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

178. To ask the Minister for Enterprise, Trade and Employment the extent to which the level of investment in jobs here continues to keep pace with other jurisdictions; and if he will make a statement on the matter. [23502/24]

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Last February, my Department published the Annual Employment Survey 2023, an annual survey which provides an analysis of employment levels in industrial (including primary production) and services companies under the remit of IDA Ireland, Enterprise Ireland and Údarás na Gaeltachta. In that regard, the 2023 survey found that jobs in client companies of Government enterprise development agencies are now at their highest ever level, at over 535,604 jobs. This represented a 0.8% increase on 2022 figures.

My Department also co-ordinates the Annual Business Survey of Economic Impact (ABSEI) of the client companies of the enterprise development agencies, and the ABSEI 2022 report, published in February 2024, showed the level of direct expenditure in the Irish economy by foreign-owned agency client companies was €38.1 billion and €35.9 billion for Irish-owned agency client companies. These figures attest to Ireland’s strong platform for continuing economic growth.

Expenditure within the economy by FDI companies increased during 2022 despite the prevailing challenging conditions. Payroll was up 12% to €22.1bn, Irish services and materials spend increased by 15.7% to €13.8bn, and capital expenditure was up 49% to €15.5bn. Exports of €383.1bn represented an increase of 11.2% year-on-year.

FDI has experienced a decade of record growth based on successful targeting of a diverse but discrete range of sectors. Given the consistent growth of these sectors over the medium-term, they have, overtime, become the subject of ever more intense competition as countries seek to leverage FDI to drive economic recovery and growth.

There are now almost 1,800 client operations in IDA’s portfolio of MNCs who have chosen Ireland as a place to grow and succeed, with one-third of client operations in Ireland for 20 years or more. IDA Ireland continues to work with its client companies to support their drive for competitiveness.

Transformation focused on research development and innovation, sustainability, digitalisation and talent development is critical to remaining competitive, reflected in IDA’s partnerships and conversations with client companies and stakeholders.

For decades, Ireland’s talent base has made the country a prime destination for many of the world’s top companies. Today, around 55% of people aged 25 to 34 in Ireland hold a third-level degree compared to a 40% EU average. In addition to its highly educated and skilled workforce, Ireland offers access to the larger – some 250 million strong - EU workforce. This is reflected in the strong job creation results reported by the agencies.

In particular, Ireland has developed a reputation for excellence in sectors like Pharma, Med Tech, Technology and Financial Services with many of the top global companies in these fields located and operating very successfully here, many with considerable longevity.

The fundamentals of what investors are looking for in seeking to internationalise haven’t changed and are unlikely to change. They look for stability, consistency, and a talented workforce. Ireland offers that and our value proposition remains strong, albeit there are domestic carrying capacity challenges that we must work on as set out in the Government's White Paper on Enterprise and the attendant biennial Implementation Plans. Through White Paper implementation, Ireland will be best positioned to keep pace with our competitors chasing FDI, with recent international reports noting that for a variety of reasons there is currently a reduction in the amount of FDI globally.