The Irish economy is now one of the most globalised in the world. As a consequence the uncertainty created by the ongoing international financial crisis and the consequent fall in demand for goods and services both domestically and worldwide has had a significant impact on our economy. Forecasting employment figures is a perilous business at any time, but is especially so in the present environment.
The latest available employment data from CSO (Quarterly National Household Survey August 2008) indicates that at Quarter Q2 2008 there were almost 7,000 additional people in employment compared with the corresponding period in 2007. This is a testament to a high degree of resilience in the economy at a time of great uncertainty in global economic conditions and the continued strength of the euro. The Government and I share the concerns of all with regard to employment, however it must be viewed in the context of historically unprecedented numbers of people in work. Since 1997, over half a million new jobs have been created in Ireland and the number in employment still exceeds 2 million. The following table shows that in the period 2002–2007 over 150,000 new full time permanent jobs were created in companies supported by the Government through the enterprise development agencies (IDA Ireland, Enterprise Ireland and Shannon Development). Of this total, 84,619 new jobs were created in the manufacturing sector.
These figures do not take account of the new jobs created with the support of the Government through Údaras na Gaeltachta, which falls within the remit at my colleague, the Minster for Community, Rural and Gaeltacht Affairs.
The economic environment is more challenging than we have seen for many years, however we have the foundations in place for long term economic growth through proactive policies such as the Strategy for Science Technology and Innovation, the National Skills Strategy and the National Development Plan. Ireland is well placed to tackle the challenges we are facing, with a strong base of modern industry, a highly skilled and flexible workforce and a pro-business culture. We continue to work to maintain and enhance our framework competitive conditions, and promote new areas of competitive advantage by developing our R&D base, investing in critical physical and communications infrastructures, in line with the NDP and the Programme for Government.
Competition for foreign direct investment (FDI) continues to be relentless but Ireland continues to punch above its weight when it comes to attracting overseas investment. While costs are higher, we have responded by positioning ourselves as a location for more advanced activities, with more qualified and better paying jobs. The pipeline of new business for which IDA Ireland is competing is as strong as at any time in recent years and we remain confident that Ireland is well placed to secure significant investment during 2008 and beyond from key target sectors such as Pharmaceuticals, Biopharma, Medical Technologies and Information and Communications Technology.
Innovation and the productivity gains that flow from it are the new foundations for competitiveness. In order to sustain and grow the manufacturing sector, Irish based manufacturing enterprises will have to continue the progression to high value added sectors and activities, and continue to increase productivity through investments in human capital, technology and innovation. The Government is fully committed to strengthening the competitiveness and productive capacity of the economy. Our priority remains the creation of high quality, sustainable employment, driven by companies with higher profitability, that are technologically advanced and prove a better fit with the competitive characteristics of our economy.
New (Full-time) Jobs Created in Enterprise Agency* assisted firms 2002-2007
|
2002
|
2003
|
2004
|
2005
|
2006
|
2007
|
Total
|
All Sectors
|
25,301
|
22,481
|
24,208
|
26,238
|
27,560
|
24,339
|
150,127
|
Manufacturing
|
14,431
|
13,919
|
13,354
|
14,895
|
14,932
|
13,088
|
84,619
|
Services
|
10,870
|
8,562
|
10,854
|
11,343
|
12,628
|
11,251
|
65,508
|
*Enterprise Ireland, IDA Ireland and Shannon Development.