Profile of the Catchment Area
Population Growth and Spatial Distribution:- Census 2002 results (CSO, 2002) indicate that the population of the DLDC catchment region has increased by 7% between 1996 and 2002, from 76,181 to 81,456 persons. Unsurprisingly, the most marked population increase has been within the Letterkenny Rural Area, which recorded a 29% increase in population over the corresponding period. The catchment remains characterised by 5 primary urban centres to include Letterkenny 15,231 persons, Ballybofey-Stranorlar 3,603 persons, Ballyshannon 2,715 persons, Donegal Town 2,453 persons and Bundoran 1,842 persons. It must be noted however, that together these towns and their environs account for merely 32% of catchment population, as the principal catchment remains spatially distributed throughout and intrinsically rural across.
Rural Population Decline:- One of the most striking characteristics, across rural DED’s throughout the catchment has been the relative decreases in population, and the “Rural-depopulation” phenomenon. Quite notably, 41 of our DED’s are within the CLAR designated area and are assisted at a local level through the LEADER+/NRDP programmes. 61 DED’s have actually experienced population decreases over the 1996-2002 interim census period. Such decreases are quite significant for small towns and ‘disadvantaged rural communities’ throughout the catchment, and threaten the economic, social and cultural fabric of our catchment.
Local Economy and Infrastructure:- The local-economy in Co. Donegal has endured a successive series of industrial shocks, particularly as a result of the counties “textile-dependence,” the lure of third-world economies with significantly lower cost-bases for firms operating in this industry, and the subsequent mass redundancies effected by the industries largest local employers: UNIFI; Fruit of the Loom; Nena Models; Gaeltex. Sustainable development of the local-economy essentially remains dependent upon indigenous Irish-enterprises, the tourism industry and our ability to circumvent challenges presented to both the agricultural and fishing industries. County Donegal is situated in the extreme north-western tip of Ireland, and is significantly removed from the Nation's capital city, Dublin, which proved to be the epicenter for Foreign Direct Investment (FDI) on the part of largely American (parent) organizations during the Celtic Tiger Phenomenon years. Donegals peripherality has therefore created operational and logistical difficulties, in terms of attracting firms seeking to establish a presence in the Irish economy. These problems are compounded by the total absence of any public rail network structures.
Changing Occupational Profiles and Employment:- According to Census 2002 (CSO, 2002), 45.9% of persons, 15 years of age and over were in employment in Co. Donegal. Comparison of 1996 and 2002 census results, provides confirmatory empirical evidence that two of the county’s anchor industries, “Agriculture, forestry and mining,” and “Manufacturing,” which accounted for 39.3% of all employment in the region in 1996, now account for simply 24% of all employment. From an economic perspective, it is encouraging that we have reduced the level of employment dependence on an industrial basis, from a social perspective however, it is alarming that contraction of these industries came at a cost of 3,867 job-losses over the corresponding period, as opposed to relative employment growth in other industrial sectors. The greatest employment-growth sector within the local economy has been in the construction industry, which recorded an increase of 2,327 persons or 11.2% of total employment in the county, with wholesale and retail trades accounting for a further 13%. Despite a vibrant leisure and tourism industry throughout the county, the hotel and restaurants sector accounts for simply 6.2% of total employment in the region, with associated seasonal variances.
Economic Status and Unemployment:- According to the Census 2002 report (CSO, 2002) on economic status, the total number of persons aged 15 years and over that were unemployed in Co Donegal totaled 7,923 persons or 7.5% of total population. This figure has decreased marginally from a figure of 10.3% or 9,967 persons recorded in 1996. However, one must note that the percentage of total population 15 years of age and over unemployed, should not be confused with the common definition of the unemployment rate, which is a measure of “unemployed persons” and “first time job seekers,” as a proportion of total labour force. The unemployment rate within the DLDC catchment in 2002 totaled 15.9%, with almost one-third of the Partnerships DED’s recording a rate in excess of 20%. These details are alarming and are indicative of the real-unemployment deprivation experienced across the catchment.
The “labour-force participation rate,” in Co. Donegal operated at 42.4% at Census 2002, markedly below the national average of 47%, and among the lowest totals nationally. There are significantly low rates of participation for both men and women within the 15-19, and the 55-64 age categories within the county, participation of women in the labour-force is, however, as low as 30% for these age categories. In itself, this indicates the enormity of the socioeconomic problems experienced throughout the region, “particularly by disadvantaged women.

