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Auxiliary Indicators

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In addition to the headline scoreboard the EU Commission also compiles a supplementary list of auxiliary indicators. These indicators provide an additional suite of information covering macroeconomic conditions, competitiveness, house prices and social conditions. The 28 auxiliary indicators have no indicative thresholds set and are intended to complement the reading of the headline scoreboard and the understanding of the general macroeconomic situation.

This publication examines 10 of the 28 auxiliary indicators. The first three indicators displayed in graphs below have been proposed to be upgraded to headline indicators next year.

 

Indicator A1 Change in Activity Rate

% change (from 3 years ago)Proposed MIP Threshold
20052.2-0.2
20063.1-0.2
20073.1-0.2
20081.3-0.2
2009-1.3-0.2
2010-3.2-0.2
2011-2.9-0.2
2012-1.4-0.2
20130.4-0.2
20140.6-0.2

Source publication: Quarterly National Household Survey

Get the data: Eurostat database

 

The activity rate is the percentage of the population aged 15-64 years in the labour force as a proportion of the total population of the same age. It has been proposed that this indicator be included as a Headline Indicator next year with a threshold of -0.2 per cent.

 

Supplementary analysis:

IrelandUnited KingdomGermanyNetherlandsGreeceSpain
20052.20.12.10.42.33.4
20063.10.42.80.91.73.1
20073.10.231.90.32.9
20081.30.42.12.40.32.7
2009-1.301.42.30.72
2010-3.2-0.11-0.31.31.7
2011-2.9-0.31.4-1.20.61.2
2012-1.40.40.9-0.70.11.2
20130.4111.2-0.30.8
20140.61.20.40.90.10.3

Get the data: Eurostat database

 

Ireland’s activity rate grew as a three year percentage change from 2003 to 2008, as did many comparable European countries. However, from 2009 to 2012 onwards it declined sharply, a pattern not replicated in any other country concerned.

15 - 24 years25 - 34 years35 - 44 years45 - 54 years55- 64 yearsTotal
20056.966.77541.87541.1535.625192.325
200624.8593.47546.8546.22536.975248.375
200740.475103.17553.74438.25279.6
200816.07573.2549.739.12532.125210.275
2009-43.07526.22538.1531.121.52573.925
2010-106.725-17.520.67522.72516.8-64.025
2011-114.1-37.92517.215.312.7-106.825
2012-87.275-46.42523.37517.77513.675-78.875
2013-53.325-55.17532.22522.8523.225-30.2
2014-43.8-64.12533.72526.4526.55-21.2
Table 10 Breakdown of Activity Rate (Change in thousands over 3 years)

The increases in the activity rate from 2005 to 2008 related in large part to people aged 25 to 34 years of age joining the labour force. The decline in the activity rate from 2010 onwards was due to people aged 15 to 34 leaving the labour force.

IrelandUnited KingdomGermanyNetherlandsGreeceEU (28 countries)
200570.875.473.876.966.469.2392857142857
200671.975.774.977.466.769.725
200772.675.575.678.566.570.1678571428571
200872.175.875.979.366.770.5142857142857
200970.675.776.379.767.470.5178571428572
201069.475.476.678.267.870.5571428571429
201169.275.577.378.167.370.5928571428571
201269.276.177.27967.571.1285714285714
201369.876.477.679.467.571.4964285714286
201469.876.777.77967.472.025

Get the data: Eurostat database

 

Compared to the overall EU rate and three of the country’s largest European trading partners, Ireland has consistently had a relatively low activity rate.

  

Indicator A2 Change in the Long Term Unemployment Rate

% change (from 3 years previously)Proposed MIP Threshold
20056.4150320.5
2006-4.990250.5
2007-13.94550.5
2008-18.59330.5
2009-8.486380.5
201063.764450.5
2011121.78260.5
2012113.62480.5
201323.301180.5
2014-0.852120.5

Source publication: Quarterly National Household Survey

Get the data: Eurostat database

 

This is another auxiliary indicator that is proposed to be added to the list of headline indicators. The long term unemployment rate expresses the number of people aged 15-74 unemployed for over one year as a percentage of the active population of the same age. The proposed MIP threshold is a 0.5 percent increase compared to three years previously. After falls in the long term unemployment rate (measured as a three year percentage change) from 2006 to 2009, Ireland’s long term unemployment rate increased from 2010 to 2013 at rates far above the proposed 0.5 percent threshold. Long term unemployment as a three year percentage change has declined in 2014.

 

Supplementary analysis:

15 - 24 years25 - 44 years45 years and over15 years and over
20050.5752.4250.953.925
20060.70.3250.651.675
20070.0250.850.0250.875
20082.653.92.28.8
200912.1524.07510.72546.95
201023.3563.22529.7116.3
201123.0586.62538.05147.725
201213.47565.3537.275116.15
2013-7.32512.12516.721.525
2014-13.975-31.551.2-44.4
Table 11 Long Term Unemployment in Thousands (change over 3 years)

Separating out the figures, it is clear that the bulk of those who became long term unemployed from 2009 to 2012, measured as a three year change in absolute values, were aged between 25 and 44 years of age. The decline in the numbers unemployed in 2014 were also mostly made up of people in this category.

 

IrelandUnited KingdomGermanyNetherlandsGreeceSpain
20051.515.92.45.22.2
20061.41.25.72.24.91.8
20071.41.34.81.64.21.7
20081.71.43.91.33.72
20093.51.93.51.13.94.3
20106.82.53.31.45.77.3
20118.72.72.81.78.88.9
20129.12.72.4214.511
20137.92.72.32.618.513
20146.72.22.2319.512.9

Get the data: Eurostat database

 

Ireland’s long term unemployment rate, measured in levels, was lower than the European average until 2009 when it rose above it and the rates of three major trading partners. The long term unemployment rate peaked in 2012 at 9.1 per cent, diverging with trends in Greece and Spain. Ireland’s long term unemployment rate in 2014 stood at 6.7 percent.

Long Term Unemployment Rate in 2014
Greece19.5
Spain12.9
Croatia10.1
Slovakia9.3
Portugal8.4
Italy7.8
Cyprus7.7
Bulgaria6.9
Ireland6.7
Euro area (19 countries)6.1
Slovenia5.3
EU (28 countries)5.1
Lithuania4.8
Latvia4.7
France4.4
Belgium4.3
Poland3.8
Hungary3.7
Estonia3.3
Netherlands3
Romania2.8
Czech Republic2.7
Malta2.7
Germany2.2
United Kingdom2.2
Finland1.9
Denmark1.7
Luxembourg1.6
Austria1.5
Sweden1.5

In 2014 Ireland’s long term unemployment rate stood at 6.7 percent - just above the overall EU rate.

 

Indicator A3 Change in Youth Unemployment

% change (from 3 years previously)MIP Threshold
20052.3025042
2006-0.496122
20073.5623382
200853.950422
2009177.26042
2010205.3442
2011118.33432
201226.337082
2013-3.176772
2014-17.67842

Source publication: Quarterly National Household Survey

Get the data: Eurostat database

 

Youth unemployment is a third auxiliary indicator that has been proposed to be added to the headline indicators next year. The proposed MIP threshold is a two percent change over three years. Ireland’s youth unemployment increased from 2008 to 2012, peaking with a 205 percent increase in 2010.

 

Supplementary analysis:

15 - 1920 - 25Total
2005-0.92.21.4
20060.51.52
20071.23.54.7
20084.313.517.7
20098.335.844.1
20106.533.139.6
20113.71922.6
2012-1.2-5.4-6.6
2013-2.5-14-16.5
2014-4.4-18.5-22.8

Get the data: DataBank QNQ24

 

Breaking down the change in youth unemployment by age, most of the change is driven by those aged from 20 to 25. The trend in this chart is different to the one above due to the use of absolute values rather than the unemployment rate. 

IrelandUnited KingdomGermanyNetherlandsGreeceSpain
20058.712.815.411.825.819.6
20068.713.913.6102517.9
20079.114.311.89.422.718.1
200813.31510.48.621.924.5
20092419.111.110.225.737.7
201027.619.99.811.13341.5
201129.121.38.51044.746.2
201230.421.2811.755.352.9
201326.820.77.813.258.355.5
201423.916.97.712.752.453.2

Get the data: Eurostat database

 

Compared to three of our major export partners, Ireland’s unemployment rate has been relatively high since 2009.

Youth Unemployment in 2014
Germany7.7
Austria10.3
Malta11.8
Denmark12.6
Netherlands12.7
Estonia15
Czech Republic15.9
United Kingdom16.9
Lithuania19.3
Latvia19.6
Slovenia20.2
Hungary20.4
Finland20.5
Luxembourg22
Sweden22.9
Belgium23.2
Bulgaria23.8
Ireland23.9
Poland23.9
Romania24
France24.2
Slovakia29.7
Portugal34.7
Cyprus36
Italy42.7
Croatia45.5
Greece52.4
Spain53.2

Get the data: Eurostat database

 

Ireland’s youth unemployment rate compared to its EU neighbours in 2014 is shown in the chart above.

 

 Indicator A4 Real GDP Growth

IrelandUnited KingdomGermanyNetherlandsGreeceLuxembourg
20055.72.80.72.20.93.2
20065.533.73.55.85.1
20074.92.63.33.73.58.4
2008-2.6-0.31.11.7-0.4-0.8
2009-6.4-4.3-5.6-3.8-4.4-5.4
2010-0.31.94.11.4-5.45.7
20112.81.63.71.7-8.92.6
2012-0.30.70.4-1.1-6.6-0.7
20130.21.70.3-0.5-3.94.4
20144.831.610.85.6

Source Publication: National Income and Expenditure Annual Results

Get the data: Eurostat database

 

Ireland’s GDP growth rates were 4.9 percent and above from 2005 to 2007. From 2008 to 2010 and again in 2012, the country experienced negative GDP growth, returning to positive growth in 2013 and 2014. The growth figure in 2011 is due to multinational refinancing. Compared to four of our main trading partners, Ireland’s positive growth rates have tended to be more positive and its negative rates are more negative.

 

Supplementary analysis:

GDP Growth in 2014
Cyprus-2.3
Croatia-0.4
Italy-0.4
Finland-0.4
France0.2
Austria0.4
Euro area (19 countries)0.8
Greece0.8
Portugal0.9
Netherlands1
Belgium1.1
Denmark1.1
EU (28 countries)1.3
Spain1.4
Germany1.6
Bulgaria1.7
Czech Republic2
Estonia2.1
Sweden2.3
Latvia2.4
Slovakia2.4
Slovenia2.6
Romania2.8
Lithuania2.9
United Kingdom3
Poland3.4
Malta3.5
Hungary3.6
Ireland4.8
Luxembourg5.6

Get the data: Eurostat database

 

This graph compares GDP growth rates between countries. After Luxembourg, Ireland’s 2014 GDP growth rate was the highest in the EU.

Agriculture, forestry and fishingIndustry (not including building and construction)Building and constructionDistribution and transportSoftware and communicationsOther services, Public administration and defence and Taxes less SubsidiesGDP
2005-12208688259883228809863
2006534199543415061250496910446
2007-13-717913453160539089756
2008-211-2606-566-11861414330-4017
200986-1573-2531-27965520-10248
2010272019-1769-2261601-956684
20112807-711-24043713914456
2012-107-980-257-14426315267
2013-316-21013844123064-8732538
201469426373371486102227959330

Source Publication: National Income and Expenditure Annual Results

Get the data: StatBank N1404

 

Many sectors, such as industry, have tended to expand and contract in line with positive and negative overall growth. However, some have not. Building and construction continually fell in size from 2008 to 2012, with very little increase in 2013 and 2014. On the other hand, the software and communications sector has continually grown during the whole period1.

 

Indicator A5 Net Lending/Borrowing (as % of GDP)

IrelandUnited KingdomGermanyNetherlands
2005-2.76918-1.34.56.2
2006-3.54742-2.35.67.7
2007-5.45079-2.76.74.3
2008-5.63539-3.75.64
2009-3.02068-2.75.75.9
20100.622905-2.55.76.9
20111.012993-1.66.29.2
20121.6-3.76.99.5
20134.4-4.46.511.2
20143.8-5.97.710.8

Source Publication: Annual Institutional Sector Accounts Non-Financial and Financial

Get the data: Eurostat database

  

Net lending/borrowing of a country corresponds to the sum of total current and capital accounts’ balances in the balance of payments. It represents the net resources that the total economy makes available to the rest of the world (if it is positive) or receives from the rest of the world (if it is negative). Ireland has experienced falls in net lending/borrowing between 2005 and 2009, although since then it has increased.

 

Supplementary analysis:

Current accountCapital accountTotal
2005-3.301603736954190.200025885702856-3.10157785125134
2006-4.927456292619090.161688919171763-4.76576737344733
2007-6.068894820709040.0583596374597826-6.01053518324926
2008-5.778284909915910.0634507616757399-5.71483414824017
2009-4.137353038387080.00826290193115822-4.12909013645592
2010-0.758318939316430.054767478950631-0.703551460365799
2011-1.154995975623780.134529147982063-1.02046682764172
2012-1.537361663187390.0491864222597157-1.48817524092768
20133.096161562123850.05795550800231823.15411707012616
20143.614464204479330.0714111909270763.68587539540641

Get the data: StatBank BPQ15

 

Most of net lending/borrowing is made up of the current account, which is why it is so similar to the current account, a headline indicator.

 

Indicator A6 Residential Construction (% of GDP)

IrelandUnited KingdomNetherlandsGermanyGreeceSpain
200513.13.965911.5
200613.53.76.25.210.112.1
200711.13.76.35.110.811.7
20088.23.66.258.110.4
20094.73.15.65.16.58.1
201033.24.75.256.9
20112.33.34.25.64.55.7
20121.83.23.55.835
20131.93.435.82.24.3
20142.23.73.1614.1

Source publication: National Income & Expenditure Annual Results

Get the data: Eurostat database

 

This measure refers to the percentage of GDP spent on construction of housing2. Residential construction in Ireland fell even more sharply than Greece and Spain until its recovery in 2013. However, it has still remained very low relative to its peak and to some of its major trading partners.

 

Supplementary analysis:

Residential Construction as % of GDP in 2013
Greece1
Bulgaria1.6
Hungary1.6
Ireland2.2
Slovenia2.2
Latvia2.3
Portugal2.3
Poland2.4
Lithuania2.5
Slovakia2.6
Malta2.7
Netherlands3.1
Czech Republic3.2
Estonia3.2
Cyprus3.3
Luxembourg3.4
United Kingdom3.8
Denmark4
Sweden4.1
Austria4.3
Spain4.4
Italy4.7
Finland5.6
Belgium5.9
Germany5.9
France5.9

Ireland had the third lowest share of residential construction in Europe as a percentage of GDP in 2014.

 

Indicator A7 People at Risk of Poverty or Social Exclusion (% of Population)

IrelandUnited KingdomGermanyNetherlandsEuro area (18 countries)
20052524.818.416.721.7
200623.323.720.21622
200723.122.620.615.721.8
200823.723.220.114.921.7
200925.7222015.121.5
201027.323.219.715.121.8
201129.422.719.915.722.9
20123024.119.61523.2
201329.524.820.315.923.1

Source Publication: Survey on Income and Living Conditions (SILC)

Get the data: Eurostat database

 

Ireland has had a higher than average risk of poverty or social exclusion compared to the overall euro area rate and three of its major European trading partners. This rate increased between 2008 and 2012. It is important to note that this is a relative measure. Data for 2014 were not available at the time of publication.

 

Indicator A8 At Risk of Poverty Rate after Social Transfer (% of Population)

IrelandUnited KingdomGermanyNetherlandsEuro area (18 countries)
200519.71912.210.715.3
200618.51912.59.715.6
200717.218.615.210.216.2
200815.518.715.210.516.1
20091517.315.511.116.1
201015.217.115.610.216.2
201115.216.215.81116.7
201215.71616.110.116.8
201314.115.916.110.416.6

Source Publication: Survey on Income and Living Conditions (SILC)

Get the data: Eurostat database

 

In contrast to the previous measure, Ireland has had a relatively low at risk of poverty rate once social transfers are taken into account compared to some of its major trading partners and the euro area countries3.

 

Supplementary analysis:

At risk of poverty rate after social transfer accross the EU in 2013 (% of population)
Czech Republic8.6
Netherlands10.4
Finland11.8
Denmark12.3
Slovakia12.8
France13.7
Ireland14.1
Hungary14.3
Austria14.4
Slovenia14.5
Sweden14.6
Belgium15
Cyprus15.3
Malta15.7
Luxembourg15.9
United Kingdom15.9
Germany16.1
Poland17.3
Estonia18.6
Portugal18.7
Italy19.1
Latvia19.4
Croatia19.5
Spain20.4
Lithuania20.6
Bulgaria21
Romania22.4
Greece23.1

Get the data: Eurostat database

 

Ireland had the seventh lowest poverty rates after social transfer in the EU in 2013.

  

Indicator A9 Severely Materially Deprived People (% of Population)

IrelandUnited KingdomGermanyNetherlandsGreece
20055.15.34.62.512.8
20064.84.55.12.311.5
20074.54.24.81.711.5
20085.54.55.51.511.2
20096.13.35.41.411
20105.74.84.52.211.6
20117.85.15.32.515.2
20129.87.84.92.319.5
20139.98.35.42.520.3

Source Publication: Survey on Income and Living Conditions (SILC)

Get the data: Eurostat database

 

Compared to its major trading partners, Ireland has a large number of severely materially deprived people. Severe material deprivation is an absolute measure of poverty, where people have living conditions severely constrained by a lack of resources.

 

Supplementary analysis:

Severely materially deprived people accross the EU in 2013 (% of total population)
Sweden1.4
Luxembourg1.8
Netherlands2.5
Finland2.5
Denmark3.8
Austria4.2
Belgium5.1
France5.1
Germany5.4
Spain6.2
Czech Republic6.6
Slovenia6.7
Estonia7.6
United Kingdom8.3
Malta9.5
Ireland9.9
Slovakia10.2
Portugal10.9
Poland11.9
Italy12.4
Croatia14.7
Lithuania16
Cyprus16.1
Greece20.3
Latvia24
Hungary26.8
Romania28.5
Bulgaria43

Get the data: Eurostat database

 

As the sixteenth least materially deprived country in the EU, Ireland fell below the EU average on this indicator in 2013.

 

Indicator A10 People Living in Households with Very Low Work Intensity (% of Total Population Under 60)

IrelandUnited KingdomGermanyNetherlandsGreeceSpain
200514.712.9129.87.66.9
200612.91213.610.98.16.4
200714.310.411.59.78.16.8
200813.710.411.78.27.56.6
20092012.710.98.56.67.6
201022.913.211.28.47.610.8
201124.211.511.28.91213.4
201223.4139.98.914.214.3
201323.913.29.99.318.215.7

Source Publication: Survey on Income and Living Conditions (SILC)

Get the data: Eurostat database

 

Ireland has tended to have a higher rate of people living in households with very low work intensity than three of its major trading partners since 20054.

People living in households with very low work intensity accross the EU in 2013 (% of total population)
Romania6.4
Luxembourg6.6
Czech Republic6.9
Sweden7.1
Poland7.2
Slovakia7.6
Austria7.8
France7.9
Cyprus7.9
Slovenia8
Estonia8.4
Malta9
Finland9
Netherlands9.3
Germany9.9
Latvia10
Italy11
Lithuania11
Portugal12.2
Hungary12.6
Denmark12.9
Bulgaria13
United Kingdom13.2
Belgium14
Croatia14.8
Spain15.7
Greece18.2
Ireland23.9

Get the data: Eurostat database

 

Ireland had the largest rate of people living in very low work intensity households in 2013 compared to other EU countries.

Footnotes:

1Due to individual chain linkages these values do not add up exactly to total GDP growth rates. Values for components are at factor cost. Adding taxes less subsidies provides market costs.

2Residential Construction tracks the actual construction (not sales) of housing and is part of gross fixed capital formation. Gross fixed capital formation consists of resident producers' acquisitions, less disposals, of fixed assets during a given period plus certain additions to the value of non-produced assets realised by the productive activity of producer or institutional units.

3This indicator measures persons with an equivalised disposable income below the risk-of-poverty threshold. This is set at 60 percent of the national median equivalised disposable income (after social transfers) as a percent of total population.

4People living in households with very low work intensity are people aged 0-59 living in households where the adults (aged 18-59) worked less than 20 percent of their total work potential during the past year. Students are excluded.

 

 

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