The pace of job creation in the multinational sector cooled in the first half of the year as the number of investment contracts into Ireland also fell, figures show.
In its half year results, the IDA secured 131 foreign direct investment contracts which have an associated employment potential of 8,900.
In the same period last year, the State-body won 139 contracts with the potential to create 12,000 jobs.
“I think we’ve come through a period where we’ve been very used to investment equals jobs growth year-on-year,” said IDA chief executive Michael Lohan.
Mr Lohan said jobs growth is “more modest than it was in the past” due to the changing nature of investments by large firms.
Mr Lohan suggested companies remain cautious amid lingering economic volatility including high interest rates and therefore are prioritising efficiency and competitiveness when making investment decisions.
However, Mr Lohan said the IDA is “seeing tech comeback”, in terms of jobs in Ireland, following a slowdown that resulted in mass layoffs across the globe.
The IDA indicated a key priority for the rest of the year will be the attraction of green foreign direct investment, particularly offshore wind, to drive down energy costs and partly boost the growth of the tech sector which has come under pressure to use more renewable energy sources in its operations.
“Continued high energy costs in Ireland relative to other locations within and outside the EU risk severely impacting FDI growth prospects,” the IDA said in its annual results which it released the same day as its half year results for 2024.
Meanwhile, as a US election looms closer, the IDA has increased investment activity coming from Europe especially as the Inflation Reduction Act (IRA) lures contracts back to the US.
Other more domestic risks threaten Ireland’s attractiveness for foreign direct investment including lack of national infrastructure capacity, primarily housing, as well as political stability said IDA chairperson Feargal O’Rourke.
“The biggest risk we face is execution,” he said in regard to meeting targets including housing.
The IDA won a total 248 investments last year, with an associated gross job creation potential of almost 19,000. The number of projects secured was up slightly on the previous year.
Direct employment in IDA client companies stood at 300,583 people nationally and exports by clients in the portfolio grew to €383bn, approximately 70% of total national exports.