Job losses are of major concern to everybody and recent job loss announcements reflect the fact that, notwithstanding the success of the Irish economy, the maintenance of competitiveness remains a key challenge. The most vulnerable jobs in Ireland are those in relatively low skill areas, where openness to competitive pressures is greatest. Concentration on upskilling and retraining the workforce is essential to meet the demands of the changing environment. A primary element of current policy being implemented by the industrial development agencies is to assist companies to move up the value chain into higher skilled and better paid jobs, which should help to secure employment.
The slowdown in the US economy is having a negative impact on the overseas-owned manufacturing sector in Ireland, resulting in job losses and slowdown in recruitment and planned expansions by some major multinationals. However, the current buoyant labour market conditions in the economy mean that those losing jobs are unlikely to experience significant difficulty in finding alternative employment.
Further slowdown of the US and European economies could affect job creation prospects. The impact to date on the Irish economy in terms of growth, and employment-unemployment has been small and has been confined mainly to the information technology related sectors. IDA assisted companies in this area are relatively new and focused on higher value products, often incorporating functions such as customer-technical support, software development, and logistics, which make them less vulnerable. However, a stronger and more prolonged slowdown in the US economy would have more serious consequences for growth and employment in Ireland. It is essential, therefore, that key issues over which we have some control, and which impact significantly on the competitiveness of Ireland as a base for investment, should continue to be given priority attention and addressed. Key issues include implementing the national development plan on schedule, particularly the rollout of infrastructure into the regions, wage and price inflation, ensuring a stable industrial relations environment and adequate skills supply. The development agencies will continue to promote vigorously industrial development in unemployment blackspots throughout the country.
As regards specific company downsizing or closures, the State agencies work closely together and with local authorities and other local development interests to facilitate an integrated development approach and promote a favourable climate for business. In such cases, the attraction of replacement jobs, expansion of existing industry, provision of retraining and identification of alternative employment opportunities will continue to be high priorities.