Situations vacant survey shows sharp downturn

Job vacancies have fallen dramatically, reflecting a sharp slowdown in the economy, according to a new survey.

The survey showed a slightly higher vacancy rate of 4 per cent in the public sector, compared to 3 per cent in private business. But in general the areas with the highest vacancies in the public sector were not those which will receive the biggest pay increases under the benchmarking process.

The report, compiled for the Expert Group on Future Skills Needs, shows 22 per cent of private sector firms reported vacancies in 2001-02, compared to 31 per cent in the previous survey two years earlier. Reported private sector vacancies fell from 77,600 in the 1999-2000 survey to about 40,000 in 2001-02, a fall in the vacancy rate from 6 per cent of total labour requirements to 3 per cent.

The survey , undertaken by the Economic and Social Research Institute (ESRI) and also sponsored by Forfás and Fás, was conducted in December 2001 and early 2002, after the peak of the jobs boom. The expert group advises the Government on skills issues.

In the public sector, it showed the overall vacancy rate at 4 per cent, with some 12,000 vacancies, of which some 5,500 were in the health service. The highest vacancy rate - 10 per cent - was in the Garda/Defence sector , followed by the health service at 6 per cent.

Overall the survey shows most vacancies in the private sector are in the intermediate and lower skills levels, while most vacancies in the public sector are in the intermediate and higher skills levels.

In the private sector, the highest vacancy rate was in construction (6 per cent), while manufacturing had a low rate of 2 per cent, indicating little difficulty in recruiting staff. At occupational level, some of the highest vacancy rates were for general operatives and science and engineering technicians in the private sector and computer technical staff, engineering and other professionals and science technicians in the public sector.

The high rate of vacancies in science and engineering-related disciplines is likely to reinforce concerns that not enough students are taking these subjects. In the private sector, science- related jobs were one of the few areas where vacancy rates had not fallen from the previous survey.

The survey indicated that the public sector was finding it somewhat more difficult to fill vacancies and retain staff. Some 43 per cent of public sector organisations surveyed reported difficulties in filling vacancies, compared to 18 per cent in private industry. Meanwhile, 21 per cent of public sector organisations had difficulty retaining staff, compared to 12 per cent in the private sector.

Recruiting and retaining staff were issues which the Public Sector Benchmarking Body said it considered in deciding what increases to recommend to public sector workers in its report late June. Many areas identified as having higher vacancies - such as Garda, engineering professionals and technicians generally received increases below the average of 8.9 per cent.

But many in the health sector will receive increases above the average. Some areas where vacancies were lowest - such as education and much of the civil service - are to receive increases at or above the average.

The body did not say what weight it put on recruitment issues in its overall decision making process.

The latest report also shows continued recruitment of overseas employees in 2001-02. Some 24,300 were recruited in the 12 months leading up to the latest survey, of which 35 per cent came from the EU.