IDA in second year of record job growth

IDA Ireland has reported its second consecutive year of record job creation; largely driven by the lowest level of job losses among client firms in over a decade.

The agency said yesterday — via its end-of-year review — that 2012 saw a gross total of 12,722 jobs created through its client companies. While this figure was marginally down on the 13,381 reported for 2011, the more relevant net job creation figure of 6,570 was up by nearly 11% on the 5,934 figure from the previous year.

The net jobs figure is a record for the IDA and was driven by a significant fall in the number of job losses at client firms. In all, 6,152 IDA-created jobs were lost during 2012 — the lowest level of cuts in over a decade and down from a figure of 7,447 for 2011.

Jobs Minister Richard Bruton called last year’s performance “exceptionally strong”, while IDA chairman Liam O’Mahony called it “a good year in difficult and challenging conditions, which are likely to remain during 2013”.

IDA chief executive Barry O’Leary said that Ireland’s strong foreign direct investment (FDI) track record, skilled workforce, attractive corporation tax rate and technology capability continues to attract top investment, but he warned that competition from Britain, Holland and Switzerland was increasing.

However, Mr O’Leary added that there exists “a promising pipeline” of new job prospects from foreign multinationals covering the first half of 2013, with opportunities from some big name companies “in play”. Last year saw a number of big companies invest here — including PayPal, Apple and Cisco.

In all, 2012 saw the IDA secure 145 investments — in line with the 148 attracted in 2011. Significantly, 66 of them — more than 40% of the total activity — were first-time investments.

Mr O’Leary said that the agency’s minimum target for 2013 was to create another 6,500 net new jobs. About 60% of last year’s jobs came via high-tech sectors.

“There are definite opportunities for growth in the IT/technology sector, in specific areas of financial services, in life sciences, in social/digital media and in sectors where consolidation is taking place on a pan-European basis,” he added.

Asked what share of the new jobs had gone to Irish people, rather than foreign graduates, Mr O’Leary said that the IDA didn’t have that information. He added that the agency’s primary goal is to enhance the economic input from foreign multinationals.

On that score, exports from IDA client companies increased by 7.5% last year, outperforming the national average of 5.7% in the process. Companies also spent €18.8bn in the Irish economy, representing a 10% annualised increase.

By 2014, IDA Ireland is targeting 640 investments since 2010, with 62,000 new jobs, €1.7bn in client investments and 50% of investments to be located outside Dublin and Cork.