The economy is "haemorrhaging jobs" in the industrial sector, an economist said yesterday following the release of Central Statistics Office figures.
Data to the end of June showed the industrial sector was losing an average of 850 jobs a month or 200 per week. The number employed in the sector has dropped to 258,700, a drop of 3.8 per cent in 12 months.
The numbers employed in the sector were: 254,900 in June 1999; 268,800 in June 2000; and 269,000 in June 2001. Almost two-thirds of the jobs lost in the 12 months to June 2002 were in the manufacture of electrical equipment category, or high-tech sector.
Job losses in the industrial sector is masked by recent large growth in jobs in the public sector, which is making for an increase in employment as a whole.
"Because of this the effect of the global downturn on the companies most affected by it, is being hidden," said IIB Bank's chief economist, Mr Austin Hughes. He added that this could mean the economy was responding more quickly to developments than it did in the early 1990s. "Certain sectors are finding it very tough right now. The parts of the economy that are most exposed are getting hardest hit and it has not as yet broadened out to the rest of the economy."
Other CSO data showed yesterday that the average number of hours worked in the industrial sector fell by 2.2 per cent in the year to June 2002. Industrial hourly earnings rose by 8.8 per cent. The average weekly earning for all employees in June 2002 was €467.96, a rise of 6 per cent. This broke down as a rise of 6.3 per cent for industrial employees and 5.2 per cent for clerical and managerial employees combined.
