Survey raises new Irish job worries

IRELAND'S high cost base has put the country in the firing line to lose jobs to eastern Europe, according to a major annual survey released yesterday.

The World Competitiveness Yearbook, which is published by the prestigious IMD business school in the Swiss city of Lausanne, warned Ireland would lose out in the race to attract foreign investment.

IMD project director Stephane Grail said average labour costs in Ireland could not compete with those in countries that joined the EU last weekend.

"Most industrialised nations are paying more than $20 (€17) an hour for their labour cost," said Mr Grail, who added that Irish labour costs were more than six times those in Baltic states such as Estonia.

"This will mean that many foreign and European investments, which thrive on low labour and operational costs, may relocate from the west to the east of Europe. The countries that are most likely to be affected by this competition are Ireland, Portugal and Spain," added Mr Grail.

But Ireland still managed to climb one place to tenth in the IMD's overall competitiveness rankings. The IMD ranks countries based on their economic performance, government efficiency, business efficiency and infrastructure quality.

Ireland's overall ranking of 10th this year reversed the steady decline from fifth in 2000 to 11th in 2003.

The US remained in the number one position that it has held since 1994. Singapore and Canada were ranked second and third.