratio of annual intake to total employment, 1998-2010 700 6.0% 600 500 4.0% 400 300 2.0% 200 100 annual intake 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0.0% 1998 0 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B4.4 Supply of unemployed crafts-persons and redundant apprentices The number of brick and stone-layers in employment decreased to 4,500 in 2010 from 16,900 in 2006, representing a dramatic reduction in the numbers employed. It appears that a considerable number of unemployed persons in the trade may have emigrated during that period, as the total number unemployed at the end of the fourth quarter of 2010 was 6,100 (Table B4.1). Importantly, over four-fifths of those unemployed were below 45 years of age. Given the existence of a relatively large pool of young unemployed crafts-workers and redundant apprentices, it is likely that some employers may recruit a smaller number of new apprentices in the trade over the projection period. Table B4.1 Brick and stone-layers — numbers employed in 2006 and 2010 (annual averages — ‘000s); numbers unemployed aged below 45 years and all persons, Q4 2010 (numbers —‘000s) Number employed Change in employment Number unemployed All ages All ages All ages <45 years All ages 2006 2010 2006-2010 Q4 2010 Q4 2010 16,900 4,500 -12,300 5,000 6,100 Source: Analysis by FÁS (SLMRU) based on based on CSO data from the QNHS 36 B4.5 Forecast of employment Employment of brick and stone-layers is expected to recover to just above the 2010 employment level by 2015. It is expected to increase modestly from the year 2013, reaching just under 5,000 by 2015 (Figure B4.3). This trend reflects DKM’s expectation of a modest recovery in residential development, both in the new and repair and maintenance segments of that sector Figure B4.3 Actual (1998-2010) and forecast (2011-2015) employment of brick and stone-layers 17,000 15,000 13,000 11,000 9,000 7,000 5,000 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 3,000 B4.6 Forecast of apprentice intake The forecast of apprentice intake in 2015 under the three different forecast scenarios — the 1998-2010 ratio scenario; the 2007-2010 ratio scenario; and the 2010 ratio scenario — is presented below. The forecasts are illustrated graphically in Figure B4.4 and they are also shown together with the forecasts of employment in 2015 in Table B4.2. The forecast of apprentice intake in 2015 under each respective scenario is based on a different apprentice intake to total employment ratio — namely, the average ratio for the period 1998-2010; the average ratio for the period 2007-2010; and the ratio in 2010. The 1998-2010 ratio scenario The average ratio of apprentice intake to total employment in the period 1998-2010 is 3%. When this ratio is applied to the 2015 adjusted forecast of employment of 4,500 (i.e. the 95% Irish-national employment stock), this results in an apprentice recruitment requirement of 130. The 2007-2010 ratio scenario The ratio of apprentice intake to total employment in the period 2007-2010 is 0.7%. When this ratio is applied to the 2015 adjusted forecast of employment of 4,500, the apprentice recruitment requirement is 30. This projected level of apprentice intake is equivalent to the combined level of annual apprentice intake that prevailed in the years 2009 and 2010. 37 The 2010 ratio scenario The ratio of apprentice intake to total employment in 2010 is 0.2%. This ratio is extremely low, reflecting the severity of the phenomenal collapse in apprentice recruitment. When this ratio is applied to the adjusted 2015 forecast of employment for the trade, the apprentice recruitment requirement is 10. This projected level is equivalent to the 2010 level of apprentice intake. Figure B4.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake for brick and stone-layers under the three forecast scenarios 1998-2010 ratio scenario 2007-2010 ratio scenario 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 800 700 600 500 400 300 200 100 0 2010 ratio scenario Table B4.2 Actual (1998-2010) and forecast (2011-2015) employment & apprentice intake of brick and stone-layers under the three forecast scenarios Employment Number of apprentices Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 8,000 9,400 11,300 10,800 10,000 11,300 13,900 16,700 16,900 15,800 11,100 6,100 4,500 1998-2010 ratio scenario 339 368 441 416 441 549 680 599 474 247 56 20 10 Forecast 2011 2012 2013 2014 2015 4,500 5,200 5,400 5,800 6,200 20 20 30 60 130 38 2007-2010 ratio scenario 339 368 441 416 441 549 680 599 474 247 56 20 10 2010 ratio scenario 339 368 441 416 441 549 680 599 474 247 56 20 10 20 20 20 20 30 20 20 10 10 10 B5. Plumber B5.1 Historical employment trends Employment of plumbers increased significantly between 1998 and 2007, particularly during the years of the construction boom. It increased from 8,700 in 1998 to reach a peak level of 17,000 in 2007 (Figure B5.1). However, this upward trend has reversed since 2007; employment contracted to 10,700 in 2010, reflecting the severity of the contraction in construction activity. Figure B5.1 Total employment of plumbers and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 10.0% 8.0% 6.0% 4.0% 2.0% 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0.0% number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS B5.2 Historical share of non-Irish nationals in the workforce There was a steady increase in the share of non-Irish nationals in the workforce of plumbers between 2004 and 2007 (Figure B5.1). The share in 2010 was just below the share of 7% in 2007, but it is expected to decline over the next few years as employment opportunities remain limited. Given the relatively low representation of non-Irish nationals in workforce of this trade and the anticipated contraction in the share in the short-term, the forecast of employment in 2015 has not been adjusted downwards to take this factor into account. B5.3 Historical apprentice intake trends There was over a two and half fold increase in the apprentice recruitment level over the period 1998-2006, increasing from 589 to 1,501 (the peak level). In the subsequent years to 2010, there was a significant contraction in the recruitment level, reflecting the exceptional rate of deterioration in activity across all segments of the construction sector. It decreased by just over 90% in that period and this compares with a 37% decrease in the employment level. The much stronger pace of contraction in the apprentice recruitment level is reflected in the declining 39 apprentice intake to total employment ratio over the period. The ratio measured 6.1% in 2007 and it decreased to 0.8% in 2010 (Figure B5.2). Figure B5.2 Annual intake of apprentice plumbers; ratio of annual intake to total employment, 1998-2010 12.0% 1600 1400 1200 1000 800 600 400 200 0 10.0% 8.0% 6.0% 4.0% 2.0% annual intake 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0.0% ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B5.4 Supply of unemployed crafts-persons and redundant apprentices The number of plumbers in employment was approximately 10,700 in 2010; this level is almost 5,000 or 30% below the 2006 level. It may be the case that a considerable number of those who became unemployed during that four year period emigrated — as the total number unemployed in the fourth quarter of 2010 was approximately 3,600 (Table B5.1). Moreover, approximately four fifths (i.e. almost 3,000) of the total number unemployed in that quarter were aged under 45 years. As there is a significant number of relatively young unemployed crafts-workers and apprentices in this trade, some employers may recruit a relatively smaller number of new apprentices over the projection period. However, it should be noted that not all of those unemployed may be available to work in trade over the forecast period due to factors such as emigration, illness, etc. Table B5.1 Plumbers — numbers employed in 2006 and 2010 (annual averages — ‘000s); numbers unemployed aged below 45 years and all persons, Q4 2010 (numbers — ‘000s) Number employed All ages 2006 15,500 Change in employment Number unemployed All ages All ages <45 years All ages 2010 2006-2010 Q4 2010 Q4 2010 10,700 -4,800 2,900 3,600 Source: Analysis by FÁS (SLMRU) based on based on CSO data from the QNHS B5.5 Forecast of employment Employment of plumbers is expected to contract further in both the years 2011 and 2012. It is expected to revert to a positive trend in 2013 (measuring 7,600); 40 however, it is not expected to recover to the level which prevailed in 2010 by the end of the projection period (Figure B5.3). Figure B5.3 Actual (1998-2010) and forecast (2011-2015) employment of plumbers 17,000 15,000 13,000 11,000 9,000 7,000 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 5,000 B5.6 Forecast of apprentice intake The forecast of apprentice intake in 2015 under the three different forecast scenarios — the 1998-2010 ratio scenario; the 2007-2010 ratio scenario; and the 2010 ratio scenario — is presented below. The forecasts are illustrated graphically in Figure B5.4 and they are also shown together with the forecasts of employment in 2015 in Table B5.2. The forecast of apprentice intake in 2015 under each respective scenario is based on a different apprentice intake to total employment ratio — namely, the average ratio for the period 1998-2010; the average ratio for the period 2007-2010; and the ratio in 2010. The 1998-2010 ratio scenario The average apprentice intake to total employment ratio of 6.6% for the period 1998-2010 is applied to the 2015 forecast of employment of 8,200 for the trade and this results in an apprentice recruitment requirement of 540. The 2007-2010 ratio scenario The average apprentice intake to total employment ratio of 2.7% for the period 2007-2010 is applied to the 2015 forecast of employment for the trade and this results in an apprentice recruitment requirement of 220. This projected level is almost the same as the combined level of apprentice intake in 2009 and 2010 and only represents 15% of the 2005 peak level of 1,501. The 2010 ratio scenario The apprentice intake to total employment ratio in 2010 of 0.8% is applied to the 2015 forecast of employment for the trade and this results in an apprentice recruitment requirement of 70. This projected level is broadly similar to the apprentice intake level that was experienced in the first eight months of 2011 and only represents 5% of the 2006 peak level of intake. 41 Figure B5.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake for plumbers under the three forecast scenarios 1998-2010 ratio scenario 2007-2010 ratio scenario 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2010 ratio scenario Table B5.2 Actual (1998-2010) and forecast (2011-2015) employment and apprentice intake of plumbers under the three forecast scenarios Employment Number of apprentices Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 8,700 9,000 9,800 10,300 10,200 12,000 12,400 14,400 15,500 17,000 15,800 12,600 10,700 1998-2010 ratio scenario 589 690 826 857 731 938 1,250 1,252 1,501 1,040 451 126 91 Forecast 2011 2012 2013 2014 2015 7,600 7,400 7,600 7,900 8,200 120 120 190 320 540 42 2007-2010 ratio scenario 589 690 826 857 731 938 1,250 1,252 1,501 1,040 451 126 91 2010 ratio scenario 589 690 826 857 731 938 1,250 1,252 1,501 1,040 451 126 91 120 120 140 180 220 120 120 100 80 70 B6. Plasterer B6.1 Historical employment trends Employment of plasterers increased significantly during the boom years of construction activity. The numbers employed increased from 5,500 in 1998 to peak at 14,700 in 2006, reflecting the unprecedented level of new house building put in place. Since reaching its peak level, employment has plummeted, reverting to just below the 1998 level of 5,500 in 2010. The number of jobs losses experienced in the last four years exceeds the number of job gains for the period 1998-2006 (Figure B6.1). The dramatic decline in employment in recent years is due to severe contraction in construction activity, particularly, in new residential construction activity. Figure B6.1 Total employment of plasterers and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 25.0% 14,000 20.0% 12,000 15.0% 10,000 10.0% 8,000 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 0.0% 2000 4,000 1999 5.0% 1998 6,000 number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS B6.2 Historical share of non-Irish nationals in the workforce The share of non-Irish nationals in the workforce of plasterers increased from 3% in 2004 to 19% in 2008. Although, the numbers employed in the trade are relatively low in recent years, the share of non-Irish nationals has remained relatively high and it measured 18% in 2010 (Figure B6.1). It is assumed that some non-Irish nationals (i.e. 5%) will continue to work as plasterers in Ireland over the forecast period and this factor is taken into account in the forecasting exercise. B6.3 Historical apprentice intake trends With the exception of the year 2002, the intake level of apprentice plasterers increased annually in the period 1998-2004, increasing from 168 to 311. After having peaked in 2004, the level declined dramatically in the period thereafter, 43 decreasing to only 12 in 2010. The 2010 level represents a 96% reduction on the 2004 peak level (Figure B6.2). The rapid deterioration in annual intake levels between 2007 and 2010 is more pronounced than the contraction in employment for the trade. Figure B6.2 Annual intake of apprentice plasterers; ratio of annual intake to total employment, 1998-2010 400 4.0% 3.5% 300 3.0% 2.5% 200 2.0% 1.5% 100 1.0% 0.5% annual intake 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0.0% 1998 0 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B6.4 Supply of unemployed crafts-persons and redundant apprentices Between 2006 and 2010, employment of plasterers (including both crafts-workers and apprentices) contracted by 10,100 to 4,600 in 2010. The total number unemployed in the trade was approximately 5,600 in the fourth quarter of 2010 (Table B6.1). Based on the figures, it appears that a considerable number of those unemployed during that four year period may have emigrated. Moreover, over four fifths of those unemployed in the fourth quarter of 2010 were below 45 years of age. As there is a significant number of relatively young unemployed crafts-workers and apprentices in this trade, some employers may recruit a relatively smaller number of new apprentices over the projection period. However, it should be noted that not all of those unemployed may be available to work in trade over the forecast period due to factors such as emigration, illness, etc. Table B6.1 Plasterers — numbers employed in 2006 and 2010 (annual averages — ‘000s); numbers unemployed aged below 45 years and all persons, Q4 2010 (numbers — ‘000s) Number employed Change in employment Number unemployed All ages All ages All ages 2006 2010 2006-2010 Q4 2010 Q4 2010 14,700 4,600 -10,100 4,500 5,600 Source: Analysis by FÁS (SLMRU) based on based on CSO data from the QNHS 44 <45 years All ages B6.5 Forecast of employment Employment of plasterers is expected to continue declining in the first two years of the forecast period and to return to a positive trend in 2013. Employment is expected to reach 5,100 by 2015 (Figure B6.3). Figure B6.3 Actual (1998-2010) and forecast (2011-2015) employment of plasterers 15,000 13,000 11,000 9,000 7,000 5,000 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 3,000 B6.6 Forecast of apprentice intake The forecast of apprentice intake in 2015 under the three different forecast scenarios — the 1998-2010 ratio scenario; the 2007-2010 ratio scenario; and the 2010 ratio scenario — is presented below. The forecasts are illustrated graphically in Figure B6.4 and they are also shown together with the forecasts of employment in 2015 in Table B6.2. The forecast of apprentice intake in 2015 under each respective scenario is based on a different apprentice intake to total employment ratio — namely, the average ratio for the period 1998-2010; the average ratio for the period 2007-2010; and the ratio in 2010. The 1998-2010 ratio scenario The average ratio of apprentice intake to total employment is 1.8% for the period 1998-2010. This ratio is applied to the 2015 forecast of employment adjusted for an assumed 5% share of non-nationals in the workforce of this trade, and this results in an apprentice recruitment requirement of 90. This projected level is broadly equivalent to the average level of apprentice intake which prevailed in the years 2007 and 2008. The 2007-2010 ratio scenario The average ratio of apprentice intake to total employment is 0.5% for the period 2007-2010. This ratio is applied to the 2015 adjusted forecast of employment, and it results in an apprentice recruitment requirement of 20. This projected level of apprentice intake is almost equivalent to the combined level of annual intake in the years 2009 and 2010. 45 The 2010 ratio scenario The ratio of apprentice intake to total employment is 0.3% in 2010. This ratio is applied to the 2015 adjusted forecast of employment (i.e. the 95% Irish national employment stock figure), and it results in an apprentice recruitment requirement of 10, which is broadly equivalent to the level of apprentice recruitment experienced in 2010. Figure B6.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake of plasterers under the three forecast scenarios 400 300 200 100 1998-2010 ratio scenario 2007-2010 ratio scenario 2015F 2014F 2013F 2012F 2010 2011F 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0 2010 ratio scenario Table B6.2 Actual (1998-2010) and forecast (2011-2015) employment and apprentice intake of plasterers under the three forecast scenarios Employment Number of apprentices Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 5,500 6,600 7,800 9,500 9,900 9,300 11,600 12,900 14,700 14,100 12,100 5,400 4,600 1998-2010 ratio scenario 163 175 188 201 186 268 311 278 220 143 57 14 12 Forecast 2011 2012 2013 2014 2015 4,400 4,200 4,400 4,700 5,100 10 10 10 40 90 46 2007-2010 ratio scenario 163 175 188 201 186 268 311 278 220 143 57 14 12 2010 ratio scenario 163 175 188 201 186 268 311 278 220 143 57 14 12 10 10 10 20 20 10 10 10 10 10 B7. Painter and Decorator B7.1 Historical employment trends Employment of painters and decorators remained relatively stable during the period 2000-2004 (ranging from 9,800 to 10,400) and it increased to peak at 13,000 in 2007. Employment has contracted since 2007, returning to just above the level which prevailed in 1998 by the end of 2010 (Figure B7.1). B7.2 Historical share of non-Irish nationals in the workforce The share of non-Irish nationals represented in the workforce of this trade declined from 18% in 2008 to 13% in 2010 (Figure B7.1). Figure B7.1 Total employment of painters and decorators and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 14,000 25.0% 13,000 20.0% 12,000 11,000 15.0% 10,000 10.0% 9,000 8,000 5.0% 7,000 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0.0% 1998 6,000 number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS B7.3 Historical apprentice intake trends The recruitment of apprentices increased steadily in both 1998 and 1999. There was no significant variation recorded in the apprentice intake levels during the seven subsequent years. However, a significant contraction of 45% occurred in 2007 and the intake levels have been declining annually since, decreasing to 8 in 2010 (Figure B7.2). The contraction in apprentice intake has coincided with a significant increase in the employment of non-Irish nationals. Consequently, it is assumed that 5% of the workforce of the trade will be non-Irish workers in 2015 and the forecast of apprentice intake in that year is based only on the Irish national workforce. 47 Figure B7.2 Annual intake of apprentice painters &decorators; ratio of annual intake to total employment, 1998-2010 annual intake 2010 2009 2008 2007 0.0% 2006 0 2005 0.5% 2004 50 2003 1.0% 2002 100 2001 1.5% 2000 150 1999 2.0% 1998 200 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B7.4 Supply of unemployed crafts-persons and redundant apprentices The number of painters and decorators in employment was 7,100 in 2010 compared to 11,900 in 2006 — representing a decline of 4,800 (Table B7.1). It may be the case that a considerable number of those who became unemployed during that period emigrated, as the total number unemployed at the end of the fourth quarter of 2010 was 5,800. Moreover, almost three quarters of those unemployed in the fourth quarter of 2010 were below 45 years of age. As there are a significant number of relatively young unemployed persons (i.e. crafts-workers and apprentices), employers may recruit a relatively smaller number of new apprentices in the trade over the forecast period. However, it should be noted that all of the unemployed will be available to work due to factors such as emigration, illness etc. Table B7.1 Painter and decorators — numbers employed in 2006 and 2010 (annual averages — ‘000s); numbers unemployed aged below 45 years and all persons, Q4 2010 (numbers — ‘000s) Number employed Change in employment Number unemployed All ages All ages All ages <45 years All ages 2006 2010 2006-2010 Q4 2010 Q4 2010 11,900 7,100 -4,800 4,300 5,800 Source: Analysis by FÁS (SLMRU) based on based on CSO data from the QNHS B7.5 Forecast of employment Employment of painters and decorators is expected to contract to 5,000 by the end of 2011 and to broadly remain at that level annually in the period 2012-2015 (Figure B7.3). 48 Figure B7.3 Actual (1998-2010) and forecast (2011-2015) employment of painters & decorators 13,000 11,000 9,000 7,000 5,000 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 3,000 B7.6 Forecast of apprentice intake The forecast of apprentice intake in 2015 under the three different forecast scenarios — the 1998-2010 ratio scenario; the 2007-2010 ratio scenario; and the 2010 ratio scenario — is presented below. The forecasts are illustrated graphically in Figure B7.4 and they are also shown together with the forecasts of employment in 2015 in Table B7.2. The forecast of apprentice intake in 2015 under each respective scenario is based on a different apprentice intake to total employment ratio — namely, the average ratio for the period 1998-2010; the average ratio for the period 2007-2010; and the ratio in 2010. The 1998-2010 ratio scenario The average apprentice intake to total employment ratio of 1.2% for the period 1998-2010 is applied to the adjusted employment forecast (i.e. the Irish-national employment figure) of approximately 5,100 in 2015 and this results in an apprentice recruitment requirement of 60. The 2007-2010 ratio scenario The average apprentice intake to total employment ratio of 0.4% for the period 2007-2010 is applied to the adjusted employment forecast of approximately 5,100 in 2015 and this gives an apprentice recruitment requirement of 20. The 2010 ratio scenario The apprentice intake to total employment ratio of 0.1% in 2010 is applied to the adjusted 2015 forecast of employment and this results in an apprentice recruitment requirement of 10. 49 Figure B7.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake of painters & decorators under the three forecast scenarios 1998-2010 ratio scenario 2007-2010 ratio scenario 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 200 180 160 140 120 100 80 60 40 20 0 2010 ratio scenario Table B7.2 Actual (1998-2010) and forecast (2011-2015) employment and apprentice intake of painters and decorators under the three forecast scenarios Employment Number of apprentices Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 6,900 8,500 10,000 10,100 10,400 10,000 9,800 12,500 11,900 13,000 11,000 8,300 7,100 1998-2010 ratio scenario 120 136 159 148 151 140 157 148 161 113 62 19 8 Forecast 2011 2012 2013 2014 2015 5,000 4,800 4,900 5,100 5,300 20 20 30 40 60 50 2007-2010 ratio scenario 120 136 159 148 151 140 157 148 161 113 62 19 8 2010 ratio scenario 120 136 159 148 151 140 157 148 161 113 62 19 8 20 20 20 20 20 20 20 10 10 10 B8. Construction Plant Fitter B8.1 Historical employment trends Within the official CSO occupational classification, there is no occupation which corresponds to ‘construction plant fitter’. However, there are approximately 1,800 fitters employed in the construction industry and, for the purpose of this forecasting exercise it is assumed that these fitters are working on construction plant related projects. Employment of construction plant fitters remained relatively stable between 1998 and 2002, with over 2,000 persons employed in this occupation (Figure B8.1). Employment declined to below 2,000 in 2003 and increased strongly to peak at 4,200 in 2005, concomitant with the high levels of activity recorded in the civil engineering segment of the construction industry. Since 2007, employment has contracted ― reverting to below the level which prevailed in 1998. B8.2 Historical share of non-Irish nationals in the workforce The share of non-Irish nationals in the workforce of this occupation increased significantly since the enlargement of the European labour market in 2004 ― increasing from just under 4% in 2004 to peak at 30% in 2007. However, the share decreased to 17% in 2010 (Figure B8.1). Figure B8.1 Total employment of construction plant fitters and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0.0% number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS The number of Irish construction plant fitters in employment declined between 2004 and 2007, while at the same time, the share of non-Irish nationals increased, but the apprentice intake figures remained relatively unchanged during this period 51 suggesting that employers may not have substituted non-Irish workers for apprentices in this trade. B8.3 Historical apprentice intake trends The recruitment of apprentices in this trade remained in the range of 80 to 114 during the period 1998-2007 (Figure B8.2). The level has declined dramatically since 2007 while, at the same time, the proportion of non-Irish nationals has remained relatively high. Thus, the more recent period is consistent with the view that some substitution of non-Irish workers for apprentices has been occurring. The analysis attempts to take this factor into account by assuming that 5% of forecast employment for this occupation will be non-Irish in 2015. Figure B8.2 Annual intake of construction plant fitters; ratio of annual intake to total employment, 1998-2010 0 0.0% 1999 annual intake 2010 1.0% 2009 20 2008 2.0% 2007 40 2006 3.0% 2005 60 2004 4.0% 2003 80 2002 5.0% 2001 100 2000 6.0% 1998 120 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B8.4 Supply of unemployed crafts-persons and redundant apprentices Between 2006 and 2010, employment of construction plant fitters contracted by 50%, to 1,800 (Table B8.1). In the fourth quarter of 2010, a relatively small number of persons were unemployed in the trade (i.e. less than 1,000), and most of those were below 45 years of age. Table B8.1 Construction plant fitters — numbers employed in 2006 and 2010 (annual averages — ‘000s); numbers unemployed aged below 45 years and all persons, Q4 2010 (numbers — ‘000s) Number employed Change in employment Number unemployed All ages All ages All ages 2006 2010 2006-2010 Q4 2010 Q4 2010 3,700 1,800 -1,900 * * Source: Analysis by FÁS (SLMRU) based on based on CSO data from the QNHS 52 <45 years All ages B8.5 Forecast of employment Employment of construction plant fitters is expected to increase to 1,700 by 2015, which is broadly similar to the level which prevailed in 2010 (Figure 8.3). Figure B8.3 Actual (1998-2010) and forecast (2011-2015) employment of construction plant fitters 4,500 4,000 3,500 3,000 2,500 2,000 1,500 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1,000 B8.6 Forecast of apprentice intake The forecast of apprentice intake in 2015 under the three different forecast scenarios — the 1998-2010 ratio scenario; the 2007-2010 ratio scenario; and the 2010 ratio scenario — is presented below. The forecasts are illustrated graphically in Figure B8.4 and they are also shown together with the forecasts of employment in 2015 in Table B8.2. The forecast of apprentice intake in 2015 under each respective scenario is based on a different apprentice intake to total employment ratio — namely, the average ratio for the period 1998-2010; the average ratio for the period 2007-2010; and the ratio in 2010. The 1998-2010 ratio scenario The average apprentice intake to total employment ratio of 3.1% for the period 1998-2010 is applied to the 2015 adjusted forecast of employment of 1,600 (i.e. the 95% Irish-national figure) for the trade. This results in an apprentice recruitment requirement of 50. The 2007-2010 ratio scenario The average apprentice intake to total employment ratio of 1.9% for the period 2007-2010 is applied to the 2015 adjusted forecast of employment of 1,600 and this gives an apprentice recruitment requirement of 30. The 2010 ratio scenario The apprentice intake to total employment ratio of 1.7% in 2010 is applied to the adjusted 2015 forecast of employment and this results in an apprentice recruitment requirement of 30. 53 Figure B8.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake of construction plant fitters under the three forecast scenarios 120 100 80 60 40 20 1998-2010 ratio scenario 2007-2010 ratio scenario 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0 2010 ratio scenario Table B8.2 Actual (1998-2010) and forecast (2011-2015) employment & apprentice intake of construction plant fitters under the three forecast scenarios Employment Number of apprentices Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2,200 2,400 2,700 2,300 2,200 1,700 3,700 4,200 3,700 3,800 2,700 2,000 1,800 1998-2010 ratio scenario 92 87 91 114 83 84 102 104 89 93 64 26 30 Forecast 2011 2012 2013 2014 2015 1,500 1,500 1,500 1,600 1,700 30 30 30 40 50 54 2007-2010 ratio scenario 92 87 91 114 83 84 102 104 89 93 64 26 30 2010 ratio scenario 92 87 91 114 83 84 102 104 89 93 64 26 30 30 30 30 30 30 30 30 30 30 30 B9. Motor Mechanic B9.1 Historical employment trends It is very difficult to forecast the apprentice recruitment of motor mechanics since it is influenced by a range of factors. In general, the fact that cars are becoming much more reliable and, consequently, service intervals less frequent, should indicate that the number of motor mechanics required for a given volume of cars is on a downward trend. However, there was a significant increase in the purchase of cars during the period 1998-2008 and this trend seems to have off-set any negative impact which longer service intervals might have on employment. There was an overall positive employment trend for motor mechanics during the period 1998-2007 (Table B9.1). The number employed increased from 11,300 in 1998 to reach a peak of 16,600 in 2007. Since 2007, however, the number employed has contracted by 3,000 to 13,000 in 2010. Figure B9.1 Total employment of motor mechanics and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 17,000 25.0% 15,000 20.0% 13,000 11,000 15.0% 9,000 10.0% 7,000 5,000 5.0% 3,000 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0.0% 1998 1,000 number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS B9.2 Historical share of non-Irish nationals in the workforce A feature of the employment trend for motor mechanics is the significant increase in the recruitment of non-Irish motor mechanics since the enlargement of the European labour market in 2004 (Figure B9.1). The proportion of non-Irish workers increased from 4% in that year to reach a peak of 21% in 2009 and it declined very modestly to 20% in 2010. 55 The surge in the recruitment of non-Irish mechanics, which occurred over the period 2006-2010, initially gave rise to a modest increase in total employment before coinciding with a sharp decline in total employment in 2008, 2009 and 2010. Indeed, the number of Irish motor mechanics declined by 27% during the period 2006-2010 ― equivalent to approximately 4,000 jobs. B9.3 Historical apprentice intake trends The annual level of apprentice intake in this trade has been in the range of 400 to 551 in the period 1998-2008. The intake levels contracted sharply from the year 2007 to 2009 — by 289 from 448 to 159. However, it increased to 191 in 2010. The sharp decline in the number of Irish motor mechanics between 2006 and 2010 may have, in the eyes of some employers, reduced the need to replenish the employment stock through the recruitment of apprentices. However, the modest decline in the proportion of non-Irish nationals working in the trade in 2010 has coincided with an increase in apprentice intake, indicating a reversal of the trend observed in the previous year. Nevertheless, in forecasting the recruitment of apprentices in 2015, it is assumed that 10% of the employment stock of motor mechanics in 2015 will be composed of non-Irish nationals. Figure B9.2 Annual intake into the motor mechanics apprenticeship, ratio of annual intake to total employment stock, 1998-2010 600 4.5% 4.0% 500 3.5% 400 3.0% 2.5% 300 2.0% 200 1.5% 1.0% 100 0.5% annual intake 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0.0% 1998 0 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B9.4 Forecast of employment Employment of motor mechanics is expected to increase by approximately 1,900 from 13,300 in 2011 to 15,200 in 2015 (Table B9.3). 56 Figure B9.3 Actual (1998-2010) and forecast (2011-2015) employment of motor mechanics 17,000 16,000 15,000 14,000 13,000 12,000 11,000 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 10,000 B9.5 Forecast of apprentice intake The 2015 forecast level of apprentice intake is graphically presented in Figure B9.4 and is shown together with the forecast of employment in that year in Table B9.1 The average ratio of apprentice intake to total employment of 2.9% for the period 1998-2010 is applied only to the 2015 Irish-national employment stock of 13,700 to derive the forecast of apprentice intake for motor mechanics in that year. This calculation results in an apprentice recruitment requirement of 400 in 2015. Figure B9.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake of motor mechanics 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 600 550 500 450 400 350 300 250 200 150 100 50 0 Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics; forecasts derived by FÁS, SLMRU This projected figure might appear high in view of the fact that the intake level was only 159 in 2009. However, the year 2009 was exceptional because economic activity was at a very low ebb and indeed many garages went out of business. With the exception of that year, the annual intake level since 1998 has always been above 57 400 and in some years, significantly above that figure. If the expectation that the economy begins to grow strongly from the year 2013, there is no reason why the annual recruitment of apprentices will not gradually revert to 90% of its historical average (allowing for the impact of an estimated 10% of non-Irish nationals on apprentice recruitment), which is equivalent to a figure of 408, which is very similar to the forecast figure. Table B9.1 Actual (1998-2010) and forecast (2011-2015) employment and apprentice intake of motor mechanics Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Employment 11,300 12,100 13,700 13,500 13,200 15,000 14,900 15,800 16,200 16,600 15,600 14,400 13,000 Number of apprentices 433 472 551 493 458 420 404 454 442 448 414 159 191 Forecast 2011 2012 2013 2014 2015 13,300 13,800 14,300 14,700 15,200 230 230 270 330 400 58 B10. Vehicle Body Repairer B10.1 Historical employment trends Employment of vehicle body repairers increased steadily over the period 1998-2001, increasing from 1,600 to 2,800 (Figure B10.1). In the subsequent years to 2008, the level remained in the range of 2,200 to 2,500. However, since 2007, employment initially declined to 2009, before recovering to 2,000 in 2010. Figure B10.1 Total employment of vehicle body repairers and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 2010 2009 0.0% 2008 1,000 2007 5.0% 2006 1,500 2005 10.0% 2004 2,000 2003 15.0% 2002 2,500 2001 20.0% 2000 3,000 1999 25.0% 1998 3,500 number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS B10.2 Historical share of non-Irish nationals in the workforce The proportion of non-Irish nationals working in the trade increased from 4% in 2005 to 15% in 2007 and further increased to 18% in 2009. However, the proportion declined quite sharply in 2010, to 11% (Figure B10.1). B10.3 Historical apprentice intake trends The recruitment of apprentices in the trade increased from 90 in 1998 to reach a peak level of 140 in 2000, before declining to 118 in the following year. The level remained relatively stable during the period 2002-2005. However, there was a significant reduction in the level between 2005 and 2007. This decline may have been influenced by the recruitment of non-Irish vehicle body repairers in the workforce of this trade. Although the share of non-Irish nationals decreased in 2010, it is too early to say if this downward trend will continue into the future. However, for the purpose of forecasting apprentice intake levels, it is assumed that at least 5% of those employed in this occupation in 2015 will be non-Irish nationals. 59 Figure B10.3 Annual intake of apprentice vehicle body repairers; ratio of annual intake to total employment, 1998-2010 160 7.0% 140 6.0% 120 5.0% 100 4.0% 80 3.0% 60 2.0% 40 annual intake 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 0.0% 2000 0 1999 1.0% 1998 20 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B10.4 Forecast of employment Employment of vehicle body repairers is expected to remain at approximately 2,000 annually or just a few hundred above this figure over the period 2011-2015. Figure B10.2 Actual (1998-2010) and forecast (2011-2015) employment of vehicle body repairers 3,000 2,500 2,000 1,500 1,000 500 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0 B10.5 Forecast of apprentice intake The ratio of apprentice intake to total employment was quite volatile over the period 1998-2010. In the last two years of this period, the ratio declined dramatically — from 5% to 1.4%. The average ratio of 4.3% for this period is applied to the adjusted forecast of employment for 2015 and this gives an anticipated apprentice recruitment requirement of 100. 60 Figure B10.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake of vehicle body repairers 140 120 100 80 60 40 20 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0 Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics; forecasts derived by FÁS, SLMRU Table B10.1 Actual (1998-2010) and forecast (2011-2015) employment and apprentice intake of vehicle body repairers Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Employment 1,600 2,000 2,200 2,800 2,200 2,400 2,300 2,300 2,300 2,600 2,200 1,800 2,000 Forecast 2011 2012 2013 2014 2015 2,100 2,200 2,200 2,300 2,400 61 Of which, number of apprentices 90 116 140 118 93 100 102 111 95 69 110 50 28 40 40 50 70 100 B11. Mechanical Automation and Maintenance Fitter B11.1 Historical employment trends There is a distinct apprenticeship for those seeking to become construction plant crafts-workers and, consequently, in general, those working as fitters in the construction industry have not graduated from the mechanical automation and maintenance fitter (MAMF) apprenticeship. Therefore, the numbers employed in construction have been omitted from this analysis. Traditionally, the maintenance fitter trade provided some of the best employment opportunities for apprentices. From 1998 to 2001, there were over 20,000 persons employed in this trade. However, employment contracted in the subsequent years to 2005, declining to approximately 17,000. It recovered to just over 20,000 in 2007 and the level has been in decline since that year, decreasing to approximately 15,200 in 2010 (Figure B11.1). Figure B11.1 Total employment of metal working production and maintenance fitters and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 25000 14.0% 12.0% 20000 10.0% 15000 8.0% 10000 6.0% 4.0% 5000 2.0% 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0.0% 1998 0 number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS B11.2 Historical share of non-Irish nationals in the workforce The proportion of non-Irish nationals represented in the workforce of this trade increased significantly since the enlargement of the European labour market in 2004, increasing from almost 4% in 2004 to peak at almost 13% in 2008. However, the share declined to 7% in 2010, but it is too early to say if this is the beginning of a reversal in the trend. 62 B11.3 Historical apprentice intake trends The annual intake level of apprentices in this trade peaked at 403 in 2000. In the period thereafter to the year 2005, the levels contracted to 166. There was some recovery in the level in 2006 and 2007, but it declined dramatically in the following three years, decreasing to 65 in 2010. There does not appear to be a consistent relationship between the recruitment of new apprentices and the inflow of non-Irish workers into this trade. It is assumed that a negligible number of non-Irish workers will be represented in the workforce of fitters in 2015. Figure B11.2 Annual intake of apprentice mechanical automation and maintenance fitters; ratio of annual intake to total employment, 1998-2010 450 2.5% 400 2.0% 350 300 1.5% 250 200 1.0% 150 100 0.5% 50 annual intake 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0.0% 1998 0 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B11.4 Forecast of employment Employment of fitters is expected to remain broadly similar to the 2010 level each year over the projection period (Figure B11.3). 63 Figure B11.3 Actual (1998-2010) and forecast (2011-2015) employment of fitters 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 24,000 23,000 22,000 21,000 20,000 19,000 18,000 17,000 16,000 15,000 14,000 B11.5 Forecast of apprentice intake The average ratio of apprentice intake to total employment for this trade is 1.1% over the period 1998-2010 inclusive. Applying this ratio to the 2015 forecast of employment of approximately 15,800 gives an apprentice recruitment requirement of 180 (Figure B11.4 and Table B11.1). This figure is broadly similar to the average level of apprentice intake recorded in the years 2005 and 2006. There are a considerable number of fitters employed in both the high-technology and distribution sectors. The Economic and Social Research Institute (ESRI) prediction of an increase in employment in both of these sectors is the reason underpinning the increase in projected apprentice recruitment in this trade. Figure B11.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake of fitters 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 450 400 350 300 250 200 150 100 50 0 Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics; forecasts derived by FÁS, SLMRU 64 Table B11.1 Actual (1998-2010) and forecast (2011-2015) employment and apprentice intake of fitters Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Employment 22,000 22,800 20,400 21,100 18,900 18,500 17,200 17,000 18,100 20,400 18,900 17,000 15,200 Number of apprentices 350 378 403 323 229 211 181 166 171 203 135 70 65 Forecast 2011 2012 2013 2014 2015 15,100 15,100 15,400 15,600 15,800 100 100 120 150 180 65 B12. Toolmaker B12.1 Historical employment trends There was between 1,000 and 1,500 persons employed in the trade of toolmaking annually during the period 2000-2010. B12.2 Historical share of non-Irish nationals in the workforce There are a negligible number of non-Irish nationals working as toolmakers. The trend in the share of non-Irish workers is very volatile over the period 1998-2010. This may be due to sampling error as the data is based on survey data. The share increased from almost 3% in 2006 to 14% in 2009 and it has remained at that proportion in 2010. Figure B12.1 Total employment of toolmakers and share of non-Irish nationals, 1998-2010 (Annual average – ‘000s; %) 2,000 14.0% 1,800 1,600 12.0% 1,400 10.0% 1,200 8.0% 1,000 800 6.0% 600 4.0% 400 2.0% 200 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0.0% 1998 0 number employed share of non-Irish nationals in total emp. stock Source: Analysis by FÁS (SLMRU) based on CSO data from the QNHS B12.3 Historical apprentice intake trends The toolmaking apprenticeship is one of the few apprenticeships that experienced an increase in recruitment in the first eight months of 2011. The level of recruitment in this trade had been in serious decline since the year 2000 ― decreasing from 124 in 2000 to 31 in 2010 (Figure B12.1). However, the level at the end of the first eight months of 2011 is 24, which suggests that the annual recruitment level in 2011 may exceed last year’s figure. The significant increase in apprentice intake recruitment levels last year reflects an upsurge in export activity in the multinational sector. Many companies in this sector are important clients of the toolmaking industry. The recruitment of non-Irish nationals in this trade was particularly active in both 2009 and 2010 and further 66 supports the view that the surge in export activity from the multinational sector triggered a significant in business for toolmaking companies. It is assumed that approximately 5% of the projected employment stock in 2015 will be composed of non-Irish nationals. Figure B12.2 Annual intake of apprentice toolmakers; ratio of annual intake to total employment, 1998-2010 160 10.0% 140 9.0% 8.0% 120 7.0% 100 6.0% 80 5.0% 60 4.0% 3.0% 40 2.0% annual intake 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 0.0% 1999 1.0% 0 1998 20 ratio of new apprentice registrants to total emp. stock Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics B12.4 Forecast of employment Employment of toolmakers is expected to remain broadly similar to the 2010 level each year over the forecast period. Figure B12.3 Actual (1998-2010) and forecast (2011-2015) employment of toolmakers 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 2,500 2,300 2,100 1,900 1,700 1,500 1,300 1,100 900 700 500 B12.4 Forecast of apprentice intake The average ratio of apprentice intake to total employment of 3.9% for the period 1998-2010 is applied to the adjusted 2015 forecast of employment (i.e. the Irishnational employment stock). This calculation gives an apprentice recruitment 67 requirement of 60 in 2015 (Figure B12.3 and Table B12.1). This forecast represents an increase in apprentice intake levels since 2001 and it reflects the assumption underlying the ESRI medium-term forecasts that the economy will experience will recover by 2015, driven partly by the strong export performance of the multinational sector. Figure B12.4 Actual (1998-2010) and forecast (2011-2015) apprentice intake of toolmakers 160 140 120 100 80 60 40 20 2015F 2014F 2013F 2012F 2011F 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 0 Source: Analysis by FÁS (SLMRU) based on FÁS Apprenticeship Statistics; forecasts derived by FÁS, SLMRU Table B12.1 Actual (1998-2010) and forecast (2011-2015) employment and apprentice intake of toolmakers Actual 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Employment 1,800 1,900 1,400 1,400 1,400 1,100 1,500 1,500 1,500 1,100 1,400 1,500 1,400 Number of apprentices 150 110 124 105 43 46 39 34 33 16 21 18 31 Forecast 2011 2012 2013 2014 2015 1,400 1,400 1,500 1,600 1,600 40 40 50 50 60 68