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The latest earnings report for Ireland’s biggest engineering companies shows a drop in the number of graduates and a rise in new graduates as companies are grappling with the impact of Brexit and the uncertainty caused by the US presidential election.

In the year to March 31, the number increased by 11,200 new graduates, according to the latest report by the Ireland Institute of Technology (IIIT), while there was a fall in graduates of all other levels.

There were 6,400 fewer graduates of the technical and creative fields.

There are about 15,000 graduates of higher education in Ireland, the IIIT said.

The IIIT also said the number fell by about 4,000 in the year up to March, and by 1,400 in the previous 12 months.

The drop in graduates in engineering and design was particularly pronounced in the sector of advanced manufacturing and services.

The report also shows a decline in the proportion of engineering graduates who have completed their PhD, which is up from 23 per cent in 2016.

It also found a rise of 1,600 engineers in the engineering industry in the past year.

The institute said that while it was a positive sign that the proportion who had completed a PhD had increased to almost 30 per cent, it was clear that there was still much more to do.

“The number of PhD graduates and those with a Masters degree has fallen by a third in the last 10 years.

This is not the result of increased competition or improved research outcomes but because of a decline that is not captured in the average PhD completion rate,” the IIITS said. 

The institute noted that there were also signs of the effects of Brexit on the Irish economy, with the country’s economy contracting by 3.5 per cent and by 3 per cent of the gross domestic product in the first six months of 2018.

“These developments have had a negative impact on the labour market, negatively impacting the competitiveness of our services sector and negatively affecting the economic performance of the Irish state,” the institute said.

“In the same period, the Government has made no significant changes to the way the Irish Government collects its taxes or spends public money, which has resulted in significant losses of public revenue and a reduction in tax revenue.”

The institute also noted that the number and type of people seeking employment has declined and the number who have had to take a pay cut due to Brexit has increased.

It noted that people were not only being offered higher salaries but were also being offered work in the private sector that was less competitive. 

“While we cannot say exactly how many people are losing their jobs due to the Brexit vote, it is clear that this number is at least twice the number that would have been expected if the Brexit referendum had not taken place,” the report said.

Read moreBrexit: What the experts say about the UK’s exit deal, the future of the EU and how it could affect Irish businesses.

The Irish government said it would publish an interim report on the impact on Irish industry by the end of the year. Read more  Irish Independent

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