Ibec: 31% increase in jobs created

There was a 31% increase in new jobs announced over the past six months compared with 2012, in what is a much better than expected recovery in the labour market, according to the employers’ group Ibec.

It called on the Government not to introduce any new hikes to Vat, PRSI or excise duties, which it claims would harm and potentially derail the recovery in employment opportunities.

The report released by Ibec shows that there were 8,259 new jobs created in the past six months with 2,100 announced during September.

“The jobs recovery has been better than most expected, but unemployment remains at crisis level. Any excise, Vat, or PRSI increase will directly hit the number of new jobs next year. We simply cannot afford to take more money out of the domestic economy,” said Ibec chief economist Fergal O’Brien.

“Irish excise rates are already among the highest in Europe. Any increase would cost jobs, further squeeze struggling consumers and potentially reignite cross-border shopping. The Irish exchequer gains nothing if trade is simply pushed north of the boarder.

“There is increasing evidence that further tax increases are likely to result in less revenue for the state, not more. Last year’s significant excise increase has not delivered the anticipated return. Government has said the budget will be pro-growth and pro-jobs, but increasing indirect taxes like excise would damage employment in the drinks and hospitality sectors,” he added.

The main findings of the report are that the manufacturing sector accounted for one-third of all new jobs created. There has been 15 separate jobs announcements in the informational technology sector over the past six months.

Numbers in long-term unemployment fell 12.3% on an annual basis, but remain unacceptably high at nearly 60% of total unemployment. The fastest growing sectors were the agriculture, forestry and fishing which added 18.6% to its employment levels, while the accommodation and food service activities added 8%. Numbers on the Live Register have fallen for 14 consecutive months since Jun 2012 with 17,000 people coming off the Live Register.