SFA warns of more job losses in 2004

THE Small Firms Association has warned that 2004 will be another dire year for jobs following nearly 25,000 redundancies this year.

In its end-of-year statement, the SFA said 2003 had been the worst year for redundancies since 1984 and the outlook for next year was not much better. The manufacturing sector had taken the bulk of the job losses, while greater Dublin has been hardest-hit, accounting for nearly half of all jobs losses.

Unless serious action is taken, SFA director Pat Delaney says 2004 will be another bleak year. “We have been losing a job every 20 minutes and an average of 518 every week in 2003,” said Mr Delaney, with a further erosion of jobs expected in 2004.

The SFA blamed increasing costs, such as labour, insurance, energy, commercial rates and service charges.

Mr Delaney added: “the continuation of exchange rate volatility in 2004 which sees the euro strengthening against sterling and the US dollar may impact severely in exports, as Irish input costs remain high relative to competitors.”

The SFS said if competitiveness is to be regained, then costs cuts and wage moderation are the way and the days of wage growth faster than that in other EE countries must stop.

According to an SFA survey of employment, manufacturing has taken the biggest hit with almost 11,000 jobs lost. The banking, finance and insurance industries have also seen thousands of jobs lost.

Mr Delaney also expressed concern about the dip in the number of hours worked by employees, which fell from 42 to 39 hours per week.

“With the increasing number of redundancies and the lack of new jobs being created, it is no surprise that the unemployment rate has been increasing.

“Unrealistic wage expectations, the increase in the minimum wage, insurance, waste and energy increases, have led to significant job losses and reduced employment growth this year.”