Category: Archive

Enterprise Ireland, IDA report jump in job losses

February 16, 2011

By Staff Reporter

Also, there was a 2.2 percent fall in the number of people employed in foreign-owned industries last year, according to end-of-year figures published by the Industrial Development Authority.
The report, released last Thursday at the Shelbourne Hotel in Dublin, says 12,300 jobs were created by companies supported by Enterprise Ireland, but that more than 16,300 were lost as a result of closures and shrinking markets.
It would be “unreal and dishonest” to pretend there would not be further job losses and company closures in the next 12 months, according to the agency’s chief executive, Dan Flinter.
“2002 has been the most difficult year for Irish companies in the last 10 years and trading conditions in our key markets will continue to represent a serious challenge,” Flinter said.
“The focus for Enterprise Ireland in the coming 12 months is on actions that will deliver immediate benefits to our clients in difficult trading conditions.”
Flinter said the “pipeline” for new start-ups has strengthened during the second half of 2002, partly as a result of intensive efforts in promoting and supporting entrepreneurial activity.
“We anticipate that Enterprise Ireland will invest in, and actively support, at least 60 new start-ups with significant export growth potential in 2003, up 20 percent on 2002.”
About a quarter of last year’s jobs losses were related the closure of about 100 companies out of a total Enterprise Ireland client base of more than 3,000. The other 75 percent of jobs losses were the result of layoffs by shrinking companies that are still operating.
They had contracted because of competitiveness problems in international markets and a shrinking market.
During 2002, exports by Irish businesses increased by an estimated 2 percent to about euro 11.8 billion and productivity increased by 5 percent.
The Irish-owned business sector has a major impact on the economy and accounts for euro 11 billion in exports representing 45 percent of output and 51 percent of total industrial employment.
Meanwhile, the IDA, the state-funded jobs-promotion body supported companies that created 11,700 jobs in 2002 but there were 14,700 jobs losses in other IDA-backed industries.
IDA chief executive Sean Dorgan said he was “cautiously optimistic” for 2003.
“There is a brighter future ahead in 2003 for inward investment than there has been for two years,” he said. “Despite the turbulent global conditions in 2002 the year shaped up better than expected, with a last quarter boost in new projects secured by IDA and a strengthening pipeline of investments in negotiation for the first quarter 2003.”
In 2001, the IDA also recorded a 2.7 percent drop in employment in the industries it supports — its first for 15 years.
Announcing preliminary results for last year, Dorgan said 133,084 people now have jobs in 1,098 IDA-backed industries.
The agency paid out euro 116 million in grants last year for expansions and greefield projects.
The number of new investments secured in 2002 was up by two-thirds on the previous year.
He said 55 new projects in manufacturing and international services were negotiated by the agency compared to 33 in 2001.
“These projects are committed to creating 8,700 new jobs as they come on stream over the next few years.”
Employment growth had been exceptionally strong in the pharmaceutical/healthcare sectors with job numbers rising by 3.8 percent.
In the information and communications technology sector the international downturn led to a job losses of 5 percent.
Sales from IDA-supported companies now total euro 65 billion, with exports valued at euro 60 billions.

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