Outside analysts told Labour's parliamentary party yesterday to prepare for a dramatic increase in demand for childcare. Experts also said information technology and financial services would be the main areas of economic growth.
ESRI economist John FitzGerald predicted that over the next five years the US economy would adjust to a slower pace of growth, and this would have an effect on the global economy.
He said the newer service businesses that Ireland wished to attract could not be sent to small towns in less economically-developed areas, as encouraged by IDA grants.
Businesses requiring skilled staff in information technology and finance needed to locate in cities. Their staff wanted an urban lifestyle, and employees tended to have spouses and partners who also wanted to work in highly-skilled jobs. They could get these jobs in cities, not small towns.
In relation to childcare, he warned that the gap between supply and demand was going to get worse. The largest age cohort in the population at the moment was aged 20 to 30, and in 10 years these people would have children needing childcare.
Eoin O'Driscoll, chairman of Forfás and the Enterprise Strategy Group, said although Ireland had great success over the last 10 years, policy changes would be required to take account of important factors. Economic globalisation, the growth of the services sector and the increasing importance of knowledge in business were all influencing the direction of economic growth.
Ireland should continue seeking foreign direct investment, but should also concentrate on building a core of indigenous firms with world-class marketing and research and development functions.