Dáil Éireann debate -
Wednesday, 28 Jan 1998

Vol. 486 No. 1

Written Answers. - Labour Shortages.

Minister for Finance (Mr. McCreevy):

As the Deputy knows, the unemployment rate in Ireland has dropped dramatically in recent years, from 15½ per cent in 1993 to about 10 per cent today. The Government's policies are designed to ensure that we continue to make significant progress. The current level of about 10 per cent — while a substantial improvement — is still unacceptably high.

It is somewhat paradoxical that relatively high unemployment could co-exist with possible labour shortages at both the skilled and unskilled ends of the labour market. The challenge for policy is to ensure that the unemployed are encouraged to take up the increasing number of jobs becoming available as our economy continues to grow.

As regards the supply of skilled labour specifically, the Deputy will be aware that the Government approved major new investment in education and training in November last, totalling £250 million over three years. The investment is to provide for a substantial increase in the number of third level places to meet future skills needs in the computer software industry. It will also be used to meet skills requirements in the hotel and tourism sector and to create training places for teleservices in the post leaving certificate area.

With regard to the supply of unskilled labour, a number of initiatives are in place to assist particularly the long-term unemployed to return to work. The most important of these are the community employment and back to work allowance schemes. In addition, in the recent budget I introduced a further initiative of tax concessions focused specifically on the long-term unemployed. These concessions, which should have a significant effect, come into operation from April next.

I share the Deputy's concern and that of the Central Bank about the danger of serious labour shortages emerging. The measures I have outlined are designed to ensure that the labour market responds as fully as possible to the increased job opportunities now arising in the economy. The position will continue to be kept under review and any further action that is deemed necessary will be taken by the Government.