how will the recession affect you personally ?

Bubbly Scot said:

My hubby is an IT Contractor, he says daily rates are down a bit, less contracts out there but the credit crunch will ultimately lead to an explosion in that sector. We lived through a similar thing in the UK a few years ago. He reckons we just need to ride it out.

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The credit crunch will lead to an explosion in that area?

I don't understand?
I would have thought the opposite given that businesses cannot borrow money as easily to expand.

Unless i'm missing something here?

qwertyuiop said:

The credit crunch will lead to an explosion in that area?

I don't understand?
I would have thought the opposite given that businesses cannot borrow money as easily to expand.

Unless i'm missing something here?

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IT systems replace people in a downturn. It's up to IT to make things more efficient. So in general, IT spend goes up in a downturn.

Couple that with the dramatic reduction in IT graduates we have here in Ireland since the .com collapse and you end up with more IT work, and less people to do it.

I guess cutbacks in public spending could affect my work somewhat - but if we can adapt and ride that out and expand elsewhere, I don't see there being a big problem. We have survived curbs on public spending before.

In my private life I don't envisage much changing. Looking at cars at the moment, planning home improvements, holidays etc.

1. I'm hoping to get my house extension priced reasonably now there is a downturn.
2. I am afraid that the tenants in my rental property will get laid off and give up the lease.
3. My employer, public sector, is cutting to the bone so although I am secure, we will be expected to cut back on expenses etc.

4. Put off changing the (2nd) car due to VRT changes and 3 above. May now drive this one into ground or until one of kids old enough to use it.

5. Most importantly, with kids approaching university and trying to get into the workforce, I worry that they will not have jobs when they qualify.

6. On the plus side: see my first point, interest rates are rising so savings are more rewarding, mortgage is low etc.

Unless we lose our jobs which is unlikely I don't see much impact personally except for rising prices.

annR said:

Unless we lose our jobs which is unlikely I don't see much impact personally except for rising prices.

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But hopefully not rising taxes.

Slim said:

1. I'm hoping to get my house extension priced reasonably now there is a downturn.
2. I am afraid that the tenants in my rental property will get laid off and give up the lease.
3. My employer, public sector, is cutting to the bone so although I am secure, we will be expected to cut back on expenses etc.

4. Put off changing the (2nd) car due to VRT changes and 3 above. May now drive this one into ground or until one of kids old enough to use it.

5. Most importantly, with kids approaching university and trying to get into the workforce, I worry that they will not have jobs when they qualify.

6. On the plus side: see my first point, interest rates are rising so savings are more rewarding, mortgage is low etc.

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what do u mean when you say the public sector is cutting to the bone? no one is geting laid off

jimbob1234 said:

what do u mean when you say the public sector is cutting to the bone? no one is geting laid off

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I think he means 'spending' - now that the well is dry they aren't firing around money like they have been for the last while.

We do a lot of print work for the HSE and public bodies. All that has come to a sudden halt.

I don't think it will affect me at all.

qwertyuiop: could you stop spelling "the" incorrectly on purpose? It makes you posts very irritating to read.

Flax said:

I don't think it will affect me at all.

qwertyuiop: could you stop spelling "the" incorrectly on purpose? It makes you posts very irritating to read.

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Apologies flax - although you don't really think i am doing it on purpose do you?

Well you consistently only spell "the" incorrectly, so I guessed you weren't dyslexic!

run our own business, UK sales way down on last year, US sales the same, nothing like they were when a euro = 1 dollar. Home sales down for the first time in years. We made hay then while the sun was shining, things a bit bleak now, (have to do big push to get extra work) just keeping our heads above water, we'll survive.

shnaek said:

IT systems replace people in a downturn. It's up to IT to make things more efficient. So in general, IT spend goes up in a downturn.

Couple that with the dramatic reduction in IT graduates we have here in Ireland since the .com collapse and you end up with more IT work, and less people to do it.

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Having worked in IT for a while, I'm not convinced by this. Only if there is a watertight business case will businesses look to automate. In general IT spend goes down in a recession - no upgrades of software/equipment, reduction of headcount, outsource of support functions. Or so it has been in the last few recessions.

The Irish IT sector is in the main younger than the last major recession, so we've no way of knowing how resilient it will be.

Also it seems IT salaries haven't being rising much so despite less graduates supply is apparently meeting demand.

If there's a US recession significant tech layoffs are pretty much guaranteed and I don't see much slack in the job market to absorb them.

I'd guess many laid off tech workers would emigrate rather than struggle to find suitable work here or battle the Irish cost base to setup their own business. (Or clean the streets has has been suggested sensitively in another thread.)

If the sector that arguably started the Celtic Tiger ups and leaves things could get bleaker.

uiop said:

I think I'll apply for a handy public service job and become a socialist






Why is it every time I open a newspaper, potential students are being told to study IT when the salaries and competition for jobs is crap ?

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I've got to disagree with that.

Maybe permanentr jobs pay badly but IT is one of the only induistries i know where by contractors are hired with such regularity.

Pretty much most IT contractors get paid very well.

Your regular pleb IT merchant will get paid 80k a year minimum

As for any lead or management roles you arte looking at 100k+.

IT, on a contract basis, offers,in my opinion, the most flexible and well paid living there is.

Bubbly Scot said:

My hubby is an IT Contractor, he says daily rates are down a bit, less contracts out there but the credit crunch will ultimately lead to an explosion in that sector.

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Hi BS,

Can you explain how the crunch will lead to an explosion in the sector?

I work in IT and am getting disheartened by all the jobs moving to India. This is completely separate to the Hiberian thing, but lots other companies are making low profile moves that don't hit the headlines

From what I can see their salaries are about 1/3 of ours but they're just as, if not more skilled. I think these moves are a big threat to many Irish jobs.

Just my opinion tho...

Edit: BTW I am an IT specialist (as such), and am seeing high level IT and Tech Engineering roles moving to India, especially in the MNC arena

Has anyone looked at the positives:

Rip off Ireland is now dead.
At last real value is starting to find its way back as compition becomes prevalent.
Far too long we as a nation were readily handing over cash for over inflated prices and services.
It will sort the men from the mice.

PADDYBOY99 said:

:

Rip off Ireland is now dead.
At last real value is starting to find its way back as compition becomes prevalent.

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The rip off culture has taken a few hits but has a long way to go before prices get back to an acceptable level, if ever in some areas. As I write Mrs Humdinger is in Belfast doing a monthly shop, getting some furniture in IKEA, clothes etc etc. This has become a monthly trip over the last year. I look forward to being able to spend my money in Southern Ireland when prices get back to an acceptable norm ... today it is still worth our while to travel north and that is not good for our economy. So we are "shopping around" in mary harney terms but not doing it right in mary couglan terms !!!

Its worth thinking whether we will ever have proper competition ... look at where an average family spends money.
- food - no real competition at multiple retailer level and it seems Aldi/Lidl are even priced substantially higher here
- clothing - good levels of competition in this area ...lots of sales on at the moment as well
- entertainment - way over the top in terms of pricing and hopefully will see some price competition going forward ... especially on kids related stuff
- pubs/restaurants - enough said and there will be casualties in this area in the next couple of years
- waste, insurance ... scope for increased competition here.
- telecomms - Eircom still own the infrastructure which limits scope for real competition
- ESB/Gas - ouch ... protected state agencies. In 2020 it will be worse as we have no other options as wind/wave etc can't make up the gap. Put the metro North money into a nuclear plant and get over the emotion of it.

So there are some areas where there is scope for competition though on a population base of 4.5 million, there is not always the incentive for the players to look past some pretend level of competition where its really a duopoly.

Attitude - Eddie Hobbs was lauded and lambasted in equal proportion for his Rip Off Republic programme - its worth another screening by RTE.

I am a self employed contractor in the pharma sector and may need to go abroad to get work in the near future.

Not ideal with a wife, a 14 month old and an 8 week old at home.

Needs must as they say though.