Job Creation

Questions (98, 99)

Bernard Durkan

Question:

98. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which efforts continue to be made to encourage indigenous job creation with particular reference to high areas of unemployment in the country; and if he will make a statement on the matter. [51086/13]

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Bernard Durkan

Question:

99. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which areas of high unemployment and youth unemployment are being specifically targeted in the context of job creation in both the manufacturing and service sectors and in respect of foreign direct investment and indigenous enterprises; and if he will make a statement on the matter. [51087/13]

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Written answers (Question to Jobs)

I propose to take Questions Nos. 98 and 99 together.

The latest data from the CSO shows that in the year to September 2013, there was an increase of 3.2%, or 58,000 people, in employment. Unemployment has fallen from 13.6% to 12.8%, and youth unemployment has decreased from 31.1% to 26.5% over the year to September 2013.

In terms of indigenous industry, Enterprise Ireland recognises the significant unemployment challenge facing communities throughout Ireland. Enterprise Ireland works with its clients throughout the country to help to drive employment creation. Enterprise Ireland employs a holistic, developmental approach and engages client companies across all aspects of the value chain. Enterprise Ireland works with clients on business development, sales and marketing capabilities, innovation and R&D activity, technology development, continuous competitiveness and lean improvements, on-going leadership and management development, and access to finance.

In 2012, total employment in Enterprise Ireland’s client companies increased to 169,451, made up of 145,460 in full time jobs and 23,991 in part-time positions. This positive performance by Irish companies was achieved notwithstanding the continuing economic challenges at home and abroad. The total direct and indirect employment impact associated with Enterprise Ireland client companies is estimated to total more than 300,000 jobs.

The companies that Enterprise Ireland works with are a vital source of employment in every county in Ireland; in 2012 almost two-thirds of jobs in Enterprise Ireland assisted companies were outside of Dublin. In December 2011 Forfás published the South East Employment Action Plan to help address the high unemployment rate facing that region. This was followed by the development of an action plan for the Mid-West region following the decision to restructure the tourism and enterprise support agencies in the region. Enterprise Ireland is targeting the creation of 12,000 new jobs in 2014.

The Foreign Direct Investment sector is a major contributor to the Irish economy, with 1,000+ companies, employing over 150,000 people and generating €122bn in exports per annum. In addition, because Irelands FDI focus and competitive advantage is concentrated on high technology sectors requiring high education and skill levels, a high proportion of FDI employment and new employee take up is from young people with third level education qualifications.

In addition to the direct employment impact of FDI, it also generates a substantial downstream spill over employment impact, via employment in construction, facility maintenance, services suppliers, and the spending of wages/salaries and tax revenues in the economy. A study by Indecon consultants in 2010 for Forfas estimated this indirect employment impact to be about 70% of the direct employment impact. Again a significant amount of this indirect employment contributes to reducing youth unemployment in the economy.

The FDI sector also impacts very positively on the Irish economy via the large amount of R&D being carried out by IDA Ireland client companies, with wide ranging positive effects on employment across the economy, much of it highly qualified young people. IDA Ireland is targeting the creation of 12,000 new jobs in 2014.

Despite the significant job losses in manufacturing up to 2010, there are now 205,700 people directly employed in the sector in Ireland, and a similar number of people employed indirectly: the total supported within the sector is therefore just over 400,000. In 2012, in order to build on the potential for this sector I asked Forfás to undertake an analysis of Manufacturing in Ireland and the resultant Strategy, which I launched earlier this year, sets a comprehensive suite of recommendations to develop the sector, which are now being progressed. The Strategy identifies that an additional 20,000 jobs can be created in Manufacturing by 2016. The tide is already turning, as in the years 2011 and 2012 there was a net increase of 3,700 jobs in the Manufacturing sector. Some of the other more detailed statistics requested by the Deputy are not readily available.

A particularly attractive feature of manufacturing in Ireland is the fact that many of the present jobs are not in the main urban areas, but dispersed into regional locations, thereby providing a valuable employment focus in areas where alternative jobs are scarce. The further development of the sector will, of course, build on this key feature. In addition, the wider economic indicators are now looking quite positive. The Private Sector is creating an overall 3,000 jobs every month as our competitiveness improves and consumer confidence slowly returns. This is a dramatic recovery from the position of a few years ago.

The role of the County Enterprise Boards is to promote entrepreneurship, company start-ups and expansion, and job creation at local level. In 2012 the 35 County and City Enterprise Boards created 4,858 new full time jobs, and are expecting to create a similar number in 2013 and 2014.

The Department of Jobs Enterprise and Innovation, together with the Enterprise Ireland, is also examining options for CEB-led initiatives aimed at promoting youth entrepreneurship, including a mix of financial supports for business start-ups, feasibility studies and mentoring.

Background Information

Programmes aimed at youth & regional entrepreneurship

Enterprise Ireland Graduate Programmes

Enterprise Ireland currently has two graduate development programmes which are primarily focussed at the under 25 age group (less than 2 years post graduation) – The Innovate Programme delivered by WIT and the Graduates 4 International Growth Programme (G4IG). These posts are targeted at graduates with a 2.2 or higher grade average and less than 2 years post graduation experience. The programmes provide a company with a capable graduate to work in their business (International Markets or R&D) while getting a graduate development post grad qualification at the IMI/NUIC or WIT. The graduate’s employment costs are subsidised for up to 18 months.

- To date 119 companies have hired 127 graduates with support from Enterprise Ireland in identifying, employing and training graduates in Internationalisation.

- The G4IG 2013 programme is currently open for recruitment. Approximately 300 recent graduates are currently registered for the programme which has 35 companies approved with 46 positions.

- Eight companies employing eight graduates are taking part in the pilot technovation graduate programme in Waterford IT.

Other programmes with a youth focus

Nurturing tomorrow’s entrepreneurs Sowing the seeds of entrepreneurship and exposing students to the fundamentals of business is an integral part of promoting an entrepreneurial culture. Enterprise Ireland coordinated and supported a number of the initiatives in 2012 to promote youth entrepreneurship and engagement in the world of hi-tech. These included CoderDojo, an Irish-led movement that is teaching kids globally to code, and our annual Think Outside the Box awards, which aim to foster a spirit of entrepreneurship among third level students

Competitive Start Fund

The purpose of the Competitive Start Fund is to accelerate the growth of start-up companies that have the capability to succeed in global markets. The fund is designed to enable those companies reach key commercial and technical milestones, for example:

- Evaluate overseas market opportunities and reach firm conclusions regarding the viability of the proposed business.

- Build a prototype.

- Secure a reference site.

- Develop a market entry plan for exploiting international opportunities.

- Secure partnership deal or strategic alliance.

- Identify suitable channels to international markets.

- Secure third party investment e.g. business angel, Venture Capital.

The CSF is open to entrepreneurs establishing early-stage businesses in the manufacturing and internationally traded services sectors. As with all EI supports, there are no set age limits, and there is a modest level of investment from the promoter required to avail of EI funding. As such, the CSF can represent an opportunity for youth entrepreneurs to avail of seed funding where the proposed project has international potential.

Think Outside The Box Awards

The Think Outside the Box Awards is aimed at third level students with a novel idea for a new business. Focusing on the development of business ideas with real commercial potential the provides cash prizes and the opportunity to avail of €30,000 worth of specialist advice and assistance to potentially help turn the enterprise idea into a business reality. The awards are sponsored by Enterprise Ireland, Invest Northern Ireland, Intel, Cruickshank Intellectual Property Attorneys and Grant Thornton. The Think Outside The Box Awards have an exclusive focus on third level students, from all academic disciplines and courses of study, and offer the opportunity to realise entrepreneurial ambitions.

Be part of Ireland getting back on its feet and help to drive the economy by commercialising your business ideas and considering starting your own business as a viable career option. Submissions for the awards are accepted all year round and both Enterprise Ireland and Invest NI business mentors are available to help to develop the business idea.

Given the focus of the Awards (3rd level), a significant number of the participants are in the youth entrepreneur cohort. Former winners have gone on to participate in business start-ups, and have availed of EI support.

New Frontiers

New Frontiers is Ireland’s national entrepreneur development programme that is delivered at a local level by the Institutes of Technology. For those with an innovative business idea and planning to establish and run your own company, the New Frontiers Entrepreneur Development Programme can provide a package of supports to help accelerate business development and to equip entrepreneurs with the skills and contacts needed to successfully start and grow your company.

New Frontiers provides Entrepreneurs with:

- Training in all areas of business including financial management, market research & validation, business process, patenting, product development, sales training.

- Mentoring from experienced business advisers and practitioners.

- Office and other business incubation facilities.

- €15,000 scholarship to cover full-time participation in the six month course.

- Networking with other entrepreneurs and business development agencies.

- Introductions to seed and early stage capital investment networks.

- Access to entrepreneurship best practice, both national and international.

- Peer-group learning from participants in the region and across the country.

- Access to the expertise in Enterprise Ireland through our Market Research Centre.

- Expertise from the Institutes of Technology and the supportive environment of their business incubation centres.

Launched in February 2012, the New Frontiers Entrepreneur Development Programme aims to support the creation of 100 high value, knowledge based, Irish owned businesses, each year. The programme can represent a good avenue for youth entrepreneurs with an innovative business idea to develop and hone their plans and develop an investor ready proposition.

FoodWorks

Bord Bia, Enterprise Ireland and Teagasc are working together on a food sector entrepneurship programme which offers access to a range of supports including assistance in developing the business proposition, market research, and advice on business financing and supplier development.

The County Enterprise Boards (CEBs) throughout the country provide supports, both financial and non-financial or "soft" supports, to all micro-enterprises in the start-up or expansion phase in manufacturing and services, subject to certain conditions. The soft supports include the provision of business advice, training and mentoring to all clients. The aim is to develop indigenous enterprise potential, stimulate economic activity at local level and promote the establishment of micro-enterprises within their administrative area. These supports are available to everyone, regardless of age.

IDA Ireland is also actively supporting the recent Pathways to Work initiative and in this regard:

- Has recently agreed a protocol with DSP to enhance cooperation on increasing the possibilities for unemployed persons to take up job opportunities in FDI companies

- Is actively using the DSP unemployment databases for marketing to clients in relation to specific projects. Over the last four months IDA Ireland has requested DSP data in relation to five individual projects.

- Is liaising closely with FAS/Solas on putting in place focused training initiatives that can effectively and quickly bridge any skills gaps remaining among unemployed persons identified using DSP data bases.

- Is actively marketing JobBridge internships and the recently introduced JobsPlus incentives to client companies.

Job Creation Data

Questions (100, 101, 103, 104, 105, 106)

Bernard Durkan

Question:

100. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which the manufacturing sector continues to create employment; the extent to which efforts continue to be made to ensure the retention of the maximum number of manufacturing jobs throughout the country; and if he will make a statement on the matter. [51088/13]

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Bernard Durkan

Question:

101. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent if any to which the number of jobs created in the services sectors as compared with manufacturing have been recorded in each of the past five years to date; the future prospects in this regard; and if he will make a statement on the matter. [51089/13]

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Bernard Durkan

Question:

103. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the total number of jobs created or lost in the manufacturing, service or IT sectors in each of the past five years to date; the extent to which trends have been identified over this period; and if he will make a statement on the matter. [51091/13]

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Bernard Durkan

Question:

104. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which emphasis is being placed on job creation in the manufacturing sectors over the past five years to date; the extent to which areas of high unemployment/social/economic deprivation are specifically targeted in this regard; and if he will make a statement on the matter. [51092/13]

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Bernard Durkan

Question:

105. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which this country remains competitive in attracting investment and job creation in the manufacturing and service sectors; and if he will make a statement on the matter. [51093/13]

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Bernard Durkan

Question:

106. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department continues to identify areas where manufacturing or service jobs might be threatened by relocation of specific enterprises to low wage economies affecting either this jurisdiction or Europe as a whole; and if he will make a statement on the matter. [51094/13]

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Written answers (Question to Jobs)

I propose to take Questions Nos. 100, 101 and 103 to 106, inclusive, together.

Despite the significant job losses in manufacturing up to 2010, there are now 205,700 people directly employed in the sector in Ireland, and a similar number of people employed indirectly: the total supported within the sector is therefore just over 400,000. Last year, in order to build on the potential for this sector I asked Forfás to undertake an analysis of Manufacturing in Ireland and the resultant Strategy, which I launched earlier this year, sets a comprehensive suite of recommendations to develop the sector, which are now being progressed. The Strategy identifies that an additional 20,000 jobs can be created in Manufacturing by 2016. The tide is already turning, as in the years 2011 and 2012 there was a net increase of 3,700 jobs in the Manufacturing sector. Some of the other more detailed statistics requested by the Deputy are not readily available.

A particularly attractive feature of manufacturing in Ireland is the fact that many of the present jobs are not in the main urban areas, but dispersed into regional locations, thereby providing a valuable employment focus in areas where alternative jobs are scarce. The further development of the sector will, of course, build on this key feature. The Services sector accounts for two thirds of total employment within Ireland. While the majority of service firms are not supported by the State, in respect of agency supported companies, the total number of jobs lost in 2012 was 7,815; the number of jobs gained in 2012 was 14,187. Therefore the total net new full-time jobs created in the agency supported service industry for 2012 is 6,372. This is very positive growth. The Action Plan for Jobs 2012 included a series of actions across a wide number of sectors including manufacturing and services. By implementing the 2012 and 2013 Action Plans for Jobs and the new 2014 Action Plan for Jobs , to be developed in the New Year, the Government is confident that further growth in employment in both sectors will be achieved.

It is, of course, self-evident that with greater globalisation, reduction of tariff barriers and with the ease of transporting goods, that patterns will be changing and there will an inevitable movement of production of lower cost, less specialised goods towards cheaper labour countries, especially in Asia. This is part of a wider global pattern. Although it is very challenging in an internationally competitive environment, there is considerable potential for the manufacturing and services sectors in Ireland, as we are strongly placed to create opportunities and employment in many higher skilled, higher-value sub sectors, where we have a competitive advantage and it is important we concentrate on these areas and maintain our natural advantages. This will assist in our work of attracting Foreign Direct Investment.

In addition, the wider economic indicators are now looking quite positive. The Private Sector is creating an overall 3,000 jobs every month as our competitiveness improves and consumer confidence slowly returns. This is a dramatic recovery from the position of a few years ago.

The Action Plan for Jobs includes a series of actions across a wide number of sectors including manufacturing and services. By implementing the 2012 and 2013 Action Plans for Jobs and the new 2014 Action Plan for Jobs, to be developed in the New Year, the Government is confident that further growth in employment in both sectors will be achieved. Forfas produce an Annual Employment Survey which includes yearly figures for jobs created in Agency-supported companies in certain sectors and relevant data for the past five years for both Business, Financial and Other Services and also for Information, Communication and Computer Services are shown in the table on the next page. As you will see, recovery in both these sectors is well underway.

-

2008

2009

2010

2011

2012

Business, Financial and other Services,

47,017

44,041

43,468

45,917

47,555

Information, Communication and Computer Services

65,426

59,940

62,034

66,852

71,586

Foreign Direct Investment

Questions Nos. 103 to 106, inclusive, answered with Question No. 100.

Questions (102)

Bernard Durkan

Question:

102. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which foreign direct investment has taken place on an annual basis from 2007 to date; and if he will make a statement on the matter. [51090/13]

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Written answers (Question to Jobs)

Details of employment data relating to FDI performance from the year 2007 and up to 2012 are set out in the attached tabular statements. I am pleased to inform the Deputy that IDA Ireland’s mid-year results, announced in July last, showed that foreign direct investment into Ireland was very strong in the first half of this year. During this period, there was an increased number of investments, with approximately 7,000 associated jobs to be created as companies implement and complete their investment plants. This trend represents a continuation on the strong performance announced by IDA Ireland at the end of 2012, during which year, in excess of 12,000 jobs were created by multinational companies. The 2012 results represented the third consecutive year of growth in net employment in IDA Ireland client companies.

Work in winning new investments has been continuing steadily in the second half of 2013 and, on the basis of the trends so far, I am confident that the targets set out for IDA Ireland in the Action Plan for Jobs 2013, of winning more than 130 new investments, securing €500m in R&D and creating 13,000 jobs in IDA client companies, will be achieved. Among the companies who announced job creation plans or fresh investment plans to date in 2013, were: Ebay, EMC, McAfee, Pfizer, Sanofi, Symantec, Zurich, Huawei, Yahoo, Facebook, Vistakon, Guidewire, Squarespace, Groupon, Qualcomm, Novartis, Nypro, AOL FireEye, and Deutsche Bank.

IDA Ireland is nearing completion of the fourth of its five year Horizon 2020 strategy and the latest results put the organisation ahead of target in meeting its goal of creating 62,000 direct jobs by 2014 from 640 new investments. Over the course of the first three years (2010-2012) IDA has secured 419 investments and has delivered gross job gains of over 36,000.

Table showing data relating to FDI performance from 2007 to 2012

Employment Data

2007

2008

2009

2010

2011

2012

Permanent Employment

140,369

139,457

126,866

126,305

130,867

136,505

Other Jobs

15,939

13,453

11,788

13,976

15,348

16,280

Total Number Employed

156,308

152,910

138,654

140,281

146,215

152,785

Questions Nos. 103 to 106, inclusive, answered with Question No. 100.