Jobs recovery better than expected - Ibec

Monday 07 October 2013 10.55
Ibec report shows that the manufacturing sector provided 33% of all job announced in the first half of 2013
Ibec report shows that the manufacturing sector provided 33% of all job announced in the first half of 2013

New research from business group Ibec shows that 8,259 new jobs were announced in the last six months, with over 2,100 jobs announced in September alone - an annual increase of 31.%.

Ibec's latest jobs report show that the jobs recovery significantly exceeded expectations in the first half of the year. Employment rose by 34,000 compared to the same time last year.

The report shows that the manufacturing sector provided 33% of all jobs announced in the first half of 2013. The IT sector has made the most job announcements, totalling 1,420 in the first half of the year.

Ibec noted that the fastest growing sectors were the agriculture, forestry and fishing sector - up 18.6% - and the accommodation and food services activities sectors, which grew by 8%.

The association said next week's Budget should support the progress on recent job creation by not increasing excise, VAT or PRSI rates.

''We simply can not afford to take more money out of the domestic economy," Ibec's chief economist Fergal O'Brien stated.

Mr O'Brien pointed out that Irish excise rates are already among the highest in Europe. "Any increase would cost jobs, further squeeze struggling consumers and potentially reignite cross-border shopping," he stated.

The economist said the reduced VAT for the hospitality sector and the introduction of a lower employer PRSI rate for low wage workers has worked.

"A reversal of the 9% VAT rae of 13.5% would cost 10,000 jobs in the economy and undo much of the employment recovery seen in that sector over the past year," he cautioned.