The United States of America is an accurate barometer for the rest of the worlds economies, and especially Ireland where out economy depends greatly on large multinational US companies in Ireland (DELL, Pfizer, Intel, etc). Last months US unemployment figures have broken another psychological barrier, they have broken through the 8% rate, and now stands at 8.1%. The current slow down in the US economy meant that in February alone, over 651,000 jobs were lost. And now the US has the worst unemployment rate since 1983.
So what is in store for Ireland ? Will we reach record levels again ? Some analysts say that we will reach double figures and we could go as far as 15% in 2010 ! A recent report from the CSO show that the live register numbers are up right across the board. The live register is not the number of unemployed, it includes people who work up to 3 days a week (part-time), seasonal and casual workers who are entitled to Job Seekers Benefit or Allowance. Dublin had the overall highest number increase (over 7,000), while Carlow had the highest percentage increase (10.7%). The number currently on the live register is over 350,000 , with 280,000 being Irish nationals, 15,000 from the UK. Of the 350,000 job seekers, 68% are males with 239,000 and just under 50,000 (20%) of these are under the age of 25, while females make up 32%, with 115,000 and 26,000 (22%) under the age of 25.
Late last night it was announced that up to 13,000 Irish civil servants will be going on strike next week. They are doing so because of the Government’s newly enforced pension levy. So it’s planned that next Thursday (Thursday 26th Feb 2009) that the public sector administrative and clerical workers will go on strike. Most government departments will be effected, including the extremely overworked social welfare offices, tax and passport offices.
The general consensus with the public servants is that this is totally unacceptable. From the 13, 000 workers, over 11,000 returned ballots (almost 85%) and 83% of these (about 9,000) vote in favour of strike action. The Department of Finance already stated on Monday that they will not be in a position to pay workers for this striking day.
The levy increase was set to increase from 3% to 9.6% in an effort to save some of the exchequer losses in the region of €2 billion. There is also the deferral of the national wages increase, which is the equivalent to a 12% wages cut.
So does striking make things better ? Is the Irish economy already under fire enough, without more problems ? The average wages of a clerical officer grade is €30,000 , which is higher than then national average wage, and there is research stating that our civil servants wages are some of the top in the world.
A news bulletin today mentions that there are 50 new jobs being created by the online business directoryWhatsWhat (www.whatswhat.ie). WhatsWhat are similar to the goldenpages (even looks a little like it), in that they list companies contact details, phone/address etc. They are unique in the fact that they offer website design and SEO consultancy to these business listings. Currently they have over 60,000 companies listed, and claim to have 4,000 visitors per day. WhatsWhat was founded in 2002 by Barbara Gordon, a Wicklow based business woman, who wanted to get Irish companies online. Their directory offers 3 levels of listing, from €200 /year- €100 /year to free listings.
More via the Irish Times
Update 15/02/2009 : Via Damien apparently these jobs are more commission based jobs, as apposed to full time positions.
10 February 2009 | glanbia | Comments Off on Glanbia reduce workforce further
Another week, and another round of layoffs from Glanbia (www.glanbia.ie). Last week they announced 50 jobs were to go at their City West facility, and now today they announce a further 210 job cuts. The company who had €2.2 billion worth of revenue in 2007 now say they need to introduce this cost savings plan. The job losses are part of Glanbia’s €16 million restructuring plan for 2009. The company has said that they hope the 210 jobs will come voluntary from their staff of just inder 5,000.
Glanbia owns such brands as Avemmore, Yoplait, Kilmeaden, Premier Milk and CMP Dairies.
Glanbia have failed in one of the most important rules in laying off workforce, namely, “cut once, cut deep”. The probelm with continiously making more and more of your workforce redundant is that it demotivates staff more, than if one single cut was announced.
Their share price dropped to €2.61 today after this news.
10 February 2009 | esb | Comments Off on Companies saving in the Recession
News came today that ESB (www.esb.ie) want to introduce a 2 year pay freeze for it’s 8,000 staff members. They have approached the trade unions, and leading by example with management wage cuts. CEO Padraig McManus is taking a 10% cut while other senior mangers are taking a 5% pay cut, and this is also along with having the 2 year pay freeze.
It’s good to see that the managers are leading the way and giving the staff a good example. Granted these guys probably get paid significantly more than the average ESB worker. But to the workers it shows that they are at least making some effort.
For the average ESB worker things start to get a little more as they have just recieved a 3.5% wage increase as part of the national wages deal. And the further 2.5% is due in June. But if the pay freeze comes into effect then this might come into question. The ESB union released a statement saying that they still expect the National Wags Agreements to be honoured and keeping the ESB inline with what the Social Partnership agreed on last year.
One thing to remember is that because of the recession, many companies might start to introduce some cost saving measures, under the guise of the down turn in the economic situation. And of course people are now starting to realise how lucky they are to have jobs, compare with those guys at DELL, Kostal and other companies around the country. Having a job that pays less over 2 years is better than having no job at all. Right now the employment market upperhand lies with the employers, and I’m sure that they will use it to their full advantage while it lasts.
9 February 2009 | Ireland | Comments Off on Big spending recruitment agencies
Last Sunday the 43rd Superbowl took place between the Pittsburgh Steelers and the Arizona Cardinals. It is one of the most watched TV programs in the world (after the Olympics), with an estimated 1/3 of all Americans tuning in to see the big game. So with 98 million US adults watching, it’s a great way to target some advertising at them. In fact the US Superbowl is well known for it’s ads, some organisations create specially theme ads for the event. And these advertising spots down come cheap. For a 30 second spot you will need to pay USD$3M , which is up 10% from last year’s rate. So running at $100,000 per second, it is the most expensive TV ads out there.
For your money you do get to show off your product to a significant portion of the US adult population. Monster and Careerbuilder both bough spots. In fact Careerbuilder opted for a double spot, a 1 minute advert costing over $5M ! Recruitment agencies are seeing the recession as an oppertunity to get even more people’s CVs in their system.
8 January 2009 | Ireland | Comments Off on The future of DELL in Ireland
In just under 30 minutes there will be meetings held at the DELL offices in Raheen, Limerick. Meetings are scheduled for 9am and 10am to announced the fate of the company in Limerick. DELL , in their latest restructoring plans, want to reduce costs by up to $3 billion. The rumours around Limerick say that DELL are could axe up to 2,000 Irish jobs due to a proposed plan to move manufacturing away from Irealand and towards Poland and Asia. Currently there are around 3,000 employees at the Raheen location.
24 December 2008 | Ireland | Comments Off on Irish Redundancies Q4 2008
Today there has been a report from KBC Bank (www.kbc.ie) stating that over half of all Irish companies have left some staff go since October 2008. In the survey they also found out that 10% of firms are still hiring, and two thirds are actively seeking to trade down. These figures while are surpising, do not come as a shock (to us anyway). THe survey continues to say that 30% of the firms polled expect their operating costs to decline in 2009. Typically Janurary is a strong month for new jobs, across Ireland, but we expect that things will be significantly slower.
Businesses are either actively trying to reduce their staffing overheads due to reduced orders, or they hav hiring on hold. For the past 6 years the unemployment rate has been consistantly under 5% but this year it will be closer to 6% and the current rate is hovering around 8%. In November 2008 it was 7.8% (seasonally adjusted).
With this sad and slighlty depressing news we would like to wish you a happy and properous new year. Thanks for yet another year of reading our Irish Jobs News.
Good news today for people in the Mid-West with three companies announcing new jobs in this area. ON Semiconductors (www.onsemi.com) Mentor Graphics Ireland (www.mentor.com) and PAFS Ireland all announced plans to add extra positions in the companies yesterday.
On Semiconductors, formally a part of Motorola, is a semiconductor company specialising in energy efficient silicon. They will be establishing a new research and development centre in Raheen Business Park, Limerick. It is expected that they will have up to 49 new employees there.
Mentor Graphics Ireland, who provide software tools as well as consulting for electronic design, will be expanding their operations at the Shannon Free Zone. They will add another 35 employees to their existing operation where they currently employ 80 workers. Mentor Graphics in Shannon mainly provide logistic and distribution services from Shannon.
PAFS Ireland, will create 15 new jobs in the business service industry for aircraft leasing.
Well we are back blogging again, after a bit of a break. Here is an interesting experiment, where some lads in Dublin all get jobs, and see how long they can string the employers along, before they are fired. They give vary types of excuses, for the believable to the unbelievable. This was done by DogMedia Productions for the Darklight festival in 2007.
19 May 2008 | Ireland | Comments Off on 47 Engineering Jobs lost at Freescale in Cork
News has come today that the 47 employees at the design and innovation centre at Freescale (formally part of Motorola) are to loose their jobs. Freescale, who designs products for the mobile phone market,have offices located in the Cork Airport Business Park. The employees of Freescale were highly skilled, with over half of them having Master Degrees and 1/10th of them with PhD. So far no reason for the sites closing has been disclosed, but it is expected that the increased cost of operating in Ireland is one of the factors.
Today the 47 staff were informed by the management that they will be looking to close the plant by September this year, after a consulting period. This comes just over 14 months after Motorola decided to pull out of Cork. So after last week’s bad news about Hormann Electronics, electronic jobs in Cork just look like they are harder and harder to find. Freescale opened in Cork in 1998 with just 2 employees, and reached 40 employees in 2001 [source].
138 jobs are to be lost at the Cork Electronics company, Hörmann electronics. The company has gone into receivership just one week after the receivers David Gilbert from BDO Stoy Hayward in London and Liam Dowdall from BDO Simpson Xavier in Dublin were appointed. 117 staff have been been left go on Friday morning while the rest will remain until the end of the month.
The receivers said that there will be a redundancy package, but the details were not available at the time to be disclosed.
7 May 2008 | Ireland | Comments Off on Origina add 60 new jobs in Dublin
Origina, an IT services and and consulting firm have plans to add up to 60 new jobs in the next two years. This will bring the numbers who work for Origina to 120. The €3million investment is to help to bring the company to be a competitor to the traditional consulting firms. Origina, formally known as Unitech, will use €100,000 of the investment to rebrand the company and align the brand across Europe. Created in 1998 to meet the need of data storage management, Origina now offers project management, infrastructure and IT consolidation services. In the past they have also partnered with some of the bigger global brands like IBM , VMware, Orcale and Red Hat. The majority of these new jobs will be tech related positions and will at the headquarters in Dublin.
Medtronic (www.medtronic.com) have annoucned plans for wordwide cuts in their staffing. Up to 1,100 jobs worldwide are expected to go, which is almost 3% of it’s workforce. Thankfully this comes with a good note for Jobs in Galway , as Medtronic are moving their endovascular manufacturing operation from Santa Rosa, California, USA to Galway . The endovascular division makes stent grafts to treat aortic abdominal aneurysms. It is also moving some of it’s operations (diagnostic and cardiac rhythm disease management) to Holland.
Medtronic specialises in medial technology for chronic diseases. They manufacture products and therapies and services to alleviate pain and enhance peoples lives. Each year over 6 million people world wide use Medtronics services in the treatment of heart disease, diabetes and vascular illnesses.
The DETE (Department of Enterprise Trade and Employment , www.entemp.ie) has published some frightening figures on Irish redundancy rates. Year on year the number of reported redundancies in April rose by 47% between 2007 and 2008. The majority of these job losses were in the construction and manufacturing sectors, making up almost half of the reported redundancies. Up to April this year, there was more than 11,000 redundancies reported to the DETE. This figure is 27% larger than the same 4 months (January to April) in 2007. Standardised unemployment rate remains unchanged at 5.5% in April, according to the CSO (Central Statistics Office) and there is now 158,600 people on the live register (seasonally adjusted) , of these 58% were male. These news statistics come also with bad news from the Exchequer . As of the end of April, the tax take figures are around €736 million off their targets. Areas that had lower than expected revenues include the Capital Gains Tax and stamp duty receipts. These make up about €400 million of the loss. Micheál Martin, the minister for Enterprise Trade and Employment was quoted as saying that there currently is a “rebalancing” taking place in the economy.
So with all the doom and gloom in Ireland, and the apparent stagnant housing market in Ireland, it seems like the economy is starting to slow down. Now that unemployment is up, more redundancies are happening than previously and less people are selling their houses, the Celtic tiger is truly asleep.