Ireland's employment growth was the third-highest in the OECD over the 10 years from 1986 to 1996.

According to Mr Noel Cahill of the National Economic and Social Council employment growth has been the outstanding feature of Irish economic performance.

Writing in the Irish Banking Review Mr Cahill also found that indigenous manufacturing has managed to close the gap on overseas industry in terms of employment creation.

Between 1993 and 1996 indigenous firms accounted for a "remarkable" 41 per cent net growth of manufacturing employment, up from 28 per cent between 1987 and 1996.

He added that there has been a much-improved performance in recent years by indigenous manufacturing. "The development of these businesses should remain an important priority. These enterprises can compete effectively in European and other markets, can cushion against potential negative future shocks in foreign direct investment and can contribute to sustaining employment growth."

Mr Cahill also found that the rate of output growth in the state was faster than in any other OECD country, with the exception of Luxembourg. The annual rate of employment growth, 1.8 per cent, was the third highest in the OECD and identical to Australia and the Netherlands.

At the same time, employment in services has been growing during the 1990s at a higher rate than in any other EU country and also higher than in the US. And unlike, many other countries, according to Mr Cahill most of this has been in full-time positions.