Although 259 new jobs were created in various companies, the closure of a number of businesses has led to an overll drop in jobs.
The biggest loss was the closure of Gal Ard Teo which resulted in 184 job losses.
New jobs were created in companies such as R.A.Pacáistí Teo, Éist & Cuidiú Teo, the Largo Foods group and Fáisc Miotail Teo on the Gaoth Dobhair Business Park, and in companies in the textile sector in Snáth Chill Chartha and Cuan Tamhnaigh Teo in south-west Donegal.
The report, which was published this morning, revealed that there were 1,876 full-time jobs in Udaras-supported companies in the Donegal Gaeltacht at the end of last year.
Other significant investments announced during the year included the decision by Largo Foods to invest €2.6m in its manufacturing facility on the Gaoth Dobhair Business Park and the decision by Randox Teo to acquire the building it leased from Údarás in An Clochán Liath at a cost of €1m.
The development of the Áislann on the Gaoth Dobhair Business Park also continued.
With an overall investment of €8m to date, the ground floor is now complete and currently houses a crèche and preschool, an arts exhibition centre and a county library.
The business incubation centre on the first floor has been completed and a marketing campaign will begin in early 2012 in an effort to attract up to 10 micro-businesses involved in the technology sector to the Áislann.
Works will continue to complete the remainder of the first and second floor development for the purposes of attracting new enterprises in the future. All of these investments signify a vote confidence in the Donegal Gaeltacht, its workforce and the community in general.
There were also 263 people employed on social employment schemes in the Donegal Gaeltacht at the end of the year.
The employment schemes are managed and administered by Údarás na Gaeltachta and funded through the Department of Social Protection.