THE education system needs to do more to produce young people equipped with the technology and language skills required by modern employers, according to the chief executive of the IDA, Mr Kieran McGowan.

Launching his organisation's annual report yesterday, Mr McGowan pointed out that in spite of high levels of unemployment, skills shortages still existed in specific areas, notably software and semiconductor engineering.

Further manpower shortages would arise, he warned, unless the education and training system rose to the "serious challenge" of adapting to the needs of employers.

However, some progress had been made over the past year in discussions with the Department of Education, the universities and other education institutions. As a result, 1,200 out of 6,000 additional university places to be created over the next five years will be in the software and electronics areas.

In addition, 700 young people are to be recruited for language training courses run by FAS to meet the mushrooming market for jobs in telemarketing. University graduates with language qualifications have largely shunned this type of, work as insufficiently challenging.

The IDA is also pressing for the expansion of conversion courses at post Leaving Certificate level, which would equip young people with skills which are currently in demand, such as business and German.

Persuading parents to encourage their children to study technological subjects remained a big challenge, he conceded. "There's still a tendency to regard IDA created jobs as factory based when, in fact, more and more of them are being created in an office environment."