International financial services jobs up by 1,100

THE number of people employed in international financial services in Ireland increased by more than 1,100 last year.

The total number of people working in banking, fund management and the insurance sectors grew by 7% to 17,610, according to the Finance Dublin Yearbook, which was published yesterday. About half of the new jobs were created in the banking sector, with employment rising by 561 to 6,871.

The job gains came from companies like Merrill Lynch, which more than doubled its staff in Ireland in 2004 from 230 to 506 with the establishment of a European support services hub.

Hedge funds also proved to be a key driver in employment growth, with BISYS Alternative Investments creating 83 jobs and International Fund Services (IFS) adding 100 new jobs, bringing its staff in Dublin to 500.

The largest employers were in the funds industry and mainly based in the International Financial Services Centre (IFSC) in Dublin.

Just over 8,000 were working in the various companies.

Some 359 companies are based in the IFSC. Employment in the sector accounted for just under 1% of the national workforce at the end of 2004.

According to the yearbook, international financial services companies paid €663 million in corporation tax to the Exchequer last year, a rise of almost €45 million on the 2003 figure.

The tax-take is about 12% of the overall corporation tax yield.