Annual Employment Survey 2005

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ANNUAL

EMPLOYMENT SURVEY

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Executive Summary

Context:

The Irish economy continued to perform very well in 2005. GNP is estimated to have grown by 5.0 per cent in 2005 compared with an OECD average of 2.7 per cent. Total employment in the Irish economy reached 1.99 million in the third quarter of 2005 with an annual increase of 96,200 in the year, and by the end of the year is likely to have exceeded two million for the first time.

Unemployment was at 4.3 per cent as of third quarter of 2005, the second lowest rate among OECD countries after New Zealand.

Employment is only one of the indicators that can be used to monitor the performance of agency assisted companies. The economic impact of the companies supported by development agencies goes well beyond direct employment creation. In economies like Ireland which have full

employment levels, other performance measures such as total sales, exports, R&D expenditure and economy expenditures must be taken into account in conjunction with developments in employment levels.

Expenditure in the economy – on local services, raw materials and payroll – by agency assisted companies totalled €34.2 billion in 2004 (latest data available), up from €33.9 billion a year earlier, with both manufacturing and internationally traded services firms contributing to the increase. Irish-owned companies accounted for €16.2 billion (47 per cent) of the direct expenditure with raw material inputs accounting for the largest share – driven largely by the food and drink sector which purchases most of its raw material inputs domestically. Foreign-owned companies spent around €18.0 billion directly in the economy and this expenditure was spread quite evenly across payroll costs, raw materials purchases and services purchased in Ireland.

Total exports of agency assisted companies in manufacturing and internationally traded services amounted to €85.9bn in 2004, with foreign owned companies accounting for €76.5bn (90 per cent) of this total, with the remaining €9.4bn accounted for by Irish-owned companies. Manufacturing sectors accounted for €61.6bn (72 per cent) of total exports and €24.3bn comes from the

internationally traded services sectors.

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Survey Results

The Annual Employment Survey provides an analysis of employment levels in manufacturing and internationally traded services companies under the remit of IDA Ireland, Enterprise Ireland, Shannon Development and Údarás na Gaeltachta.1_{The main findings of the 2005 survey are set out}

below.

Overall

Total permanent full-time employment in agency-assisted companies operating in the

manufacturing or internationally traded services sectors amounted to 298,372 in 2005, an increase of 2,879 jobs on employment levels in 2004. This is the highest level of net job creation since 2000, the peak year for permanent full time employment among agency assisted companies.

Total full-time employment among Irish-owned companies amounted to 147,638 in 2005, an

increase of 1,269 on the previous year. Employment among Irish-owned companies is 22,072 or 17.6 per cent higher than it was in 1996.

Among Foreign-owned companies, total full-time employment amounted to 150,689 in 2005, an

increase of 1,610 on the previous year. Employment among foreign-owned companies has increased by 29,944 or 24.8 per cent since 1996.

Sectoral

The sectoral employment breakdown shows evidence of continuing structural change in Irish industry in contrast to continuing volume growth in manufacturing sectors. Employment in

manufacturing companies fell for the 5th successive year to 215,686, down 12 percent from its 2000 peak. Net job losses in 2005 were concentrated in traditional manufacturing sectors such as the food products and beverages (-1,350), non-metallic minerals (-889) and paper, publishing and printing (-502), reflecting on-going restructuring and competition from lower-cost locations.

There were net job increases in more modern sectors such as electrical and optical equipment (including medical devices) (+2,042) and chemicals (including pharmaceuticals) (+286).

Net job losses in manufacturing in 2005 were more than offset by net job gains in the

internationally-traded services sector, which comprises financial services and international services. Total employment in this sector increased to 71,296 in 2005 (up 2,441), accounting for 24 per cent of all jobs in agency-supported companies in 2005, compared with just 10 per cent in 1996. Net job creation was highest in international services (+1,702), with the increase largely accounted for by

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firms in consulting, software and other computer-related services. Employment in the

“Mining/Quarrying and Other Services” increased by 854 from 10,536 in 2004 to 11,390 in 2005.

Regional

Agency assisted companies located in the South and East (S&E) region accounted for 224,305 (75.2 per cent) of total full time employment, with the Border, Midlands and West (BMW) regions accounting for the remaining 74,067 (24.8 per cent). The BMW regions accounted for around 28 per cent of the gross job gains across the agency assisted companies in 2005, compared to 25 per cent in 2004 and 20 per cent in 2000 (the peak of employment in agency-assisted companies).

Irish-owned manufacturing and internationally traded services firms located in the S&E

accounted for 104,191 (70.6 per cent) of total full-time employment among indigenous companies in 2005 as opposed to 89,328 (71.1 percent) in 1996. In overall terms, the BMW region accounted for 36,283 (28.9 per cent) of indigenous employment in 1996, and while this had declined to 27.0 per cent in 2000, it has risen again in recent years and stood at 29.4 per cent at the end of 2005.

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Introduction

This document sets out the final results of the 2005 Annual Employment Survey2_{. The survey is an}

annual census of employment in all manufacturing and internationally traded services companies supported by the enterprise development agencies (IDA Ireland, Enterprise Ireland, Shannon Development and Údarás na Gaeltachta). The survey has been carried out each year since 1973. Forfás, in line with its mandate to co-ordinate the activities of Enterprise Ireland and IDA Ireland, continues to carry out the survey with the co-operation of Enterprise Ireland and IDA Ireland regional staff. Shannon Development and Údarás na Gaeltachta carry out the survey for companies falling within their remit and provide the results for inclusion in the Forfás database.

The structure of the main body of the report is as follows: Section 1 provides overall employment trends in manufacturing and internationally-traded services and the results are broken down on the basis of Irish and foreign-ownership. Data on part-time, temporary and short-term contract

employment are also provided for companies within the remit of Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta. Shannon Development does not currently collect data on these

‘non-permanent’ forms of employment. Section 2 provides a regional analysis of permanent full-time employment and Section 3 analyses the same data on the basis of industry sector.

It should be noted that employment figures in this document may differ from those previously reported due to factors such as the inclusion of new companies, revisions made by companies during the survey or the transfer of companies between Irish and foreign ownership at the end of each survey year.

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1. EMPLOYMENT TRENDS 1996-2005

Chart 1: Trends in Permanent Full-time Employment in Agency Assisted Companies, 1996-2005

50,000 100,000 150,000 200,000 250,000 300,000 350,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

All Ownership Foreign Irish

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Overall Total 246,356 262,335 276,806 293,420 317,173 313,681 304,821 296,507 295,493 298,372

Irish-owned 125,611 131,510 136,552 143,326 151,712 152,966 150,030 147,426 146,414 147,683

Foreign-owned 120,745 130,825 140,254 150,094 165,461 160,715 154,791 149,081 149,079 150,689

Total permanent full-time employment in agency-assisted companies operating in the

manufacturing or internationally traded services sectors amounted to 298,372 in 2005, an increase of 2,879 jobs on employment levels in 2004.

Total full-time employment among Irish-owned companies amounted to 147,683 in 2005, an

increase of 1,269 on the previous year. This is the first year in which the indigenous enterprise base has experienced an increase in employment levels since 2001. Employment among Irish-owned companies is now 22,072 or 17.6 per cent higher than it was in 1996.

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Chart 2: Trends in Part-time, Temporary and Short-term Contract Employment in Agency Assisted Companies, 1996-20053

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 199 6 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Overall Total 26,242 30,983 32,658 34,413 36,158 33,049 33,132 34,279 36,822 36,156

Irish-owned 15,029 15,482 15,815 17,263 18,916 18,991 19,262 18,018 17,750 17,617

Foreign-owned 11,213 15,501 16,843 17,150 17,242 14,058 13,870 16,261 19,072 18,539

In addition to permanent full-time employment, there were a further 36,156 jobs of a temporary or part-time nature recorded in agency-assisted companies in 20054_{. This represents a decrease of 666}

on the previous year and an increase of 9,914 (or 37.8 per cent) on the number engaged in 1996.

Among Irish-owned companies, there was a drop in temporary and part-time employment of 133 in 2005. The current level of 17,617 is 2,588 (or 17.2 per cent) higher than in 1996 when such

employment amounted to 15,029.

Employment of a temporary or part-time nature among Foreign-owned companies amounted to 18,539 in 2005, a decrease of 533 on the previous year. Examining the trends between 1996 and 2005, this represents an increase of 7,326 (65 per cent) over the period.

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Excludes companies under the remit of Shannon Development.

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Chart 3: Trends in Permanent Full-time Employment by Sector in Agency Assisted Companies, 1996-2005

50,000 100,000 150,000 200,000 250,000 300,000 350,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

All Sectors Manufacturing Financial and Intn. services Other

_{1996 1997 1998 1999 2000 2001 2002 2003 2004 2005}

Overall Total 246,356 262,335 276,806 293,420 317,173 313,681 304,821 296,507 295,493 298,372

Manufacturing 214,955 223,994 229,134 234,582 244,651 236,857 227,629 219,534 216,102 215,686

Internationally

Traded Services 24,539 31,049 39,844 50,526 63,377 66,891 67,240 66,773 68,855 71,296

Mining/Quarrying

and Other Services 6,862 7,292 7,828 8,312 9,145 9,933 9,952 10,200 10,536 11,390

The table segments permanent full-time employment into three broad sectoral categories: manufacturing, internationally- traded services, and a residual element of mining, quarrying and other services.

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Permanent full-time employment in internationally traded and financial services grew from 24,539 in 1996 to 71,296 in 2005, an increase of 190 per cent over the period. This has helped offset all of the losses in the manufacturing sector since 2000.

Chart 4: Trends in Part-time, Temporary and Short-term Contract Employment in Agency Assisted Companies 1996-20055

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 199 6 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5

All Sectors Manufacturing Financial and intn. Services Other

_{1996 1997 1998 1999 2000 2001 2002 2003 2004 2005}

Overall Total 26,242 30,983 32,658 34,413 36,158 33,049 33,132 34,279 36,822 36,156

Manufacturing 19,699 23,347 23,725 24,826 25,691 22,348 22,175 21,983 22,698 22,472

Internationally

Traded Services 3,399 4,223 5,913 6,029 6,340 6,571 6,893 8,158 9,668 9,215

Mining/Quarrying

and Other Services 3,144 3,413 3,020 3,558 4,127 4,130 4,064 4,138 4,456 4,469

The table and accompanying chart document trends in temporary and part-time employment on the basis of manufacturing, internationally traded services, and a residual mining, quarrying and other services category.

Within manufacturing sectors, temporary and part-time employment grew from 19,699 in 1996 to 25,691 in 2000. Although the years 2001-2003 were characterised by annual declines in employment levels, 2004 has witnessed gains of approximately 715 jobs in this sector and in 2005 there was slight decline of 226 jobs.

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Temporary and part-time employment within internationally traded services sectors has increased in almost each year of the period examined, growing from 3,399 in 1996 to a peak of 9,668 in 2004 and declined by 453 in 2005.

Chart 5: Trends in Permanent and Part-time Employment in Agency Assisted Companies, 1996-20056

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Permanent Jobs Other Jobs All Jobs

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

All Jobs 272,598 293,318 309,464 327,833 353,331 346,730 337,953 330,786 332,315 334,528

Permanent

Jobs 246,356 262,335 276,806 293,420 317,173 313,681 304,821 296,507 295,493 298,372 Other Jobs 26,242 30,983 32,658 34,413 36,158 33,049 33,132 34,279 36,822 36,156

Chart 5 provides an overview of permanent full-time employment and temporary/part-time employment within agency assisted companies over the period 1996-2005. Taken in conjunction, these two categories of employment give an overall total of 334,528 jobs in agency assisted firms in 2005.

Temporary and part-time jobs accounted for 10.8 per cent of total employment in 2005, increasing from 9.6 per cent share recorded in 1996.

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Chart 6: Trends in Permanent Full-time Employment in Manufacturing Sectors in Agency Assisted Companies, 1996-2005

50,000 100,000 150,000 200,000 250,000 300,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Overall Total 214,955 223,994 229,134 234,582 244,651 236,857 227,629 219,534 216,102 215,686

Foreign-owned 103,043 108,688 111,603 114,859 122,628 116,077 110,158 104,097 102,690 102,493

Irish-owned 111,912 115,306 117,531 119,723 122,023 120,780 117,471 115,437 113,412 113,193

Chart 6 summarises trends in permanent full-time employment within manufacturing sectors only and presents these data by ownership breakdown.

Indigenous manufacturing employment grew from 111,912 in 1996 to a peak of 122,023 in 2000 and has declined in each year since then to its current level of 113,193. Although this represents a net decrease of 8,830 on its peak in 2000, permanent full-time employment within Irish-owned

manufacturing companies is still some 1,281 higher than it was in 1996. In addition we see a slow down in the decline in employment levels among Irish owned companies in manufacturing sectors since 2002.

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Chart 7: Trends in Permanent Full-time Employment in Internationally Traded Services in Agency Assisted Companies, 1996-2005

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

All Ownership Irish Foreign Financial Services Component

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

All Ownership 24,539 31,049 39,844 50,526 63,377 66,891 67,240 66,773 68,855 71,296

Irish 8,033 10,259 12,561 16,538 22,113 24,020 24,247 23,410 23,853 24,605

Foreign 16,506 20,790 27,283 33,988 41,264 42,871 42,993 43,363 45,002 46,691 Financial

Services Component

3,356 4,313 5,735 8,120 9,955 10,043 11,066 11,289 13,002 13,741

Permanent full-time employment in internationally traded services sectors amounted to 71,296 in 2005 with foreign-owned companies accounting for 46,691 (65 per cent) and Irish-owned companies accounting for the other 24,605 (35 per cent).

Employment in internationally traded services among indigenous companies grew from a base of 8,033 in 1996 to 24,605 in 2005, an increase of 206 per cent. Among foreign-owned companies, permanent full-time employment grew from 16,506 in 1996 to 46,691 in the current operating year, an increase of 183 per cent over the period.

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Chart 8: Gross Job Gains/Gross Job Losses/Net Change in Permanent Full-time Employment in Agency Assisted Companies, 1996-2005

-40,000 -30,000 -20,000 -10,000 0 10,000 20,000 30,000 40,000 50,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Gross Job Gains Gross Job Losses Net Change

_{1996 1997 1998 1999 2000 2001 2002 2003 2004 2005}

Gross Job Gains 27,950 30,429 32,154 37,947 44,751 30,097 26,700 23,680 26,171 27,055

Gross Job Losses -15,506 -14,450 -17,683 -21,333 -20,998 -33,589 -35,560 -31,994 -27,185 -24,176

Net Change 12,444 15,979 14,471 16,614 23,753 -3,492 -8,860 -8,314 -1,014 2,879

The net change in employment comprises gross job gains (in firms that have increased employment) less gross job losses (in firms where employment numbers have decreased).

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Chart 9: Gross Job Gains/Gross Job Losses/Net Change in Permanent Full-time Employment in Irish-owned Agency Assisted Companies, 1996-2005

-20,000 -15,000 -10,000 -5,000 0 5,000 10,000 15,000 20,000 25,000

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

_{1996 1997 1998 1999 2000 2001 2002 2003 2004 2005}

Gross Job Gains 13,168 14,258 14,614 17,494 19,851 15,379 14,841 13,681 13,594 13,835

Gross Job Losses -8,105 -8,359 -9,572 -10,720 -11,465 -14,125 -17,777 -16,285 -14,606 -12,566

Net Change 5,063 5,899 5,042 6,774 8,386 1,254 -2,936 -2,604 -1,012 1,269

Chart 9 illustrates trends in gross job gains and gross job losses among Irish-owned firms during the period 1996-2005. Gross job gains of 13,835 were outweighed by losses of 12,566 to give a net position of +1,269 jobs in the current operating year.

Gross job loss figures are at their lowest since 2000 among indigenous companies which led to the first year of positive net change in jobs created after the downward trend observed between 2001 and 2004.

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Chart 10: Gross Job Gains/Gross Job Losses/Net Change in Permanent Full-time Employment in Foreign-owned Agency Assisted Companies, 1996-2005

-25,000 -20,000 -15,000 -10,000 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Gross Job Gains 14,782 16,171 17,540 20,453 24,900 14,718 11,859 9,999 12,577 13,220

Gross Job Losses -7,401 -6,091 -8,111 -10,613 -9,533 -19,464 -17,783 -15,709 -12,579 -11,610

Net Change 7,381 10,080 9,429 9,840 15,367 -4,746 -5,924 -5,710 -2 1,610

Chart 10 provides an overview of gross job gains and gross job losses in foreign-owned agency-assisted companies between 1996 and 2005.

The period 1995 to 2000 was a period of strong employment growth characterised by positive year on year net increases in employment across foreign owned companies. This was particularly marked in 2000 when 15,367 jobs were created over and above the losses incurred in that year.

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2. REGIONAL EMPLOYMENT TRENDS 1996-2005

Chart 11: Permanent Full-time Employment in Irish-owned Agency Assisted Companies by Region, 1996-2005

0 20000 40000 60000 80000 100000 120000 140000 160000 180000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

S & E BMW All Regions

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

All Regions 125,611 131,510 136,552 143,326 151,712 152,966 150,030 147,426 146,414 147,683

Dublin 32,720 35,693 37,679 41,016 45,793 46,352 43,845 41,782 40,248 39,978

South West 18,854 19,448 19,926 20,364 22,612 22,147 22,772 22,663 23,299 23,134

Border 19,383 19,627 20,462 20,744 20,486 20,563 19,822 19,487 19,455 21,026

South East 16,083 16,272 16,599 17,288 17,414 17,542 17,385 17,247 16,956 16,466

West 11,027 11,657 12,420 12,823 13,441 13,745 13,287 13,340 13,509 13,910

Mid East 11,215 11,860 11,910 12,630 13,499 14,208 14,310 13,899 13,730 13,382

Mid West 10,456 10,575 10,758 11,377 11,418 11,057 10,884 10,897 10,900 11,231

Midlands 5,873 6,378 6,798 7,084 7,049 7,352 7,725 8,111 8,317 8,556

The trends in permanent full-time employment among Irish-owned manufacturing and internationally traded services are examined on a regional basis above.

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The regions which increased their share of indigenous employment since 1996 include the South-West (from 15.0 to 15.7 per cent), the South-West (from 8.8 to 9.4 per cent) and the Midlands (from 4.7 to 5.8 per cent).

The regions whose share of total indigenous employment has decreased between 1996 and 2005 include the Mid-West (from 8.3 to 7.6 per cent), the South-East (from 12.8 to 11.1 per cent) and the Border region (from 15.4 to 14.2 per cent).

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Chart 12: Permanent Full-time Employment in Foreign-owned Agency Assisted Companies by Region, 1996-2005

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

All Regions S & E BMW

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

All Regions 120,745 130,825 140,254 150,094 165,461 160,715 154,791 149,081 149,079 150,689

Dublin 34,927 39,404 44,361 52,165 58,603 56,148 55,043 51,433 51,315 51,791

South West 16,288 16,674 17,932 19,554 22,801 23,632 22,561 22,248 22,658 23,157

Mid West 16,014 17,026 19,098 20,456 22,178 21,173 19,012 17,922 17,814 17,638

Mid East 11,069 13,197 13,326 13,715 15,596 14,749 14,862 15,564 15,568 15,514

West 11,428 12,589 13,788 13,754 15,646 15,416 13,973 13,971 14,081 14,868

South East 10,997 11,401 11,240 11,397 11,398 11,738 12,199 12,142 11,937 12,014

Border 14,142 14,499 14,512 13,508 13,614 12,500 11,920 11,186 11,212 10,742

Midlands 5,880 6,035 5,997 5,545 5,625 5,359 5,221 4,615 4,494 4,965

Trends in permanent full-time employment in foreign-owned manufacturing and internationally traded services are detailed above.

Dublin has witnessed its share of manufacturing and internationally traded services employment grow from 29 per cent in 1996 to 34.4 per cent in 2005. During this period, employment levels in Dublin rose from 34,927 to 51,791 which represent an increase of 16,864 (48 per cent).

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The regions with the largest drop in their share of full-time employment over the period are the Border region (from 11.7 to 7.1 per cent) and the Midlands (from 4.9 to 3.3 per cent).

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3. SECTORAL EMPLOYMENT TRENDS 1996-2005

Chart 13: Sectoral Trends in Permanent Full-time Employment within Irish-owned Agency Assisted Companies, 1996-2005

10,000 20,000 30,000 40,000 50,000 60,000 70,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Fo o d, Drink and To bacco Textiles, clo thing and Leather

Chemicals Electro nics

M edical and precisio n instruments A ll o ther M anufacturing Financial and o ther intn Services Other Secto rs A ll Secto rs

₁₉₉₆ ₁₉₉₇ ₁₉₉₈ ₁₉₉₉ ₂₀₀₀ ₂₀₀₁ ₂₀₀₂ ₂₀₀₃ ₂₀₀₄ ₂₀₀₅

Food, Drink and

Tobacco 31,899 32,852 32,978 34,168 34,595 35,148 35,642 36,821 36,620 36,489 Textiles, Clothing

and Leather 11,582 11,053 10,479 8,795 7,787 7,006 6,315 5,186 4,323 4,123

Chemicals 3,352 3,470 3,673 3,810 4,077 4,278 4,070 3,733 3,844 4,024

Electronics 6,810 7,174 7,647 7,528 7,787 7,194 6,537 6,306 5,879 6,121

Medical and precision instruments

1,510 1,667 1,919 2,230 2,538 2,741 2,885 2,853 2,971 3,087

All Other

Manufacturing 56,759 59,090 60,835 63,192 65,239 64,413 62,022 60,538 59,775 59,349 Internationally

Traded Services 8,033 10,259 12,561 16,538 22,113 24,020 24,247 23,410 23,853 24,605

Other Sectors 5,666 5,945 6,460 7,065 7,576 8,166 8,312 8,579 9,149 9,885

Overall Total 125,611 131,510 136,552 143,326 151,712 152,966 150,030 147,426 146,414 147,683

Chart 13 presents a sectoral breakdown of permanent full-time employment in Irish-owned manufacturing and internationally traded services.

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A sector that features prominently as one of the growth areas is the Internationally Traded Services sector where employment has grown from 8,033 in 1996 to 24,605 in 2005 - an increase of 206 per cent over the period.

The chart also highlights the importance of Food and Drink sector which accounts for 36,489 or 24.7 per cent of all permanent jobs in indigenous manufacturing and internationally traded services sectors.

Total employment in the relatively ‘high tech’ areas of Chemicals, Electronics and Medical Devices amounted to 13,232 or 8.7 per cent of total indigenous employment in 2005. The employment levels in the Medical Devices sector among indigenous companies has more than doubled between 1996 and 2005. The largest single category in the table above is All Other Manufacturing which comprises the relatively low technology sectors such as wood, paper and printing, general engineering and non-metallic minerals.

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Chart: 14 Sectoral Trends in Permanent Full-time Employment within Foreign-owned Agency Assisted Companies, 1996-2005

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Fo o d, Drink and To bacco Textiles, Clo thing and Leather

Chemicals Electro nics

M edical and P recisio n Equipment A ll Other M anufacturing Financial and Internatio nal Services Other Secto rs A ll Secto rs

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Food, Drink and

Tobacco 12,382 11,935 11,879 13,451 14,105 14,952 14,561 13,161 12,779 11,560 Textiles,

Clothing and Leather

8,195 7,120 6,458 4,972 4,160 3,324 2,566 1,857 1,444 1,376

Chemicals 15,263 15,809 16,523 17,489 18,320 19,104 19,515 19,844 20,440 20,546

Electronics 27,758 31,984 32,806 34,040 39,186 32,152 28,280 25,396 25,043 24,747

10,294 11,796 13,124 13,920 15,385 16,370 16,766 16,997 18,099 20,079

All Other

Manufacturing 29,151 30,044 30,813 30,987 31,472 30,175 28,470 26,842 24,885 24,185 Internationally

Traded Services 16,506 20,790 27,283 33,988 41,264 42,871 42,993 43,363 45,002 46,691

Other Sectors 1,196 1,347 1,368 1,247 1,569 1,767 1,640 1,621 1,387 1,505

Overall Total 120,745 130,825 140,254 150,094 165,461 160,715 154,791 149,081 149,079 150,689

The chart and the accompanying table present a sectoral analysis of employment in foreign-owned manufacturing and internationally traded services areas.

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Electronics and Internationally Traded Services were the two sectors with highest employment growth among foreign owned companies during the second half of the 1990s but the trends in these two sectors have been different particularly since 2000. Employment in the Electronics sector increased from 27,758 to 39,186 between 1996 and 2000 only to witness employment levels returning to below 1996 levels in the five years since then. On the other hand employment in the Internationally Traded Services sector has grown from 16,506 in 1996 to 46,691 in 2005. Although most of this growth was concentrated between 1996 and 2000, the sector recorded a growth of 13 per cent in employment from its level of 41,264 in 2000.

The Chemicals sector and the Medical Devices sector are two sectors where employment growth has remained steady throughout the period examined in this paper. It is worth noting that both sectors have continued to experience a net increase in employment in the years since 2000.

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[image:25.595.59.544.184.341.2]

APPENDIX 1: Trends in Permanent Full-time Employment by

Region, 1996-2005

Table 1: Trends in Permanent Full-time Employment by Region in Agency Assisted Companies

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Dublin 67,647 75,097 82,040 93,181 104,396 102,500 98,888 93,215 91,563 91,769

South West 35,142 36,122 37,858 39,918 45,413 45,779 45,333 44,911 45,957 46,291

Border 33,525 34,126 34,974 34,252 34,100 33,063 31,742 30,673 30,667 31,768

Mid East 22,284 25,057 25,236 26,345 29,095 28,957 29,172 29,463 29,298 28,896

Mid West 26,470 27,601 29,856 31,833 33,596 32,230 29,896 28,819 28,714 28,869

West 22,455 24,246 26,208 26,577 29,087 29,161 27,260 27,311 27,590 28,778

South East 27,080 27,673 27,839 28,685 28,812 29,280 29,584 29,389 28,893 28,480

[image:25.595.51.552.396.538.2]

Midlands 11,753 12,413 12,795 12,629 12,674 12,711 12,946 12,726 12,811 13,521

Table 2: Trends in Permanent Full-time Employment in Irish-owned Agency Assisted Companies by Region

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Dublin 32,720 35,693 37,679 41,016 45,793 46,352 43,845 41,782 40,248 39,978

South West 18,854 19,448 19,926 20,364 22,612 22,147 22,772 22,663 23,299 23,134

Border 19,383 19,627 20,462 20,744 20,486 20,563 19,822 19,487 19,455 21,026

South East 16,083 16,272 16,599 17,288 17,414 17,542 17,385 17,247 16,956 16,466

West 11,027 11,657 12,420 12,823 13,441 13,745 13,287 13,340 13,509 13,910

Mid East 11,215 11,860 11,910 12,630 13,499 14,208 14,310 13,899 13,730 13,382

Mid West 10,456 10,575 10,758 11,377 11,418 11,057 10,884 10,897 10,900 11,231

Midlands 5,873 6,378 6,798 7,084 7,049 7,352 7,725 8,111 8,317 8,556

Table 3: Trends in Permanent Full-time Employment in Foreign-owned Agency Assisted Companies by Region

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Dublin 34,927 39,404 44,361 52,165 58,603 56,148 55,043 51,433 51,315 51,791

South West 16,288 16,674 17,932 19,554 22,801 23,632 22,561 22,248 22,658 23,157

Mid West 16,014 17,026 19,098 20,456 22,178 21,173 19,012 17,922 17,814 17,638

Mid East 11,069 13,197 13,326 13,715 15,596 14,749 14,862 15,564 15,568 15,514

West 11,428 12,589 13,788 13,754 15,646 15,416 13,973 13,971 14,081 14,868

South East 10,997 11,401 11,240 11,397 11,398 11,738 12,199 12,142 11,937 12,014

Border 14,142 14,499 14,512 13,508 13,614 12,500 11,920 11,186 11,212 10,742

[image:25.595.51.547.597.740.2]

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[image:26.595.67.531.173.760.2]

APPENDIX 2: Trends in Permanent Full-time Employment by

Sector, 1996-2005

Table 4: Trends in Permanent Full-time Employment in Agency Assisted Companies by Sector, 1996-2005

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

International Services

21,183 26,736 34,109 42,406 53,422 56,848 56,174 55,484 55,853 57,555

Food products beverages and tobacco

44,281 44,787 44,857 47,619 48,700 50,100 50,203 49,982 49,399 48,049

Chemicals and chemical products

18,615 19,279 20,196 21,299 22,397 23,382 23,585 23,577 24,284 24,570

11,804 13,463 15,043 16,150 17,923 19,111 19,651 19,850 21,070 23,166

Basic and fabricated metal products

15,729 16,799 17,622 18,425 18,550 18,151 17,406 16,763 16,728 16,899

Office machinery and computers

13,994 17,399 17,592 19,131 22,772 19,788 17,972 16,203 16,565 16,517

Financial Services _{3,356 4,313 5,735 8,120 9,955 10,043 11,066 11,289 13,002 13,741}

Other sectors 6,862 7,292 7,828 8,312 9,145 9,933 9,952 10,200 10,536 11,390

Machinery and equipment n.e.c.

11,874 11,948 12,327 13,281 13,557 13,072 12,267 11,664 11,369 11,304

Other non-metallic mineral products

10,668 11,051 10,851 11,195 12,010 11,992 11,828 11,763 11,646 10,757

Paper and paper products; publishing and printing

13,296 13,738 13,815 13,886 14,022 13,673 12,828 11,738 10,745 10,243

Electrical machinery and apparatus n.e.c.

11,880 12,787 13,527 13,016 14,283 12,058 10,925 9,862 9,626 9,847

Transport equipment

10,415 10,438 10,962 11,013 11,652 11,539 11,105 10,384 9,742 9,384

Other manufacturing n.e.c.

9,241 9,689 10,004 9,864 9,799 9,507 9,182 9,190 8,849 8,993

Rubber and plastic products

9,203 9,656 9,892 9,932 10,440 10,009 9,449 9,247 8,840 8,912

Wood and wood products

5,484 5,815 6,175 6,583 6,681 6,645 6,427 6,631 6,741 7,042

Electronic Equipment

8,694 8,972 9,334 9,421 9,918 7,500 5,920 5,637 4,731 4,504

Textiles and textile products

9,739 9,112 8,410 7,078 6,785 6,009 5,098 3,900 3,421 3,268

Clothing, footwear and leather

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[image:27.595.74.548.135.688.2]

Table 5: Trends in Permanent Full-time Employment in Irish-owned Agency Assisted Companies by Sector, 1996-2005

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Food products

beverages and tobacco

31,899 32,852 32,978 34,168 34,595 35,148 35,642 36,821 36,620 36,489

International

Services 7,345 9,365 11,542 14,738 19,896 21,778 21,981 21,173 21,243 21,961

Basic and fabricated

metal products 10,585 11,358 11,871 12,726 13,251 13,054 12,783 12,367 12,758 13,144

Other sectors 5,666 5,945 6,460 7,065 7,576 8,166 8,312 8,579 9,149 9,885

Other non-metallic

mineral products 8,549 8,963 8,975 9,341 10,139 10,234 9,944 9,876 9,851 9,129

Pulp paper and paper products; publishing and printing

11,439 11,805 11,933 12,042 12,281 12,091 11,248 10,227 9,446 8,967

Other manufacturing

n.e.c. 7,277 7,683 8,067 8,188 8,279 8,288 8,061 8,118 7,851 7,985

Machinery and

equipment n.e.c. 6,656 6,678 6,749 7,131 7,253 6,998 6,836 6,618 6,743 6,752

Wood and wood

products 4,969 5,068 5,428 5,787 5,852 5,841 5,721 5,939 6,070 6,356

Rubber and plastic

products 5,476 5,659 5,836 5,860 6,106 5,842 5,399 5,410 5,229 5,252

Chemicals and

chemical products 3,352 3,470 3,673 3,810 4,077 4,278 4,070 3,733 3,844 4,024

1,510 1,667 1,919 2,230 2,538 2,741 2,885 2,853 2,971 3,087

Electrical machinery

and apparatus n.e.c. 3,325 3,572 4,023 3,825 3,935 3,368 2,945 2,762 2,753 2,927

Financial Services _{688 894 1,019 1,800 2,217 2,242 2,266 2,237 2,610 2,644}

Clothing, footwear

and leather 7,320 6,840 6,492 4,985 4,111 3,581 3,240 2,785 2,194 2,113

Textiles and textile

products 4,262 4,213 3,987 3,810 3,676 3,425 3,075 2,401 2,129 2,010

Transport

equipment 1,808 1,876 1,976 2,117 2,078 2,065 2,030 1,983 1,827 1,764

Electronic

Equipment 1,982 2,055 2,211 2,214 2,229 2,190 1,913 2,014 1,665 1,679

Office machinery

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[image:28.595.73.549.138.678.2]

Table 6: Trends in Permanent Full-time Employment in Foreign-owned Agency Assisted Companies by Sector, 1996-2005

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 International

Services 13,838 17,371 22,567 27,668 33,526 35,070 34,193 34,311 34,610 35,594

Chemicals and

chemical products 15,263 15,809 16,523 17,489 18,320 19,104 19,515 19,844 20,440 20,546

10,294 11,796 13,124 13,920 15,385 16,370 16,766 16,997 18,099 20,079

Office machinery

and computers 12,491 15,852 16,179 17,642 21,149 18,152 16,293 14,673 15,104 15,002

Food products beverages and tobacco

12,382 11,935 11,879 13,451 14,105 14,952 14,561 13,161 12,779 11,560

Financial Services _{2,668 3,419 4,716 6,320 7,738 7,801 8,800 9,052 10,392 11,097}

Transport

equipment 8,607 8,562 8,986 8,896 9,574 9,474 9,075 8,401 7,915 7,620

Electrical machinery

and apparatus n.e.c. 8,555 9,215 9,504 9,191 10,348 8,690 7,980 7,100 6,873 6,920

Machinery and

equipment n.e.c. 5,218 5,270 5,578 6,150 6,304 6,074 5,431 5,046 4,626 4,552

Basic and fabricated

metal products 5,144 5,441 5,751 5,699 5,299 5,097 4,623 4,396 3,970 3,755

Rubber and plastic

products 3,727 3,997 4,056 4,072 4,334 4,167 4,050 3,837 3,611 3,660

Electronic

Equipment 6,712 6,917 7,123 7,207 7,689 5,310 4,007 3,623 3,066 2,825

Other non-metallic

mineral products 2,119 2,088 1,876 1,854 1,871 1,758 1,884 1,887 1,795 1,628

Other sectors 1,196 1,347 1,368 1,247 1,569 1,767 1,640 1,621 1,387 1,505

Paper and paper products; publishing and printing

1,857 1,933 1,882 1,844 1,741 1,582 1,580 1,511 1,299 1,276

Textiles and textile

products 5,477 4,899 4,423 3,268 3,109 2,584 2,023 1,499 1,292 1,258

Other manufacturing

n.e.c. 1,964 2,006 1,937 1,676 1,520 1,219 1,121 1,072 998 1,008

Wood and wood

products 515 747 747 796 829 804 706 692 671 686

Clothing, footwear

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Appendix 3 Overview of Methodology and Definitions

The Annual Employment Survey is carried out by postal card and extensive telephone follow-up.

In line with previous years, census returns as at 31st_{October for Permanent Full-time and for}

Temporary, Part-time and Short Term Contract employment combined were sought.

In the presentation of the results, we have reflected the nationality of any companies at the time of reporting. In the light of changes of ownership, the inclusion of new companies and the correction of identified errors, historic employment figures have been restated where appropriate. Therefore, the figures may differ from those previously reported.

Definitions

Permanent Full-Time: Employees who have been employed full time for nine months or longer or who will be on contracts of nine months or longer on 31st_{October 2005.}

Part-time/Temporary: Employees who have been employed for less than 9 months in the 12 months to 31st_{October 2005 or who are on employment contracts of less than 9 months or employed on a}

casual basis.

Job Gains: Increase in employment, on a company by company basis, arising in the survey year over and above the company's employment level in the previous year.

Job Losses: Decrease in employment on a company by company basis, arising in the survey year.