Dáil Éireann debate -
Thursday, 8 May 2003

Vol. 566 No. 2

Written Answers. - Unemployment Levels.

Paul Kehoe

Question:

56 Mr. Kehoe asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the recent quarterly economic commentary from the Economic and Social Research Institute which forecasts that labour market conditions are expected to deteriorate considerably in 2003, running from 4.4% in 2002, to 5.3% in 2003 and to 5.5% in 2004; and if she will make a statement on the matter. [12241/03]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Fahey):

The ESRI's quarterly commentary must be seen in a broader global context. As a small, open economy, Ireland is very much influenced by developments internationally. The short-term forecast of upward pressure on the unemployment rate reflects the current slowdown in the general economic climate that has been characterised by uncertainty in terms of the world economy and a slowdown in the hi-tech, telecommunications and financial sectors. However, most if not all commentators – ESRI, Central Bank, the Department of Finance – agree that in the medium and longer term the forecast is for more sustainable growth and job creation. It is important, therefore, that we continue to focus on the issues that will maintain Ireland as a competitive and dynamic economy. Indeed, the ESRI commentary points out that the current social partnership agreement, Sustaining Progress, should help to reinforce dis-inflationary trends in the economy.

The current unemployment rate at 4.5% is still among the lowest in the EU. The average EU unemployment rate currently stands at 8%. Employment policy will continue to focus on the following priorities: the promotion of employment growth; increasing the supply of labour, including female participation and equal opportunities; improving the quality of labour through education, training and lifelong learning; the promotion of economic and social inclusion; and the elimination of long-term unemployment.

The role of FÁS in systematically engaging with the unemployed as they reach a six-month threshold will be pivotal in helping to prevent the drift into long-term unemployment. FÁS has a range of training and other schemes to help unemployed persons gain the skills needed to see them best placed to benefit from future job opportunities.