Written answers

Thursday, 23 January 2014

Department of Jobs, Enterprise and Innovation

Job Creation Targets

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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106. To ask the Minister for Jobs, Enterprise and Innovation his expectations for the creation of new jobs through indigenous industry, manufacturing and services, in the current year; and if he will make a statement on the matter. [3494/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The manufacturing sector, which had lost 50,000 jobs in the years up to 2010, has seen a modest return to growth in employment over the last few years, with an additional 8,000 jobs having been created in the last year alone. There are now 213,600 people directly employed in the sector in Ireland and when account is taken of indirect jobs supported, it now supports over 427,000 people. The Forfás Strategy for the Manufacturing Sector, which I commissioned and which was published last year, identified that an additional 20,000 jobs can be created in the sector by 2016. A complementary report was also published in relation to skills needs by the Expert Group on Future Skills Needs and Forfás. This will enable the Government to identify key areas and actions that will assist in increasing growth in the sector.

Arising from the Manufacturing Strategy and the Skills Report, there are now a range of initiatives in hand by my Department and relevant Agencies to drive the 2016 target, with key actions from both reports having been incorporated into the Action Plan for Jobs 2012 and 2013 . The Manufacturing Development Forum is helping to address the key issues arising from the Strategy recommendations which include delivering a National Step Change initiative to strengthen Ireland’s manufacturing base across all firms, redressing perceptions of the sector as a career choice and removing barriers to the competitiveness of the sector in Ireland.

We must maintain and exploit our natural advantages and, in doing so, continue to attract Foreign Direct Investment (FDI) and develop our indigenous manufacturing sector, particularly in higher-value sub sectors, for example chemicals, pharmaceuticals, medical devices and food, amongst others.

In relation to the services sector, this accounts for two thirds of total employment within Ireland. While the majority of service firms are not supported by the State, in respect of agency-supported companies, the job creation trend has been very positive. According to the latest figures available, the total net new full-time jobs created in the agency-supported service industry for 2012 was 6,372. This is very positive growth. The Action Plan for Jobs 2013 outlined a range of sectoral initiatives to facilitate new and established services companies to grow, with particular focus on International Financial Services, Business Process Outsourcing/Shared Services, Education Services, Retail and Wholesale, Tourism, Construction Services and ICT Services.

In relation the indigenous sector, in its recent End-of-Year Statement, Enterprise Ireland announced that its client companies created 18,033 new jobs in 2013 – a net increase of 5,442 jobs. These companies now directly and indirectly account for more than 300,000 jobs in the Irish economy equating to 16% of the total workforce.

The challenge for Government is to continue to support companies to build on this success and continue to grow employment in 2014. With this in mind, my officials are currently coordinating the completion of the Action Plan for Jobs 2014. The Action Plan will outline ambitious job targets for the enterprise development agencies and a suite of other measures to support job creation.

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