The State training and employment agency FAS is forecasting that employment growth this year will be only half as strong as predicted by the Government in the Budget. This would result in the lowest level of job creation recorded in Ireland for 12 years.
In its latest Quarterly Labour Market Commentary, FAS says it expects 11,000 new jobs in 2004. This would be the lowest annual increase in employment since 1992, and is in sharp contrasts to the 23,000 new jobs the Government is banking on.
The FAS forecast for employment growth is also significantly lower than those of the Central Bank and the ESRI.
In its commentary, FAS highlights the recruitment cap on public service jobs as well as an expectation of falling employment in industry and construction in the year ahead. Another reduction of 3,000 in the numbers employed in the agricultural sector is also predicted.
FAS says there is a consensus among most commentators that the fledgling economic recovery can be sustained this year and that there should be about 3% more economic activity taking place.
The State agency expects the growth in the labour force to be faster than the growth in employment and as a consequence ,unemployment is expected to rise by about 8,000 during 2004.
