Written answers
Wednesday, 24 October 2007
Department of Enterprise, Trade and Employment
Job Losses
8:00 pm
Bernard Durkan (Kildare North, Fine Gael)
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Question 200: To ask the Minister for Enterprise, Trade and Employment the number of jobs lost to the economy due to relocation or closed down for other reason in each of the past ten years; and if he will make a statement on the matter. [25767/07]
Bernard Durkan (Kildare North, Fine Gael)
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Question 202: To ask the Minister for Enterprise, Trade and Employment the number of new jobs created here in each of the past ten years; and if he will make a statement on the matter. [25769/07]
Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 200 and 202 together.
Table 1 sets out details of jobs created and job losses in the enterprise development agencies under my remit in the period 1997 to 2006. In that period 294,713 new permanent full time jobs were created while job losses amounted to 236,057 giving a net increase in employment in these agency firms of 58,656. It is not possible to quantify how many of the job losses incurred in the period were due to relocation or company closures. Many of the job losses incurred in the period were situated in low value added manufacturing and these losses have been more than offset by jobs created in higher value added manufacturing and the financial and international services sectors.
While enterprise agency assisted firms play an important role in creating employment they are just one element of the economic activity impacting on employment and as Table 2 indicates over 600,000 jobs have been created in the economy since Q2 1998. This represents an outstanding performance over the period outperforming many of our European counterparts and is a testament to the resilience of the economy in terms of job creation.
Ireland is no longer a low cost economy and manufacturers in particular are facing increased competition from producers in lower cost economies. The model of manufacturing in developed countries is changing and Irish enterprises are adapting to those changes and engaging in higher value added activities in order to compete in the global marketplace. This has been achieved as a result of increased productivity, technology levels and sophisticated skills of Irish employees. Competition for foreign direct investment (FDI) is also 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 Programme for Government contains a range of commitments focused on maintaining and enhancing our framework competitive conditions, and promoting new areas of competitive advantage, including by developing our R&D base, investing in critical physical and communications infrastructures, and promoting tertiary education and lifelong learning. Over the period of the new National Development Plan the Government will provide €3.3bn investment specifically to support the development of the indigenous and FDI enterprise base in addition to NDP investment in infrastructure and skills.
Table 1: Job Gains and Job Losses in Enterprise Agency* Assisted Companies | |||||||||||
1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | Change in Period | |
Job Gains | 29,215 | 30,597 | 36,825 | 43,465 | 28,861 | 25,782 | 22,818 | 24,415 | 26,904 | 25,831 | 294,713 |
Job Losses | -13,743 | -16,526 | -20,289 | -20,086 | -31,914 | -34,230 | -30,092 | -25,298 | -23,680 | -20,199 | -236,057 |
Net Change | 15,472 | 14,071 | 16,536 | 23,379 | -3,053 | -8,448 | -7,274 | -883 | 3,224 | 5,632 | 58,656 |
* Enterprise Ireland, IDA Ireland and Shannon Development. | |||||||||||
Source: Forfás Business Information System. |
Table 2: QNHS Data Persons in employment (Thousand) Quarter 2 1998-2007 | |||||||||||
1998Q2 | 1999Q2 | 2000Q2 | 2001Q2 | 2002Q2 | 2003Q2 | 2004Q2 | 2005Q2 | 2006Q2 | 2007Q2 | Change in Period (,000) | % increase over period |
1494.0 | 1589.1 | 1671.4 | 1721.9 | 1763.9 | 1793.4 | 1836.2 | 1929.2 | 2017.0 | 2095.4 | 601.4 | 40.3 |
Source: CSO Database Direct. |
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