IDA Ireland expects to match and may even exceed its 1997 jobs creation target this year, its chief executive, Mr Kieran McGowan, has said. Last year, the IDA, which assists foreign-owned companies investing in Ireland, helped to win 15,170 new jobs, a record for the organisation.
However, Mr McGowan warned that the issue of skills shortages was one which would need to be constantly monitored. He said recent steps by the Government, including allocating £250 million to a fund aimed at increasing the volumes and level of skills in technology from second and third level, had helped the situation.
"We are also trying to find ways of bringing people off the Live Register so that they can become relevant to the workforce," he said in an end-of-year briefing.
Mr McGowan added that the IDA was also trying to expand the workforce through encouraging emigrants to return to Ireland to take up employment.
The net increase in jobs - once job losses are subtracted - was 8,950. It would have been almost 1,000 more had the Seagate plant in Clonmel not closed before Christmas. The IDA said yesterday that, even with the Seagate losses, the number of jobs created last year was significantly stronger than in any previous year.
Mr McGowan said that at least two-thirds of the jobs created in 1998 would be created through companies already located in Ireland. The information technology sector created more than half of all new jobs (8,000). Services, including financial services, created almost one-third of all new jobs. The IDA also reported strong performance in the healthcare/chemicals sector, adding 1,500 new jobs.
The number of jobs created in 1997 was nearly double the number of jobs created the previous year. It brings to 50,000 the number of jobs created by overseas companies since 1994. The IDA said yesterday that overseas firms assisted by them now employ 107,600 people. The IDA also reported an increase in temporary employment, jobs which are not grant aided. It accounted for 13,400 jobs last year, compared to 9,700 jobs in 1996.
In line with the jobs increases, total annual sales, mainly exports, by IDA-supported companies have grown by nearly 17 per cent, to £18.5 billion. These companies spent almost £7 billion last year. "These figures reflect the unprecedented and strong performance of overseas companies in Ireland and their critical contribution to the positive growth of the Irish economy during the year," the IDA said.
Mr McGowan stressed that Ireland's low tax regime was one of its most important competitive features. He said the estimated corporation tax revenues from IDA client companies would be in excess of £600 million this year, up more than 15 per cent on 1997.
The figures released by the IDA showed that, with the exception of the north-west/Donegal, total employment grew in all regions last year, compared to 1996.
Not surprisingly, the east of the State showed the biggest growth, at almost 20 per cent, or almost 9,000 new jobs. The west experienced 9.5 per cent growth. Overall, employment in all regions grew by 10.2 per cent.
All regions also suffered some job losses. Aside from Seagate, where closures will not take effect until this year, Asahi in Killala, Co Mayo, ranked as one of the biggest in terms of job losses when it closed with the loss of 316 jobs.
Klopman in Tralee, a textiles company, closed with loss of 130 jobs. Schiesser International, another textiles company in Carrick-on-Suir, Co Tipperary, closed with 110 jobs. Wellmann, another textiles firm in Co Cavan, radically reduced its workforce, by 100 people.
Sea Ray boats in Cork closed with the loss of 110 jobs. Neodata, a mail order company in Listowel, Co Kerry, closed with the loss of more than 100 jobs.
In the electronics sector, Microsoft laid off 150 in Sandyford, Dublin as part of a restructuring process. Bourns Electronics in Cork laid off more than 130 people as part of its reorganisation. AST in Limerick laid off 130 in first half of the year. Fruit of the Loom in Donegal laid off more than 100 people.
