7 CHAPTER 1 TRENDS IN OUTPUT, EmPLOYmENT AND PRODUCTIVITY IN IRELAND,

AbstRAct This chapter reviews trends in real output, employment and labour productivity in Ireland between 995 and 005. The chapter concludes that productivity growth appears to have ceased, and may well turn negative, at least for a time. The analysis indicates that structural change in the economy has been the significant influence in reducing overall productivity growth, even though output per worker in some sectors has also made a contribution. With regards to structures, the rapid decrease in the relative importance of the manufacturing sector has been a major causative factor. The nature of these influences would suggest that any significant resumption of productivity growth is unlikely in the short-term unless substantial employment increases occur in high value added sectors. The author would like to record his appreciation of the assistance provided by CSO staff, particularly Mr. Bill Keating, Mr. Michael Keating and Mr. Ciarán Counihan, in providing special tabulations from the National Accounts database. Th