Employment on increase in financial services

Employment in the manufacturing, internationally traded services and financial services sectors reached 277,924 in 1998, an increase of 5.4 per cent on 1997 levels. According to the latest Forfas Annual Employment Survey for 1998, full-time employment in these sectors increased by a net 14,302 in 1998.

A record 32,000 jobs were created in these sectors, up 4.2 per cent on 1997 levels and the sixth consecutive year of increases in new jobs. However, job losses in the same sectors, at 17,735, were more than 21 per cent higher than in 1997. This was the highest level of job losses since 1993. The rate of increase in job losses was highest in foreign-owned firms at 33 per cent. Forfas attributed this to international market conditions.

Forfas chief executive Mr John Travers attributed jobs growth to "the continuing strength of the Irish economy, the sustained investment in infrastructural development, education and training, an enhanced pro-business policy environment and the effective promotional activity of the state agencies".

Good economic management and social partnership had helped to keep Ireland competitive in international markets, he said. Provided basic competitiveness was maintained, Ireland was well positioned for future employment growth, he forecast, but he warned "strong action" was required to deal with infrastructural problems including transport, housing and telecommunications bottlenecks.

He called for increased investment in education and research and development capabilities and improved planning procedures to ensure competitiveness was maintained. The successful conclusion of a social partnership agreement "could play a positive part in keeping Ireland competitive in the years ahead", he contended.

The Forfas survey found foreign companies generated some 59 per cent, or 8,500, of the net 14,302 increase in jobs with the balance created by Irish companies. Of the total number of 277,924 employed in these sectors at the end of 1998, just over half at 50.5 per cent were employed by Irish-owned companies.

Some 5,558 jobs, or 38.8 per cent, of the 14,302 in employment in 1998 was in the manufacturing sector where a total of 236,235 were employed at the end of 1998, according to the survey. The Forfas survey is further evidence of the strong growth in employment in buoyant economic conditions.

The manufacturing figure compares to total employment of 302,200 in the "other productive industry" category in the quarterly national household survey conducted in November 1998 by the Central Statistics Office. The Forfas survey showed employment in the internationally traded and financial services sector increased by 61.2 per cent with 8,752 more people in work bringing the total to 39,810.

Part-time, temporary or short-term employment in foreign-owned companies increased by 1,400, or 9 per cent. In Irish-owned companies, the increase was 330 jobs, or 2.1 per cent.

During the period 1989 to 1998, overall permanent full-time employment rose by 30.9 per cent, with 65,624 jobs. Employment in foreign-owned companies rose by 46.8 per cent or 43,800. In the same period, employment in Irish-owned has increased by 18.4 per cent, or 21,800. Most jobs growth, particularly in Irish-owned companies, has arisen since 1993.

During the period, employment in manufacturing companies rose by 17.3 per cent with 34,839 jobs. But the increase in employment in internationally traded and financial services companies was much stronger with 29,977 net new jobs, a jump of 305 per cent.

Job losses peaked at 19,232 in 1993. The highest year-on-year decline was recorded in 1994 with a fall of 17.4 per cent. Job losses remained relatively constant from 1994 to 1996, fell again in 1997 (down 7.7 per cent) but rose again in 1998.