FORFAS, the umbrella body for the State's two job creation agencies, IDA Ireland and Forbairt, has called for Government action to improve the competitiveness of Irish industry.
Calling for "effective action" particularly to assist industries exporting to Britain, Forfas chief executive, Mr John Travers yesterday urged the Government not to be complacent in its support for Irish industry.
Presenting its annual review Mr Travers, warned that the potential that exists for job creation, higher living standards and lower unemployment in the Irish economy will be lost if Irish companies are unable to compete in international markets.
Tighter control of the public finances, improvements in infrastructure and greater efficiency of utilities and services, are now necessary to underpin strong economic growth and support job creation, he said.
"Maintaining competitiveness, let alone improving it, will require continued rapid progress across these areas," Mr Travers said.
Other challenges, such as Ireland's high unemployment rate must also be faced, he said if strong economic growth is to translate into better living standards, particularly for the long term unemployed.
In a record year for job creation, the review shows that more than 17,000 new jobs were created in companies supported by the State's various job creation agencies last year.
When adjusted for job losses, the number of full time permanent jobs in the Irish economy rose by a 8,700 in 1995.
Overseas owned companies, working with the support of IDA Ireland, accounted for the biggest net increase with 6,600 new jobs over the one month period. Indigenous companies, supported by Forbairt created 2,100 additional jobs.
The figures shows the international and financial services sector remained the fastest growing sector with 3,185 full time jobs created in 1995. Some 23,900 jobs in this sector are supported by the both Forbairt and IDA Ireland.
The review also shows a growing trend towards temporary, part time and short term contract employment with around 3,100 of these jobs created in 1995.
The average cost per job to the State last year fell last year, with the figures indicating an average cost of £10,923 compared with £11,694 in 1994. In the services sector, it estimates the average cost per job was £8,554, while in the manufacturing sector it ran to £11,692.
Other figures show that companies supported by the two State job creation agencies spent up to £16.4 billion in the Irish economy last year.
While confident that strong growth in employment will continue in 1996, Forfas, which chaired by Mr Tom Toner, has warned that insufficient emphasis is being placed on the potential for job creation within the services sector.
With over 80 per cent of all new jobs over the next 10 years expected from this sector of the economy, it is concerned that high levels of taxation and inadequate emphasis on the development of language skills will constrain further growth.
