PRSI scheme could create up to 10,000 new jobs in one year - Minister O’Keeffe

'Bloxham data shows Government strategy to tackle unemployment and drive economic growth is working' - Minister

21 June, 2010

Up to 10,000 new jobs could be created in one year as a result of the Government’s Employer Job (PRSI) Incentive Scheme, according to the Minister for Enterprise, Trade and Innovation, Batt O’Keeffe TD.

Minister O’Keeffe said the new scheme would be a direct stimulus for the real economy by saving employers money and shifting the balance in favour of job creation.

‘The scheme is another Government measure to tackle unemployment by cutting business input costs and incentivising employers to take workers off the live register as Ireland emerges from recession and our economy begins to recover,’ said Minister O’Keeffe.

Minister O’Keeffe said Bloxham Stockbrokers’ Irish Quarterly Economic Outlook today shows Ireland is turning the economic corner faster than expected.

‘Bloxham says a number of indicators, including retail sales and Purchasing Managers’ Index data, indicate that the economy is recovering at a quicker pace than expected by some economists at the start of this year.

‘Bloxham now expects the economy to grow by 0.5pc this year on a Gross Domestic Product basis, compared to its previous projection in March of a contraction of 0.75pc,’ said Minister O’Keeffe

He said stimulus packages such as capital expenditure programmes in roads and schools, the car scrappage scheme, home insulation measures, and the Rural Development Programme are taking people off the live register.

‘Our training programmes and extra places in further and higher education are re-skilling our workforce to take up new jobs in growth areas of the economy.

‘Firms backed by the Government’s job creation agencies, IDA Ireland and Enterprise Ireland, support 500,000 jobs or 30 per cent of the entire workforce.

‘They contribute €33 billion in payroll, materials and services costs, which represents about 26 per cent of gross national product, and pay €3 billion or 78 per cent of all corporation tax.

‘In the past six months alone, we have created over 1,000 high-quality jobs through IDA Ireland investment wins such as eBay, IBM, Hertz, and Pay Pal.

‘Enterprise Ireland, which helps indigenous firms to develop export markets, has created some 800 jobs in the same period.

‘The agencies’ pipeline for new jobs is strong this year and beyond.

‘We are looking at net job creation of 20,000 next year and 45,000 each year thereafter.

‘We have reasons to be positive - and we must keep our focus on key areas for recovery: competitiveness; human capital; innovation; infrastructure; green economy; and trade,’ said Minister O’Keeffe.

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For further information please contact:

Bernard Mallee, Press Adviser to Minister Batt O'Keeffe, Department of Enterprise, Trade and Innovation, on Tel: +353 1 631 3944, Mobile: +353 87 9173022, Email: bernard.mallee@deti.ie