Net job losses totalled 4,000 in 2002, according to Enterprise Ireland's end-of-year statement published today.
It is the first net decline in jobs in ten years.
The statement shows 12,300 jobs were created by companies supported by the organisation, but more than 16,300 were lost due to company closures and dwindling markets.
It also shows exports increased by 2 per cent in 2002 and productivity increased by 5 per cent.
Enterprise Ireland Chief Executive Mr Dan Flinter said it would be "unreal and dishonest" to pretend there would not be further job losses and company closures in the next 12 months.
Presenting the end-of-year statement this morning, Mr Flinter said "2002 has been by far the most difficult year for Irish companies in the last 10 years and trading conditions in our key markets will continue to represent a serious challenge."
He looked forward to companies creating new jobs this year but stressed that there was no way of knowing if the growth in employment would outpace redundancies.
The software industry was particularly hard hit by contracting markets, and Enterprise Ireland estimated that the erosion of competitiveness through higherwage costs and rising insurance premiums was behind up to one third of the redundancies.
Mr Flinter said he was encouraged by the fact that Irish companies were continuing to invest in research and development, which was the key to lasting success, and that company start-ups were poised for a 20 per cent increase this year.He added: "We believe that over the next two to three years the economy can be brought to a higher level of growth."
(Additional reporting PA)
