IDA Reports Decline In Net Job Gains

19 Jan 2018 | 04.24 pm

IDA Reports Decline In Net Job Gains

PAC criticises agency's job count methodology

19 Jan 2018 | 04.24 pm

The number of jobs added by foreign-owned companies in Ireland reached almost 20,000 through 2017, but a sharp jump in the number of layoffs in IDA-supported companies meant that the net jobs gain was down on the 2016 total.

According to figures published by IDA Ireland, employment levels in foreign owned companies in Ireland amounted to  210,440 jobs at the end of 2017. The net gain through the year was 10,680, down from the 2016 net gain figure of 11,840. 

IDA client companies added 19,850 job in 2017. These gains were offset by job losses among IDA client firms amounting to 9,170. The job losses figure was substantially higher than the 6,790 job losses figure recorded in 2016.

Sean Fleming TD, chairman of the Public Accounts Committee, commented that the Committee “is not assured of the adequacy of the methodology” used by the IDA to verify the number of jobs created by their client companies.

“The Committee is of the view that the use of an annual self-assessment survey does not provide sufficient reassurance or clarity in relation to accuracy of numbers of jobs created,” said Fleming. “The Committee recommends that the IDA develops a more robust methodology for verifying the number of jobs, and reduce the current dependency on self-assessment.”

IDA Ireland’s taxpayer funded budget for 2017 was €176,264,000, and for 2018 the agency has been allocated €180,780,000 for overheads and undisclosed grants. On the basis of the net job gain figure of 10,680 in 2017, the taxpayer subsidy for each of those net new jobs was effectively €16,500.

The number of investments secured by IDA during 2017 was 237, with new-name investments up from 99 to 111. Among the leading investments secured this year were: 

• Element Six in Shannon, Co Clare announced the creation of an additional 100 jobs in the areas of supply chain, engineering and manufacturing, with recruitment already underway and all posts set to be filled in the first half of this year

• Mercury Filmworks in Kilkenny announced it has joined forces with acclaimed Kilkenny-based animation studio Cartoon Saloon to create an all-new 2D-focused animation studio in Ireland, Lighthouse Studio which will create over 140 jobs

• Indeed.com, the world’s largest job site, announced expansion plans for its Dublin-based headquarters for Europe, the Middle East and Africa (EMEA), adding 500 new employees over the next two years

• Microsoft announced it will add 800 new jobs at its Dublin based EMEA Inside Sales organisation

• Mobile Technologies Inc is to hire 150 people in its newly established European Contact Centre Headquarters in Drogheda

• BorgWarner announced it is to add a new production line for Electric Vehicle Technology and create 50 new jobs in Tralee, Co Kerry

• MSD announced 330 new jobs to be created in Carlow and Cork, and invest €280m to expand production facilities

• Northern Trust will add up to 400 new jobs in Limerick

• Graebel Companies Inc announced it is to create 125 new jobs in a EMEA Financial Shared Services and Operations Centre in Dundalk, Co Louth

• KBRA credit ratings agency, selected Dublin for European Headquarters and will create 100 jobs

• Janssen Sciences Ireland announced an expansion of its Ringaskiddy facility. The expansion plans involve an investment of more than €300m and will create 200 new jobs

• Wasdell Group to establish Pharmaceutical Packaging & Distribution Facility in Dundalk, Co Louth, creating 300 jobs over five years

• Beckman Coulter, which develops, manufactures and markets products that simplify, automate and innovate complex biomedical testing, is expanding the company’s development and manufacturing facility at Lismeehan, Co Clare, creating 70 jobs over the next two to three years

• National Pen, a global provider of personalised marketing merchandise, celebrated its 30th anniversary in Dundalk and announced that it will add 250 new jobs

• S&P Global Ratings announced it has chosen Dublin as a post-Brexit European hub

• Travelers Europe announced it is to create a European subsidiary in Dublin in response to Brexit.

 

Photo: Business minister Heather Humpreys with IDA Ireland chairman Frank Ryan (left) and CEO Martin Shanahan. (Pic: Leah Farrell / RollingNews.ie)

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