There has been a net decrease in the number of people employed in companies getting development aid from the State for the third year in succession.
In its 2003 annual report published today, Forfás said that the number of people employed in IDA Ireland, Enterprise Ireland, Shannon Development and Udaras na Gaeltachta supported companies dropped by 7,500 to 297,500.
The job losses were within the manufacturing sector, with computer and electronics firms particularly under pressure.
Other industries under pressure were the textile, paper and printing sectors, which saw significant net decreases in employment.
Mr Martin Cronin, Forfas chief executive, said the job losses reflected the rising cost of doing business in Ireland and increasing competition for investment from cost Asian and central European manufacturers.
Mr Cronin said that "the competitive advantages which have brought this to his point will not be sufficient to provide us with sustained development and success".