16TH JANUARY, 2020

Which Sectors Grew In Ireland Last Year?

With a new year in full swing, it’s a good time to look back at the one just gone and review the country’s economic successes. The good news is that Ireland’s rate of unemployment is now the lowest it’s been since early 2008, and salaries are increasing to attract quality talent. Wages have in fact gone up by 3.9% on average across the market, and entry-level salaries in Dublin have now topped €30K.

Throughout 2020 it looks to be a candidate’s market, and there’s a high demand for niche skills, in particular in the areas of Technology & IT, Pharmaceuticals, Finance and Accounting.

What defines a “Growth Industry”?

A growth industry is a particular sector in the economy that is growing at a higher than average rate in comparison to other sectors. They are typically new or pioneer industries which didn’t exist in years gone by. Such growth will have been due to more demand for the products and services that companies in the field provide.

What characteristics do growth industries tend to have?

Growth industries tend to share common characteristics, typically an influx of investments and fast-growing sales figures. Such companies may be heavily discussed in the media too. Growth industries are often made up of relatively risky or volatile stocks as investors tend to risk more in order to potentially achieve a far higher return.

Here we look at the top growth industries across Ireland from 2019.

1. Pharmaceuticals

The pharmaceutical industry in Ireland is gaining pace and a large number of jobs became available in 2019. Over recent months, there have been plenty of high-profile announcements for new entrants into the biotech and pharma industries in Ireland, with over 2000 new jobs across the country in total with more expected. Particular demand has been for professionals in Quality Assurance, and the salaries have certainly reflected this.

2. Insurance

Insurance is another industry that’s seen massive growth in Ireland over the course of 2019, and 2020 is set to continue this. Ireland’s ambition to be a centre for insurance excellence has been enhanced by the EU’s Insurance Framework Directives. It has allowed Irish insurance companies to undergo business activities across all EU member states by selling passport rights or establishing branches.

Key areas showing the highest number of in-demand positions for professionals include Reinsurance, Actuary and Claims, Compliance and Brokerage.

3. Accountancy & Finance

2019 saw another year of Brexit uncertainty, resulting in a number of financial institutions relocating to Dublin. Additionally, many companies in this sector are finding workers with the exact skillset required increasingly hard to come by. As a result, many have looked abroad to accelerate their hiring process, having boosted salaries and added extra benefits to attract the best talent.

Some of the most high-demand financial sector jobs in Ireland for 2019 include Regulatory Reporting Accountant, Financial Analyst, Accounts Payable and Payroll Specialist. Candidates that speak a second or even third language are the most prized recruits of all.

4. Digital Marketing

CRM, content marketing and e-commerce were the biggest players in this area in 2019. New digital SMEs, small start-ups and established multinationals are all trying to build their own competitive advantage. No matter what their size, just about all of them need in-house digital marketing expertise. The larger organisations particularly are also willing to pay big bucks to not only attract the highest skilled candidates but to retain them too.

5. Language Jobs

Right across the Irish Republic, the demand for skilled personnel with language skills is massive. Such abilities are incredibly sought-after across all sectors, particularly in finance, e-commerce, IT, digital marketing and sales. In terms of languages specifically, the most in-demand ones (besides English) are French, Russian, German, Nordic and Dutch.

Ireland-based international companies are investing in high profile recruitment campaigns for attracting professionals with the right language skills. It’s now common to offer some excellent salaries and competitive benefits to anyone in this category.

6. Technology

A huge range of technology companies have now made Dublin their home, including DXT Technology and First Data to name just two.

The technology sector in Ireland has always done exceptionally well and continues to do so. The demand for the best technology talent can become fiercely competitive, with Irish companies increasingly looking overseas for the perfect candidates they desire. This has given rise to some phenomenal salaries, both permanent and contract, plus an increase in flexible working arrangements.

Some of the most in-demand jobs for 2019 include developers and software engineers (Java software engineers with React skills are particularly highly prized), agile coaches, PMO, scrum masters, data analytics professionals and product owners, plus UI developers and UX/UI designers.

How can R&D Tax Credits help growing Irish companies?

The government has long encouraged innovation and growth is it’s the mainstay of a strong economy. The R&D Tax Credits scheme was launched in the early 2000s to help companies meet the costs involved. It’s administered by the Revenue and eligible R&D expenditure can mean a 25% tax credit for use against Corporation Tax, further to the 12.5% already offered.

This means that organisations undertaking relevant R&D projects can receive a refund from the Revenue of €37.50 for every €100 worth of R&D money spent. In effect, R&D tax relief will reduce the real-terms cost of research and development by up to 37.5%.

Interested? You can find out more on our parent company's R&D Tax Credits page.

Find out more by talking to the experts at Tax Cloud

When it comes to R&D Tax Credit applications, it’s vital that your claim is maximised, plus completely accurate to avoid a Revenue investigation. This is where we come in.

Developed by our highly-skilled team of accountants, consultants and specialists at Myriad Associates, the Tax Cloud portal can help Irish businesses and accountants make a succesful claim.

If you wish to ask a question or discuss anything to do with R&D Tax Credits in Ireland, speak to us today on +353 1 556 2001 or use our contact page.

Barrie Dowsett, ACMA, GCMA
Author Barrie Dowsett, ACMA, GCMA CEO, Tax Cloud
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