Irish ICT Down in Net Profit Data

New figures on the Irish high tech economy have been posted from Internet agency Net Profit this week. The analysis shows that 2001 proved a lean period for what once was formerly the high growth sector of ICT (information and communications technology).

Net Profit's latest data indicates that a pattern of restructuring and job losses characterised ICT in Ireland for most of 2001. Unfortunately it appears that this trend is set to continue well into 2002 as well. The company's analysts suggest that job cuts are a result of the ongoing downturn in the US economy's technology sector, a sector on which the Irish economy has become increasingly dependent. Many multinationals such as Compaq, Motorola and Dell Computer seeking a manufacturing or distribution base for Europe have landed in Ireland over the past decade. This influx of foreign companies was rewarded by a raft of attractive tax and relocation benefits for their much-welcomed inward investment

Ireland's other big draw has long been identified as its labour pool of young, well-educated, English-speaking workers. At the end of 2001, the proportion of the population aged between 15 and 39 was higher at 39.1% than both the UK (34.5%) and the US (35.3%), according to Net Figures' database. The company suggests that this demographic divide is set to become even more pronounced. Between 2001 and 2005 the percentage of the Irish population in the 15 to 39 age band will drop by about 2.3% (to a predicted 38.2%), compared with a fall of 3.8% in the UK and 3.2% in the US.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.