Bernard Durkan (Kildare North, Fine Gael)
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174. To ask the Minister for Enterprise, Trade and Employment the extent to which the services and manufacturing services have improved and recovered, given the existence of the pandemic; and if he will make a statement on the matter. [23497/24]

Peter Burke (Longford-Westmeath, Fine Gael)
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My Department continues to monitor challenges to the manufacturing and services sectors of the economy. Despite the economic challenges posed by the pandemic, the services and manufacturing sectors have proved resilient, along with the Irish economy at large. With an unemployment rate of 4.4% in April, the Irish economy is operating at a level close to full employment. The risks to employment will depend on the risks to the economy, more broadly. Real GDP growth is projected to be 2.6% in 2024 and 3.9% in 2025, according to forecasts in the Stability Programme Update (SPU) 2024. The SPU also notes that the economy has likely passed it’s cyclical peak, with the growth rate expected to moderate over the medium term. As a small open economy, we must be vigilant of the risks that external factors pose, such as geopolitical events or a general worsening in global economic conditions.

Manufacturing is a critically important sector of the Irish economy, with clusters of world class manufacturing operations in areas such as biopharmaceuticals, engineering, medical technology, building materials, and food production. He latest Labour Force Survey data shows that there are 320,400 people employed in the industry sector as of Q4 2023, a substantial increase over the 288,300 people employed in the sector in Q4 2019, just before the start of the pandemic.

In terms of Gross Value Added, the rate of annual growth in the industry sector stands at 9.4% for Q4 2023, a decline from the 31% year-on-year growth for Q3 2023 but equal to pre-pandemic levels of 9.4% in Q4 of 2019. In the manufacturing sector specifically, the most recent data available demonstrates the sector added over €192 million in gross value in 2022, an over 70% increase from 2019 when the sector added €112 million in gross value.

Recent CSO data on industrial production and turnover in manufacturing industries shows growth for 2023 relative to 2019 (the pre pandemic baseline) of 64% and 43%.

The services sector – the largest sector by employment in Ireland – employs over 2.1 million people as of Q4 2023. This is substantially higher than pre-pandemic levels, with 1.8 million people employed in Q4 2019. In the wholesale and retail trade and accommodation and food service sub-sectors, employment levels have increased from 311,500 and 180,800 people in Q4 2019 to 343,800 and 183,100 people respectively. Administrative and support service activities have seen a decline in employment levels over the same period, going from 112,100 people employed to 106,500. In terms of yearly gross value-added growth, the wholesale and retail sector grew 2.1% year-on-year in Q4 of 2023, down from 7% in Q4 of 2019. The accommodation and food beverage sector added 2.2% in year-on-year gross value-added growth, a substantial increase from Q4 2019 when gross value added declined 12.8% year-on-year. Administrative and support service activities experienced a yearly gross value-added decrease in Q4 of 2023 of 7.3%, in Q4 of 2019 the same sector added 5.3% in gross value added.

My Department continues to monitor developments and risks in sectoral economic activity, while pursuing pro-enterprise and pro-competitive policies. Published in December 2022, the White Paper on Enterprise 2022-2030 sets out Ireland`s industrial policy for the medium- to long-term, building on Ireland's strengths of an open economy with strong trade and foreign direct investment, a vibrant innovation hub, and a resilient labour market. This review of Enterprise Policy was motivated by an awareness of a changing enterprise landscape posing new challenges, including shifting patterns of globalisation driven by geopolitical change, disruptive technological innovation, and lagging productivity in parts of the indigenous sector of the economy.

Bernard Durkan (Kildare North, Fine Gael)
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175. To ask the Minister for Enterprise, Trade and Employment the extent to which the job retention and creation effort continues to be made in the manufacturing sector throughout Ireland and in County Kildare; and if he will make a statement on the matter. [23499/24]

Peter Burke (Longford-Westmeath, Fine Gael)
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The Irish manufacturing sector, both FDI and Irish-owned, has performed strongly in recent years and has successfully weathered several shocks in recent years, including Brexit, Covid and the disruption caused by Russia’s invasion of Ukraine.

According to the most recent employment figures from the CSO’s Labour Force Survey, total employment in industry- including manufacturing industry- across the country stood at 320,400 people in the fourth quarter of 2023. This represents an increase of 11%, or an additional 32,500 jobs, compared to the same period in 2019, when total employment in industry stood at 290,000.

Census 2022 provides more detailed information on employment in manufacturing industry in particular, and shows that in 2022, there were 242,857 people working in manufacturing in Ireland, representing a gain of 41,542 jobs since 2016, an increase of 21%. The Census also shows that this national pattern of manufacturing job growth is fully reflected in Mid-East region, including County Kildare, which saw the number of manufacturing jobs increase by 5,288 from 27,624 in 2016 to 32,912 in 2022, an increase of 19%.

These figures demonstrate not only the resilience of our enterprise sector but also the success of Government policies aimed at creating an attractive environment for both indigenous enterprise and foreign direct investment and enhancing the availability of talent to employers.

Agencies under the auspices of my Department are playing a vital role in developing this attractive business environment and strong value proposition which enables global and local companies- including those engaged in manufacturing, to invest and expand successfully in all parts of Ireland.

For example, FDI performance in the Mid-East region has been consistent over the past five years with employment among IDA clients increasing by 14%. The Mid-East has a significant ecosystem of well-established companies across Technology, Life Sciences, International Financial Services and Engineering & Industrial Technologies.

Enterprise Ireland meanwhile made payments of €4,317,913 to client companies in County Kildare in 2023, and an additional €235,785 towards infrastructural investments. This investment has coincided with employment growth of 1.3% during 2023 for Enterprise Ireland supported companies in the county, with 555 jobs created. Total employment among Enterprise Ireland’s 158 supported clients stood at 9,315 in County Kildare in 2023.

Enterprise Ireland is committed to supporting job retention and creation in the manufacturing sector throughout Ireland, including County Kildare, and Enterprise Ireland continues to work towards enhancing the significant contribution to growing and maintaining quality jobs in every region and county in Ireland with a focus on innovation, digitalisation, sustainability, and regional development.

IDA and Enterprise Ireland announcements in Kildare over last two years include:

• Intel Ireland, Sep 2023: Intel’s Fab 34 officially opened at their Leixlip campus as they begin deploying the first at scale production using Intel 4 technology, and Intel’s first use of extreme ultraviolet technology in Europe. This Leixlip facility will lead to a doubling of Intel’s manufacturing space in Ireland, resulting in 1,600 Jobs created in Leixlip.
• Diageo, July 2022: The first purpose-built carbon neutral brewery, representing a €200 million investment creating 50 jobs in Newbridge.
• KDP June 2022: Keurig Dr Pepper’s celebrated the opening of its International Operations Hub in Newbridge which created 20 new jobs, bringing to 100 the total on site.
• MGS Manufacturing Group, April 2022: Global provider of healthcare manufacturing solutions MGS committed €7m investment with 20,000ft expansion of plant located on Kildare Innovation Campus, creating 100 Jobs in Leixlip