The rate of job losses in IDA-backed companies in 2001 was double the average of the past decade, the IDA said today.
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An end-of-year report published today showed that 13,100 new jobs were created in IDA backed companies in 2001, but this was offset by 17,000 job losses, the first such decline in fifteen years.
Mr Seán Dorgan, chief executive of IDA Ireland described 2001 as "the toughest in a long time" for many companies in the information technology and communications (ICT) sector. However he added that the IDA expected a recovery to begin next year.
While the ICT sector bore the brunt of the downturn sectors such as international services and pharmaceuticals reported positive employment growth.
Mr Dorgan observed that while external factors such as the September terror attacks were a key influence on the economy the underlying fundamentals remained strong.
Mr Dorgan also dismissed talk of recession. "What the results mean is that some of the extraordinary growth of 2000 has been stepped back in 2001 but there is nothing like a recession."
"When the recovery in the global ICT sector comes, as it inevitably must, Ireland will be well positioned to benefit once again, as we have a done a number of times in the past." he added.