Job creation grinds to a halt

IBEC, the country’s top employer body says the latest jobs figures from the Central Statistic Office shows job creation in the private sector grinding to a halt.

Just over 33,000 net new jobs were created in the year to 30 June 2002 the CSO’s Quarterly National Household Survey.

About 30,000 or 90% of these were in the public sector while the number of new jobs created in financial services, business and other services barely offset the 14,000 jobs lost in industry over the year.

Half of the jobs lost in industry were lost in the last three months, said IBEC.

“Although we can see that some parts of the private sector are holding their own against the economic slowdown and a rapidly rising cost base, many are not. In Q1 2002, the private sector accounted for half the number of net new jobs; in the second quarter, only 10% of net new jobs are in the private sector,” said Aebhric McGibney, IBEC senior economist.

“Jobs in the private sector, which had been the engine of growth for the economy and employment over the past seven years, have effectively come grinding to a halt.”

The realities for many businesses show that cost base are rising faster than their competitors due to higher labour, energy and insurance costs.

Mr McGibney attacked the increase in jobs in the public sector which he accused of being unaware of “the harsh financial realities that many private sector businesses are facing.

“The increase in public service numbers is unsustainable and does not reflect the considerable deterioration in the economy,” he said.

In addition, the increase in numbers has been committed without securing greater efficiencies or productivity from the public sector.