UDARAS na Gaeltachta enjoyed another record year in creating jobs in 1998, although higher job losses means the rate of increase in its employment figures was less than in 1997.
The regional development company stated yesterday that 1,295 new full-time jobs were created in client companies, the highest figure achieved in Gaeltacht areas, and mostly attributable to expansion of the existing industrial base. One third of the jobs came from new industry.
The figure represents a 20 per cent increase on the 1,073 jobs created in 1997. However, with the number of job losses at 975, there were 30 per cent fewer net new jobs created than in 1997, 320 compared to 415.
But the agency's chief executive, Mr Ruan O Bric, said the underlying growth of 4 per cent compared favourably with the national net growth in employment of 5 per cent, "particularly when the regional dimension and the geographical location of the Gaeltacht are taken into account".
Just under one third of the job losses were due to company closures, with the remainder due to layoffs. Most of the jobs were lost in the textiles, rubber and plastics industries. "A number of companies in the clothing sector experienced difficulties during 1998 and it is prudent to anticipate further job losses from this sector in the future," Mr O Bric said.
The closure of Fruit of the Loom's plant in the Gaeltacht area of Dungloe, Co Donegal, contributed to the job loss figures. Employment in the textiles sector has declined from 17 per cent of total employment in 1993 to 12.5 per cent in 1998.
Mr O Bric said the agency's focus would increasingly have to be on attracting graduate-based, high-skilled jobs to the Gaeltacht areas of Donegal, Mayo, Galway, Meath, Kerry, Cork and Waterford.
"We have a major challenge on our hands, not just for the coming year, but for the coming decade," he said.
Preliminary results from an Economic and Social Research Institute survey show that 1,200 people a year - mostly young and well-educated - are leaving the Gaeltacht.
For the unemployed and people involved in home duties, "their pay expectations tend to exceed the market rate for their current level of skills", according to the report. It recommends that existing industry move its gross wage levels to £200 a week by increasing its productivity/value added levels.
Mr O Bric added that an adequate provision of industrial space continued to be a problem in the Gaeltacht areas most attractive to industry and was compounded by more stringent planning procedures.
"A number of projects, which we believe from our negotiations would have been located in the Gaeltacht had space been available, went elsewhere," he said.
For the total of 1,462 jobs approved in new projects and expansions, some of which have yet to come on stream, a projected investment of about £59 million, including State assistance of over £24 million, is involved.
