This week’s annual Udaras na Gaeltachta annual report gives some hope to industry in Donegal.
They say that because the main job losses occurred as a result of Gaeltacht enterprises restructuring, downsizing or cutting costs to maintain competitiveness. A total of 204 new jobs were created in the Donegal Gaeltacht in 2009.
When job losses are taken into account, overall employment declined by 225 jobs in comparison with the previous year.
The majority of job losses arose from the closure of Euro Iompar Teo on the Gaoth Dobhair Business Park and also as a result of companies reducing their workforce in an effort to sustain their business.
Many Údarás-supported deferred expansion and capital investment plans. The fact that a large number of losses were due to companies shedding jobs in an attempt to sustain their business rather than going for closures is encouraging, they say in their annual report, launched on Monday.
Údarás believes that many of the jobs lost in the past year may be regained in due course as those companies reposition themselves and capitalise on the recovery.
A total of 710 new jobs were created in Údarás assisted-companies in 2009. However, Gaeltacht companies were seriously affected by the national and global economic downturn and as a result net employment in Údarás supported companies fell by 721 or 8.8% from the 2008 base. The Irish economy in general saw a 11.8% drop in full time employment in the past year. Total fulltime employment in Údarás na Gaeltachta assisted companies now stands at 7,472.
Gaeltacht companies faced challenges which mirrored those faced by other companies in the Irish economy during 2009. The lack of access to business credit, the sustained pressure of weak exchange rates which eroded profitability margins and the fall-off in global markets continued to create difficulties for companies.
The figures show that employment in the services industries and modern manufacturing continued to increase during the year whereas enterprises in the construction related and traditional manufacturing sectors continued to decline.