State-aided jobs fall for third year in row

THE number of jobs in companies supported by Government agencies has fallen for the third consecutive year, according to the latest report by Forfás.

The agency said that although the total number of people at work in Ireland rose by 26,000 to 1.82 million in 2003, the level of employment in companies which are supported by agencies such as the IDA and Enterprise Ireland fell by 7,500 to 297,000, the third straight year of decline.

A breakdown of the individual sectors of the economy shows that manufacturing industry continues to be the hardest hit, with 21,500 jobs lost, compared to the 14,000 created. The computer and electronics sector accounted for almost half of the net decrease in this area.

The textile, paper and printing sectors also saw significant net decreases in employment, with approximately 1,000 jobs being lost in each area, Forfás said.

It added the decline in overall employment in 2003 reflected sluggish import demand from Ireland's major trading partners, increasing competition for mobile investment projects from Asia and central and eastern Europe and the rising costs of doing business in Ireland.

Employment in agency-supported companies is still one third higher than it was a decade ago when it stood at 224,000.

Forfás chief executive Martin Cronin said compared to many other economies Ireland was doing well and overall employment is still growing.

Forfás said it welcomed the introduction of a tax credit for research and development and moves to increase the skills of Irish workers to attract higher value investment.

But while the agency said there are still problems facing the economy, it was relatively upbeat about the prospects for employment. The Forfás report comes just a day after CSO figures showed that the economy grew by just 2.8% in the third quarter of last year, slower than expected.

Forfás added that for continuing development of the economy several areas need tackling including the implementation of the National Spatial Strategy, maintaining investment in infrastructural projects under the National Development Plan and improving Ireland's performance in the areas of broadband telecommunications access and costs. Promoting an increased interest in science and encouraging young people to consider science as a viable career option and giving greater emphasis and resources to upskilling people at work were also important.

“The intensification of competition from developing countries means that Ireland can no longer compete on costs alone. Further job creation requires that Ireland provides a business environment that supports increasingly complex and skilled manufacturing and service activities,” Forfás’s end-of-year statement said.