Written answers

Wednesday, 15 November 2006

Department of Enterprise, Trade and Employment

Job Creation

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 217: To ask the Minister for Enterprise, Trade and Employment the number of jobs created in the past 12 months; the proportion of these that are valued added or high wage or salary; and if he will make a statement on the matter. [38216/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The latest data from the Central Statistics Office (QNHS) indicate that there were an additional 88,000 people in employment in Quarter 2 2006 compared to the same period in 2005. Data in respect of agency-assisted enterprises are compiled by Forfás on a once yearly basis and therefore the latest data available are for 2005. In that year 26,553 new full-time jobs were created in enterprise agency-assisted firms across all sectors.

It is not possible to specify precisely how many of these jobs can be classified as high value added. However, the trend in recent years has seen higher technology and services enterprises replacing low technology production. Many of the job losses that have occurred in manufacturing in particular over the last few years have been in low cost manufacturing processes while the new jobs created in the enterprise agencies' client companies are mainly concentrated in high value-added, knowledge-based companies, offering greater security in the face of intense international competition.

Activities in areas such as Pharmaceuticals, Bio Pharmaceuticals, Medical Technologies, ICT, Globally Traded Business, and International and Financial Services will continue to provide opportunities for high value added jobs. For example, in the last five years there was a 21% increase in employment in the Medical, Precision and Optical Instruments sector, while over the same period employment in the Textile sector fell by 51%.

Services activities have become the primary source of employment growth in developed countries including Ireland. Indeed, Ireland has become one of the leading exporters of services. Between 2000 and 2005 the contribution of Services increased from 21 to 34 per cent of total exports. Computer Services, other Business Services and Finance and Insurance are the most significant growth sectors. Again, jobs in these particular areas of the services sector tend to be higher value added and high wage ones.

Enterprise policy is being actively focused towards creating conditions that will make possible a sustained shift to higher skilled, knowledge-intensive activities in which internationally tradeable services and advanced manufacturing expertise will be an important contributor to economic growth and sustainable high-quality employment.

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