Jobs market looks to global IT spend

A GENERAL increase in global IT spend over the coming months could significantly benefit the jobs market here, a conference has heard.

“About half of the losses in exportable services employment in 2009 occurred in the foreign-owned ‘IT, consultancy and computer services sector’, whose mass market-orientated sales appeared to suffer more than did the niche sales of the indigenous segment of the sector. That global IT spending appears to be on the rebound in 2010 provides some grounds for optimism,” according to Professor Frank Barry of Trinity College Dublin’s School of Business.

Prof Barry was addressing the Turning Globalisation to National Advantage: Economic Policy Lessons from Ireland’s Experience half-day conference — jointly hosted by the Economic and Social Research Institute (ESRI) and TCD, in Dublin, yesterday.

Employment levels amongst Irish-owned exporters, however, remain heavily reliant on the strength of the sterling against the euro.

“Employment recovery in the indigenous exportables sector will be heavily dependent on cost competitiveness vis-a-vis sterling, and will be constrained by the growth of Irish and UK demand,” said Mr Barry.

“While indigenous exportables employment was more buoyant than employment in the foreign segment between 2000 and 2007, it’s suffered more in the period since then. These patterns reflect the indigenous sector’s substantially greater reliance on the domestic market.”

At the same event, Central Bank Governor Patrick Honohan said Ireland’s crisis was not worsened by membership of the eurozone. “Although implicated in the actual myth that sustained the Irish boom, and in fuelling its progress, the euro wasn’t essential in either role.”