ISME has expressed concern at the major increase in redundancies for the first quarter of 2006 with the figures up 36% on the same time last year.
ISME's CEO Mark Fielding said that the dramatic increase recorded confirms that a big number of companies are continuing to witness competitive pressures resulting in downsizing and in come cases, closure.
Firms, especially those involved in the manufacturing sectors, are coming under intense cost pressures, which are undermining their competitiveness and ultimately leading to job losses, according to ISME.
It says that since January 5,902 redundancies have been reported. Of these 1,735 jobs have been lost in the manufacturing sector, representing 29% of all job losses. In the last two years, 20,000 jobs have been lost in manufacturing in total.
'It is estimated that every one manufacturing job maintains three jobs in other sectors of the economy, highlighting the importance of the sector to the economy as a whole,' Mr Fielding points out.
He called on the Government to undertake a comprehensive review of the cost environment in which Irish businesses operate, especially the level of increases in public utilities.
IBEC economist Fergal O'Brien called the figures 'worrying', saying they reflected the fact that the
competitive pressures on Irish business continued to intensify.
'The costpressures facing the manufacturing sector are reflected in the large number of companies relocating to lower cost countries, but increasingly redundancies are now occurring in the services sector,' he added. Some 55% of all jobs.
