Research into the comparison between net wages especially for lower paid jobs and the potential social welfare income of those likely to fill them has shown that such employment would not be financially attractive in some cases. Chapter 7 of "NESC: A Strategy for the Nineties" contains information on the poverty trap.
The family income supplement is a major Government initiative to make employment a more attractive option in such cases.
The partnerships established under the area-based response to long term unemployment have also identified the relationship between pay, social welfare payments and FÁS allowances an an obstacle to many long term unemployed persons taking up employment training or other manpower opportunities which would assist them return to the workforce. In this regard, the Taoiseach announced on 30 April last in Tallaght a number of special measures to be taken in the 12 pilot areas aimed at helping the long term unemployed in these areas get back to work. The measures, which will be operated through the partnerships in association with the appropriate Government Departments, focus on eliminating difficulties faced by people who are long term unemployed when the possibility of taking up either paid employment and/or training and development schemes present themselves. In particular, long term unemployed people, approved by the partnerships, taking up paid employment or becoming self-employed will retain their existing secondary social welfare benefits, for example, Christmas bonus, fuel and butter allowances and so on for a period of 12 months. In the case of those becoming self-employed, they will be paid an allowance for the 12 months equivalent to the Social Welfare payments to which they were entitled while on the live register.
In my area, assistance to the long term unemployed is provided by FÁS and CERT, with the major programme being the social employment scheme.