Exports grow but skills shortages and credit squeeze hamper expansion

Despite increasing exports the private sector has experienced a dramatic decline in investment from over 23% of GDP in 2005 to 7% in 2011.

There is a serious skills shortage in certain sectors and the credit squeeze by banks is hampering expansion by indigenous enterprises, according to the National Competitiveness Council’s annual benchmarking report.

Ireland has the 14th highest total labour costs level in the OECD, 2% higher than the OECD average and 6% higher than the eurozone average. Ireland’s wage level is over 20% above the OECD average.