Brexit slows hiring

Brexit. Are you tired of this word yet? It is all that seems to be on the news, on your local newspaper headlines, and on any form of social media platform you can think of. If it seems to be encroaching on every aspect of your life, that is most likely because it is. 

Although a nuisance, it is not without good reason that this topic is everywhere. However far in the future this EU split may be, there are plenty of precautions being taken here and now that must be taken note of by economists and citizens alike. 

As of late, there have been significant changes in the job market for some particular hiring sectors. An index by IrishJobs.ie notes that in the three months preceding July, there was a 4pc decrease in job postings as a hiring sector wide statistic. 

Some of the largest reductions in possible hirings come from firms that are operating in the accounting, financial services, and pharma sector. These three all have come to the conclusion that their particular category may be more hardly …

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Construction slowing in new home development sector

With competition for loan approval building, home development companies are feeling the heat. This year has proved to be one of the most difficult for possible consumers to obtain loans, largely due to the uncertainty that Brexit brings to the table. Due to the lack of accessibility of funds when attempting to purchase a home, many homes have simply gone unfilled. 

Goodbody Stockbrokers, a  company that specializes in asset management and global investment funds, has taken a clear interest to the changes that are currently happening in the market. This company developed a house building tracker, which in turn showed that from April to June 2019 there was a sharp decline in the output of newly developed housing. 

This is largely due to the fact that without the high availability of loans, many homes simply are not getting sold. In the lower priced areas of the housing market, there is significant competition but any home that is priced at or above €500,000 has been struggling to get off the market. In general, this trend is showing that affordability is becoming …

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Brexit takes more than just UK funds

As we are all well aware of by now, Brexit may affect the Irish economy. Although, one key part of the economy that we tend to overlook when it comes to this massive change is construction, which can and does play a significant role in our day-to-day life decisions.

Construction is much more intricate than just having laborers come in, swing around some tools, and build a structure. Specifics in supply and demand of laborers, resources, time, materials, consumers, money and a multitude of others aspects all play a part in construction outputs.

If Brexit is to occur, especially a no deal Brexit, there are a number of barriers that can arise. These barriers can and will be placed on construction companies, especially those currently working on a project. Some of these barriers include a reduced labor force, slower materials delivery, and possible construction penalties.

What current construction workers point out is that there is a steady decline in the amount of workers each year, and an even steadier decline in quality construction workers. If a hard …

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Yet Another Warning of a Property Bubble: More Perspectives

The Organization for Economic Co-operation and Development has voiced fears that the economy is overheating. This comes soon after the Fiscal Advisory Council heeded similar warnings earlier this week.

The OECD believes that the banking system is still fragile, with bad loans still accounting for 17% of the total. And while the government has already put into place plenty of macro-prudential policies, there is still the possibility that rapidly rising prices lead to another bubble and burst that would disrupt the delicate economy.

Indicative of OEDC’s stance, overall property market prices are up 8.2% this year at the end of April. The boom in construction is already visible on Dublin’s skyline. Irish Times counted 70 construction cranes towering over Dublin from the 7th floor of their office building on June 1st. This number represents a sizable increase compared to the number Irish Times counted in the first few months of this year. The number of cranes is predicted to continue to rise based on the number of large …

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Danger of a new housing bubble?

While the economy is still in recovery, housing supply has been quickly picking up in the past few years. With government construction plans such as the 2013 Forfas Strategy, Capital Investment Plan, and Action Plan for Housing and the Homeless, the housing boom will likely continue if not further accelerate in the years to come.

There are voices of warning: the Fiscal Advisory Council warns that the trends in output and employment in the construction industry may overheat the overall economy, leading to rapidly raising prices and wages. There are also those who believe that output in the construction industry is recovering slowly and still well below what it should be. DKM Economic Consultants recently published a report lamenting a lack of skilled personnel in construction and advocating for greater government funding and availability of apprenticeships.

Acknowledging that the housing supply response is driven by pent up demand, The Fiscal Advisory Council warns that the speed and scale of the response is the real issue. A dramatic increase …

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