Jobs

Businesses

  • 33,600 direct jobs have been created in the Accommodation and Food Services sector since the VAT reduction in July 2011
  • An additional 15,456 indirect jobs were created elsewhere in the economy since the VAT reduction, giving a total employment increase of 49,056
  • The employer & employee payroll taxes resulting from this increase of 33,600 in direct employment was €160 million
  • The number of people signing on the Live Register at a national level declined by 193,782 between July 2011 and December 2016
  • The Irish Congress of Trade Unions has estimated that for every 10,000 people off the live register and back in employment means a net gain to the exchequer of some €200 million in social welfare payments. Consequently, the increase in direct and indirect employment of 49,056 in the Accommodation & Food Services sector at a national level saved the Exchequer €672 million in social welfare payments.

National Impact of VAT at 9%

Employment in the Accommodation & Food Services Sector Q4 2016

  • In Q4 2016, 148,000 workers were employed directly in the Accommodation & Food Services Sector.
  • The total Gross Annual Wage paid to those workers totaled €3.4 billion.
  • The total Net Annual Wage paid to those workers totaled €3.1billion.
  • The payroll taxes accruing to the Exchequer from this employment totaled €704 million.
  • Indirect employment as a result of the direct employment in the sector is estimated at 68,080.

Change in Employment in the Accommodation & Food Services Sector Q2 2011 – Q4 2016

  • Total employment in the Accommodation & Food Services sector increased by 33,600 between Q2 2011 and Q4 2016.
  • The total Gross Annual Wage paid to those extra workers is €779 million.
  • The total Net Annual Wage paid to those extra workers is €702 million.
  • The payroll taxes accruing to the Exchequer from this extra employment totaled €160 million.
  • The savings in social welfare payments, assuming the extra employment took people off the Live Register, is estimated at €672 million.
  • Indirect employment as a result of the change in direct employment in the sector is estimated at 15,456.
  • The number of people signing on the Live Register declined by 193,782 between July 2011 and December 2016.