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Job displacement claims 'unproven'

Building industry - Foreign workers make up 9%
Building industry - Foreign workers make up 9%

A new report by AIB economist John Beggs says foreign workers are spread widely across all sectors of the economy, and are not concentrated in the building industry.

The report, based on Central Statistics Office figures for the third quarter of 2005, says there were 159,300 non-nationals working in the country, 8% of the total workforce. Foreign workers accounted for 45,000 of the 96,200 increase in employment in the year to Q3 2005.

The economist says the proportion is one of the highest in the EU, and 31% of foreign workers come from the ten newest EU members.

Mr Beggs says 22,600 foreign workers are employed in construction, 9% of that sector's workforce. But more - 27,800 - work in manufacturing, while 23,000 non-nationals make up almost 20% of the workforce in the hotel and restaurant sector.

He adds that despite the growth in non-national employment, employment among Irish workers has continued to grow and the unemployment rate is close to what is defined as full employment.

Mr Beggs points to three sectors where employment of Irish workers fell while employment of foreign workers increased - manufacturing, hotels and agriculture. But he says there is not enough detail to tell whether foreign workers are displacing Irish workers in some industries. 'The case regarding displacement remains unproven,' the report says. It also notes that total employment in manufacturing is falling.

The report says the economy will continue to attract foreign workers, and evidence from estate agents suggests many are buying property and are here to stay.