Written answers

Thursday, 28 February 2008

Department of Enterprise, Trade and Employment

Job Creation

5:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 125: To ask the Minister for Enterprise, Trade and Employment the number of jobs he expects will be created in the next 12 months; and if he will make a statement on the matter. [8671/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Forecasting employment figures is a perilous business and subject to a variety of unforseen extraneous variables influencing estimates of that nature. However, employment growth — being the excess of jobs created over jobs lost — is expected to continue to be positive in 2008, though growing at a slower pace than in previous years. In the Budget Outlook employment is forecast to grow by over 1% in 2008.

The Irish economy is undergoing a certain amount of adjustment and while the rate of employment growth is expected to slow it must be viewed in the context of historically unprecedented numbers of people in work. Since 1997, over half a million new jobs were created in Ireland and the number in employment now exceeds two million. Ireland is no longer a low cost economy however, 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. The services sector continues to provide significant new employment opportunities.

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.

Looking to the future, neither the Government nor my Department are complacent regarding the varied challenges facing the country's economy. One of our main tasks is to ensure that Ireland remains an attractive place to do business, and to support the development of economic competencies higher up the value chain. In that regard, 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, and promoting tertiary education and lifelong learning, in line with the NDP and the Programme for Government. 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.

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