Ireland set to cut back on foreign workers

Ireland may cut the number of foreign nationals being given work permits after figures published today showed showing the first year-on-year increase in the country’s unemployment level in five years.

The move is also being considered in response to a series of developments yesterday which are set to lead to the loss of more than 1,100 jobs by the end of the year.

The possibility of reducing the number of immigrants allowed to work in Ireland was raised by Tánaiste Mary Harney, who had earlier stressed that the economy remained fundamentally sound despite the latest job losses.

Later, in Galway, she admitted concern over the latest developments, but insisted that Ireland was not in a recession, despite the continuing consequences for the economy of the September 11 terrorist attacks on New York and Washington.

Ms Harney, who is Minister for Enterprise, Trade and Employment, said the number of foreign nationals getting work permits was likely to be reduced sharply ‘‘in the immediate future’’.

The Government had adopted ‘‘a very liberal regime’’ in relation to immigrants in recent years, with up to 60,000 being granted work permits, she said.

But a more conservative approach would be adopted, she said, adding that the issues of overseas workers was ‘‘one of the safety valves we have for dealing with the present slowdown’’.

The Central Statistics Office put the number of people claiming jobless benefits last month at more than 141,800, an increase of 5,200 on September after adjustments for seasonal factors.

That represented a rise of 2,600 on the number of unemployed in October last year, marking the first annual rise since September, 1996.

The returns left the jobless rate at 3.9%, up by 0.2% over the month.

But observers pointed out that the total in 1996 stood at 278,400 and reflected a much higher percentage of the then workforce.

Government chief whip Seamus Brennan said the rise in unemployment marked the ‘‘inevitable impact’’ of the world slowdown.

The statistics followed yesterday’s black day on the employment front.

The job losses included: Nearly 700 workers laid off for three months by the Finnish management of Tara Mines, Co Meath, because of a drop in zinc prices; more than 320 jobs at the closed-down AFL car component jobs in Dundalk, Co Louth; Some 100 employees stood down by the Braun electronic company in Carlow; and 75 staff out of work because of the closure of the Dublin-based Tusa in-store banking service.

Opposition parties reacted critically to the new jobless figures.

Fine Gael leader Michael Noonan called on Taoiseach Bertie Ahern to take personal charge of the ‘‘mounting crisis’’.

The Labour Party underscored the need for ‘‘a coherent response’’ to what it said was 13,000 major job losses so far this year.