IDA firms shed 2,500 jobs a year

The IDA has recorded a net loss of 2,500 jobs a year between 2008 and 2011 as multinationals cut back during the recession.

In response to a parliamentary question from Sinn Féin’s Martin Ferris, jobs minister Richard Bruton admitted that IDA-supported companies had lost 10,000 jobs between 2008 and 2011.

Mr Bruton revealed the IDA created 34,579 jobs between 2008 and 2011, but during the same period 44,650 jobs were lost in IDA client companies.

A spokesperson for the IDA said foreign direct investment was not immune to the fallout from the global economic downturn.

“Like every sector of the Irish economy, foreign direct investment was significantly impacted by the unprecedented global and domestic slowdown which occurred from 2008 onwards. This directly contributed to the figures relating to jobs lost cumulatively during this particular period,” the spokesperson said.

Mr Bruton said the Government’s performance in attracting foreign direct investment had been robust since 2011, and he claimed 12,500 jobs will be created this year.

“IDA Ireland client companies created over 13,000 new jobs despite the current global economic situation and a strong increase in international competition. In accordance with the Government’s action plan for jobs, IDA Ireland is working to target another 144 new foreign direct investment investment projects in 2012, which will create 12,500 new jobs, with an associated 8,750 in the wider economy, giving a total impact of 21,250. Up to the end of May 2012, there have been 44 IDA announcements with in excess of 5,000 jobs,” he said.

As the recession has continued to drag on, Ireland’s unemployment rate has fluctuated, hitting a record high of 14.8%. The figure was pushed up by the number of departures from the public service at the beginning of this year.

Mr Bruton said the rate at which employment is declining in Ireland has slowed since its peak in 2009.

“It can be noted that the annual rate of decline in employment peaked during 2009 at over 8%. Since then, the rate of decline has been slowing and, as of the fourth quarter of 2011, an annual employment reduction of 0.8% or 15,400 was recorded,” he said.

One of the key factors of the continued euro crisis has been a massive increase in unemployment. Unemployment in Spain has risen to 24.4% in the first quarter of this year — up from 22.9% in the last quarter of 2011. Greece has an unemployment rate of 21.9% while France has reported its highest unemployment figures since 1999 at 9.6%.