With the numbers of people on the live register on the increase, Marie Madden talks to Tony Barrett, Regional Director of FÁS, about the sectors that are set to suffer most from the economic downturn and how to stay afloat in the current business climate

The latest figures from the Central Statistics Office (CSO) have shown that the rapid rise in unemployment figures is showing no signs of slowing down. Unemployment figures are now reaching heights not seen for ten years, with the number of people on the live register in Galway up almost 22 per cent on the same time last year.

While the construction industry is feeling the worst effects of this economic downturn, many businesses are currently in a very vulnerable position as multi-nationals continue to withdraw from Ireland.

Speaking to the Galway Independent Business Forum recently, Tony Barrett said he is beginning to see workers from all sectors emigrating to other EU states in order to find employment.

"We are now on the downturn of the wave and it is going to affect all aspects of the economy. One of the first indications of this that we would have seen is the drop in the number of companies sponsoring apprentices. This would have dropped by about four or five per cent back in 2006, that figure was up to ten per cent in 2007 and this year it is looking to be between 15 and 20 per cent. This is going to have serious knock-on implications for business.

"During the height of the wave, we would have been actively recruiting workers from other EU member states but now we are bringing companies from countries such as Holland, Poland, Estonia and the Czech Republic to Ireland to encourage their nationals to go back and work in countries where the economy is much more stable."

According to Barrett, many industries, including the traditional textile businesses, have been 'feeling the pinch' for a number of years but the buoyant Celtic Tiger boom masked this steady deterioration.

"Of course, some businesses are more at risk than others and some have been under pressure for a long time now. Traditional manufacturing industries such as textiles have been coming under extreme cost pressure, with many larger companies relocating to a more cost-effective climate. This has been going on for a number of years but due to the ongoing boom, it didn't look so bad. The prospering business climate masked the steady deterioration in other sectors."