Lowering corporation tax will impact skills demand – DEL researchFollow @PwC_NI
The Department of Employment and Learning (DEL) has published research as to how lowering corporation tax in Northern Ireland might impact of skills, labour and innovation.
The report, Preparing for a Lower Corporation Tax Environment, says that cutting the region’s Corporation Tax (CT) rate to 12.5% could double likely employment growth by 2030, creating 58,000 additional new jobs.
However, the report shows that, where other regions have increased economic activity in a low tax environment, they also faced increased market demand for an improved quality and relevance of available skills.
The report highlights the importance of strong skills in Science, Technology, Engineering and Mathematics (STEM); management and leadership; and literacy, numeracy and employability skills as a prerequisite the full benefits of a lower Corporation Tax.
Key report findings are that, under a lower CT regime:
- Increased employment demand would be most pronounced in the software and ICT sector, which would double in size by 2030;
- There would be a 70% increase in STEM professionals by 2030 compared to today;
- A significant increase in higher level skills is likely in computer science, creative arts & design, managerial and professional roles and biological and physical sciences;
- Additional Foreign Direct Investment (FDI) jobs will require strong management, leadership and professional skills;
- Over half of the 58,000 jobs will be created by indigenous firms; and
- A further drive will be required on up-skilling the low skilled to become ‘work ready’. Only 1 in 8 vacancies by 2030 will be availible to those with no qualifications.
The DEL research was conducted by Oxford Economics and is available to download from the Department’s website at www.delni.gov.uk/lowercorporationtax
Email: John Compton
Tel: +44 (0)28 9041 5663