Údarás reveals job loss slowdown

Údarás na Gaeltachta, the regional authority responsible for the economic, social and cultural development of the Gaeltacht, has announced net job losses for 2011 of 104, the lowest decrease in employment in a decade.

In its end-of-year statement, Údarás said the number of jobs lost in 2011 was 40% lower than in 2009.

The agency attributed the slowdown to its investment strategy, which has been focused over the past three years on supporting existing businesses. The statement said the job reductions were due primarily to companies shedding a small number of staff in order to rationalise and reduce costs.

“We’re operating in very challenging times.” said Siubhán Nic Grianna, communications and marketing manager with Údarás.

“Companies are not investing as much as they used to. They’re being very careful and, as a result, we’re not getting the same level of applications for investment through as we have in previous years,” she added.

The agency said jobs are lost annually as a normal part of the business lifecycle, but described the slowdown in the rate of job losses as “most encouraging”.

“We believe when the economic cycle turns positive, we should see growth returning to these companies very quickly,” said Ms Nic Grianna

A total of 734 jobs were created in Údarás client companies last year, bringing total employment to 7,000 full-time and 500 part-time jobs. Increases in employment numbers were concentrated in exporting enterprises in the medical devices, audio-visual, digital media, financial services and specialist manufacturing.

This year, €21 million will be invested in approved projects in Gaeltacht companies. It is envisaged these projects will create 400 jobs. In addition, the agency expects a further 700 jobs will be generated by approvals during the year.

Research by Forfás in 2011 shows sales in Údarás client companies stood at €750m in 2010, of which €399m was in the export sector, a rise of 13% on the previous year; 54% of Údarás client companies are involved in exporting&&.

Údarás has seen its state capital subvention fall from €28m in 2008 to €6m in 2011. The board of Údarás will no longer be directly elected by the community, a cost-saving measure which it is anticipated will result in savings of €500,000.