Dáil Éireann debate -
Wednesday, 13 Jun 2001

Vol. 538 No. 1

Written Answers. - Unemployment Levels.

Austin Deasy

Question:

96 Mr. Deasy asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason a considerable number of able-bodied people remain unemployed; and the steps being taken to improve their skills to meet workforce demands and reduce the current demand for foreign workers. [17251/01]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

Strong economic and employment growth has resulted in substantial decline in unemployment and particularly long-term unemployment. Based on the most recent Quarterly National Household Survey, for the first quarter 2001, the unemployment rate has fallen to 3.7%, down from 4.7% one year earlier.

There were 65,600 persons unemployed in the first quarter of 2001, an annual fall of nearly 16,000. Of that total, there are now just over 21,000 persons who are long-term unemployed based on the ILO measure. The fiscal and job-creation policies pursued by the Government in recent years have contributed to an overall reduction of 93,000 in the numbers unemployed since April 1997. Nevertheless there will always be an element of short-term unemployment in the economy. These persons represent a pool of unemployed who remain for short periods in unemployment pending their transition to a job.

For persons who are long-term unemployed, studies indicate that such persons face multiple barriers to taking up work for example a lack of education and skills, misuse of drugs, literacy problems or age barriers.

The Government has in place a range of measures aimed at tackling remaining levels of unemployment, including through raising skills. Under the Preventive Strategy where unem ployed persons are referred to FÁS, the supports provided to help them enhance their employability include education and training programme provision. There is available a large range and scale of active labour market programmes to assist in the re-integration of the long-term unemployed and other disadvantaged in their transition to work, covering education, training and work experience. In addition to substantial FÁS supports, with total expenditure of £650 million in 2001, other Departments also have significant measures in place, including the "Back to Work Allowance" scheme operated by the Department of Social, Community and Family Affairs and the vocational education and training opportunities scheme, VTOS, by the Department of Education.

The above represent some key elements of the overall employment and labour market strategic approach, as notified in the Employment Action Plan 2001 designed to match labour supply and demand. Nothwithstanding the considerable efforts and successes at integrating unemployed persons and other jobseekers into the open labour market, it is anticipated that some level of labour immigration will be required for the foreseeable future to meet the needs of the expanding economy.

Based on trends in recent years, around half of the numbers of migrant workers joining the Irish workforce have been returning Irish people. Under the Treaties of the European Union, nationals of other member states have the right to take-up employment in Ireland on an equal basis with Irish citizens. In addition, employers may apply for work permits in those cases where non-European Economic Area, EEA, nationals are required to fill employment vacancies in Ireland. Last year, in the context of a very tight labour market, a work visa authorisation scheme was introduced to facilitate the recruitment of suitably qualified people from non-European Economic Area countries for designated sectors of the labour market where shortages were particularly acute.

I am satisfied that we are fully exploiting the domestic sources of additional labour supply. The unemployed and disadvantaged groups, together with increased female participation, will continue to be targeted as significant sources of labour supply. This is being complemented with a balanced focus on migration in the event that local sources are insufficient to meet the demand for labour and skills in the economy.