Bernard Durkan (Kildare North, Fine Gael)
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Question 233: To ask the Minister for Enterprise, Trade and Employment the net number of new jobs created here in each of the past five years; the number which were high tech or high wage; the number of lower paid jobs; and if he will make a statement on the matter. [12489/05]

Micheál Martin (Cork South Central, Fianna Fail)
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Employment data is not provided in a format that differentiates between types of employment or salary levels.

In the past few years, conditions in the global economy have been difficult, and Irish firms have had to win business against a backdrop of difficult external demand conditions, pricing pressures and an increasingly competitive international environment. These factors have affected employment trends in companies assisted by the enterprise development agencies. While the net increase in employment in agency-assisted companies in 2000 was 24,000 jobs, subsequent years have shown a net fall off in the numbers employed in such companies. However, employment in these companies is still one third higher than it was a decade ago. This is a strong performance in the context of global economic circumstances.

There are now indications that economic prospects are improving and our propensity to capitalise on trends in global growth is likely again to stimulate business expansion and real employment growth. The ESRI has indicated that labour market conditions are expected to remain strong both this year and next, with unemployment stabilising to average 4.3% in both 2005 and 2006, supported by significant growth in GNP. In light of the intense global competitive pressures, these forecasts show that our economy maintains considerable strengths.

We have become a more sophisticated and developed economy where the application of technology and intellectual endeavour is becoming more important than simple cost competitiveness as the foundation for growth and prosperity. To counterbalance the competitive threat from lower wage competitor economies, our policy is to encourage a move to higher levels of productivity and value added products and services because these types of enterprise create high-skill employment. Sustainable employment will be driven by companies with higher profitability that are more technologically advanced and prove a better fit with the competitive characteristics of our economy.

The enterprise development agencies are working to source new investment by a combination of developing existing clients and new investors in existing or new activities or sectors. Given the critical mass of FDI in Ireland and its linkages with indigenous companies, one of the greatest potential contributions will come from developing companies already operating here. The enterprise development agencies are working to encourage companies into more sophisticated activities where competitive advantage is less likely to be whittled away by cost based competition.