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Dáil Éireann debate -
Tuesday, 18 Feb 2003

Vol. 561 No. 4

Written Answers. - Industrial Employment.

Joe Sherlock

Question:

126 Mr. Sherlock asked the Tánaiste and Minister for Enterprise, Trade and Employment if numbers in industrial employment fell by 18,000 in the year to September 2002; her forecast for the likely growth or decline in the numbers employed in this sector in 2003; and if she will make a statement on the matter. [4422/03]

The latest Central Statistics Office quarterly industrial employment release gives preliminary estimates of industrial employment for September 2002. These estimates point to a decrease of 18,100 in industrial employment from 271,400 in September 2001 to 253,300 in September 2002. Most of this decline is accounted for by the electronics sector, where employment fell by 11,000. This reflects the global slowdown in the information and communications technology sector and Ireland's decline in manufacturing employment is not unique.

Key to employment creation in Ireland, and in particular employment supported by the agencies including IDA Ireland and Enterprise Ireland, is the gradual move away from more traditional manufacturing activity towards internationally-traded services activities. This shift in the employment base is reflected by the CSO Quarterly National Household Survey and the latest survey, for the quarter ended August 2002, shows that total persons in employment in all sectors increased by some 320,000 since late 1998, an increase of around 22% over four years. Given the fluctuating world economic climate, and continuing uncertainty in this regard, it is not possible for the industrial development agencies or the CSO to provide definitive forecasts of numbers employed. However, indications from both IDA Ireland and Enterprise Ireland are that there should be a substantial flow of foreign direct investment and indigenous projects over the coming months. This will of course depend to a considerable extent on a global economic recovery. The timing and pace of such a recovery is, however, uncertain.

The pipeline for foreign direct investment in 2003 gives some grounds for optimism, and indigenous projects, both start-up and expansion, with a strong research bias also look encouraging for the coming year. It is these investments that will provide the flow of new products and services and form the basis for sustainable competitive advantage, and sustained employment going forward.
Question No. 127 answered with Question No. 109.
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