Waterford City remains a distinct black spot for unemployment compared to national trends, according to a new survey which also predicts that the real potential for significant job creation in the future will lie in the service sector.
The Waterford City Enterprise Board will base its future strategy on the findings of the economic survey which it commissioned NGM Market Research to carry out.
The report, by NGM's managing director, Paul Cassidy, points to the city's above-average population growth, 7.5 per cent for the decade 1986 to 1996 compared to a national increase of just 2.2 per cent.
Unemployment of 21 per cent in the city compares unfavourably with the national average of just 12 per cent, and long-term unemployment is 54.4 per cent of the total unemployed compared to the national average of just 49.7 per cent.
While the national unemployment figure has fallen steadily, Waterford's figure has persisted at around 21 per cent for the past decade. Between 6,500 and 8,500 new jobs need to be created in the city between 1995 and 2010 to achieve the national target rate of 6 per cent unemployment by that year.
Mr Cassidy suggests there should be a strong focus on developing local service-type jobs, as national surveys predict this is where the most vigorous employment growth can take place. He points out that the southeast region in general is very heavily reliant on manufacturing and agriculture, both traditional sectors which are more or less in decline. Manufacturing, with 37.4 per cent of total employment in Waterford, dominates the city's economy at present, and service sector employment as a ratio of industrial employment is 1:1 compared to the national ratio of 2:1.
Local services fall into the categories of commercial, professional and personal services. Research at national level has identified opportunities for small service enterprises in high-tech areas such as medical, surgical, pharmaceuticals, food, drink, electronics, publishing and printing. Specialist skills such as graphic design will be in demand.
Waterford's enterprise board is itself contributing to the necessary job-creation realignment. It assisted 38 projects last year which have a total job potential of 76 full-time and 11 part-time posts.