High-value investment needed - Ibec

The Republic needs more investment in high-value sectors of the economy if current living standards are to be maintained over the long term, according to a new economic analysis from employers' group Ibec.

The association outlines specific concerns about the viability of jobs in sectors where productivity is declining and value for money is questionable.

Ibec chief economist David Croughan points out that about 90 per cent of all jobs generated in the first three months of this year came in sectors where productivity has either stalled or is in decline.

Significant employment increases in areas such as the public sector, construction and business services should not "lull us into a false sense of security" about the competitiveness of the economy, Mr Croughan notes.

"Many of these jobs are low-productivity and by their nature more vulnerable," he says.

The research also highlights an imbalance between the significant proportion of new jobs associated with the housing boom.

Construction employment, accounted for 30,800 of the 72,400 jobs created in the first quarter. Many of the 18,500 new jobs in financial and business services were, meanwhile, in mortgage lending and legal and auctioneering services also linked to housing.

The boom "must come to an end sometime soon", according to Mr Croughan.