Written answers

Wednesday, 11 October 2006

Department of Enterprise, Trade and Employment

Job Losses

9:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 92: To ask the Minister for Enterprise, Trade and Employment his views on the statement by a person (details supplied) who has said a slowdown in the US economy could result in up to 90,000 job losses by 2010 here; and if he will make a statement on the matter. [31915/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Over the past four years, the labour force has grown by 267,400 and employment by 253,100. The latest ESRI quarterly economic commentary has forecast that employment is to grow by a further 71,000 in 2007. It is of interest to note that the worst-case scenario by the ESRI of 90,000 Irish job losses over the next 4 years is a similar figure to the 87,800 jobs our economy has created just in the past 12 months.

As a small open economy Ireland is vulnerable to any downturn in the global economy. While economic developments in the United States will always impact on our economy, it is difficult to predict the precise effect with any degree of accuracy. Competitiveness remains a key objective and although the Irish economy is noted for its openness, it is also remarkably robust. When the so-called 'dot com bubble' burst in the early years of this decade, Ireland was well placed to maintain one of the highest growth rates in Europe and one of the most impressive rates of employment growth in the OECD. In those years (2001-2003), our GNP growth still ranged between 2.8% and 5.5% per annum and unemployment annual average stayed below 5%.

Ireland has become a more open and outward looking country that is capable of leveraging trade globalisation for its own purposes. A key objective of enterprise policy is to encourage the establishment and growth of new companies in high-tech sectors such as biotechnology, nanotechnology, photonics, digital media and functional foods. Associated with this has been the emergence of some dynamic indigenous companies, principally in the high tech sectors that are competing in global markets. In addition, strenuous efforts are being made to get foreign owned companies more embedded in the Irish economy, with as many functions as is practicable being carried out here, giving a more permanent base to these enterprises.

There is now a greater balance in our trading pattern. The destination of exports has been dramatically transformed, with the European Union now accounting for over 60% of the total and the USA accounting for about 20%. Efforts to explore new markets are ongoing with new opportunities for Irish companies materialising in distant markets.

The educational and training levels attained within the labour force has resulted in the availability of an adaptable and flexible workforce. This is essential for both employees and companies in order to meet the skills changes required in market conditions that are constantly changing. Continuing and increased investment in human capital is part of current policy to assist in maintaining and improving our economic success.

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