Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 129: To ask the Minister for Enterprise, Trade and Employment the number of jobs created in the past 12 months; the number lost in the same period in both the manufacturing and service sectors; and if he will make a statement on the matter. [8675/08]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Over the last number of years there has been a significant churn in employment as is typical of a developed, open, and dynamic economy such as Ireland's. Ireland is no longer a low cost economy and manufacturers in particular are facing increased competition from producers in lower cost economies. Other sectors, especially the services sector, are providing significant new employment opportunities. Since 1997, over half a million new jobs were created in Ireland and the number in employment now exceeds 2.1 million.

Despite the manufacturing sector in Ireland experiencing a decline in employment in line with most developed OECD economies, it has achieved very significant increases in output, reflecting growing productivity in the sector. Nonetheless the Government is aware of the importance of the manufacturing sector to the Irish economy and the need to address the challenges it faces, if it is to continue to play a major role in the economy.

The following Table lists the number of Enterprise Agency assisted (Enterprise Ireland, IDA, Shannon Development and Údarás na Gaeltachta) full-time jobs lost and gained per sector in 2007. 13,925 full-time manufacturing jobs were created in enterprise agency-assisted firms, however these gains were offset by losses of 16,855. In the services sector 11,430 jobs were created, while 7,385 jobs were lost; giving a net gain in service sector jobs of 4,045. Overall there was a net gain of 1,115 in enterprise agency-assisted jobs. In addition the County Education Boards created 2,200 net new jobs.

As part of the commitments included under the partnership agreement 'Towards 2016', I established a high-level group in manufacturing, to review the challenges facing the manufacturing sector and to identify further measures to meet those challenges. This Group, comprised of Industry, Employee, Government and Enterprise Agency representatives, is currently in the process of finalising a report outlining their views and recommendations to ensure that manufacturing continues to play a major role in our economy and will report back to Partnership shortly.

To compliment the work ongoing in the High Level Group on Manufacturing, Forfás have established a group to look at the challenges and opportunities faced by the services sector. From this group we hope to prepare and position Irish enterprise to adapt to the globalisation of services with the aim of achieving sustainable and competitive services enterprise in Ireland based on three strategic imperatives:

Increasing Ireland's services export base;

Growing a cadre of Irish services companies that can expand into international markets (Overseas Direct Investment); and

Developing productive and competitive locally traded services including their globalisation potential.

A report outlining how to maximise the future returns to Ireland from services activities in all enterprises, both current and potential, is due to be completed in the near future.