Firms in the manufacturing and services area reported 53,700 job vacancies or a vacancy rate of just less than 6 per cent in a survey carried out by the ESRI last autumn.
It found that vacancies existed in all sectors but were greatest in the hi-tech manufacturing and traditional manufacturing sectors, where more than half of firms had vacancies, and in larger firms where at least half had openings.
Overall, 27 per cent of firms said they had vacancies.
The survey was carried out by the Economic and Social Research Institute (ESRI) on behalf of Fas and Forfas. Almost 1,100 firms in manufacturing and services were surveyed.
The occupations with the highest vacancy rates were computer professionals, where some 15 per cent of jobs were unfilled; computer technicians and associate professionals, a sector with a vacancy rate of 14 per cent; engineering professionals, engineering technicians, science technicians and security staff, all of which reported vacancy rates of 11 to 12 per cent.
The occupations with the highest absolute number of vacancies were production operatives and sales, both of which had 8,300 job vacancies. There were some 8,100 jobs going for skilled maintenance and skilled production staff while 6,800 clerical and secretarial jobs were on offer.
Between them, these jobs accounted for almost three-fifths of all vacancies.
As well as facing problems recruiting staff, one sixth of firms said they were having difficulties in retaining staff. Competition from other firms and wages which were lower than in other firms were the most common difficulties in holding onto employees.
A geographic breakdown between Dublin city and county and the rest of the State showed that one third of firms in and around the capital had vacancies in autumn 1998 compared to a quarter of firms elsewhere.
There was more demand in Dublin for computer professionals with the vacancy rate at 17 per cent compared to 11 per cent in the rest of the State and less demand for engineering and science technicians.
The increase in vacancies highlighted the importance of having an efficient job-placement function within the public employment service, the survey said. It noted that in recent years, staff numbers in the Fas employment service had increased.
"These steps should continue so that the Employment Service can attain its objective of identifying and filling a large number of employers' vacancies," the ESRI said.
Of those surveyed, only about half said they used the State employment services to recruit staff with less than a third employing private recruitment agencies. By contrast, almost three quarters relied on word of mouth or personal contacts to hire staff while about two thirds said they advertised.
As the labour market tightens, more firms will have to use formal methods of recruitment, including the State service and private agencies, the ESRI believes.
The report said the experience of other EU countries suggested that pay increases alone would not solve the recruitment difficulties faced by employers.
"More efficient use of labour and adjustments designed to increase labour supply through education and training, improvements in working conditions and provision of creche facilities rather than simply relying on pay increases, merit careful consideration by employers as positive responses to the challenge posed by increasing vacancies," the ESRI said.
