Dáil Éireann Debate, Thursday - 10 October 2013
17. Deputy Billy Kelleher asked the Minister for Jobs, Enterprise and Innovation his views on whether the PRSI measures introduced as part of the 2011 jobs initiative have assisted in job creation; the impact he expects from the planned ending of these measures; and if he will make a statement on the matter. [42721/13]
View answerThe Government’s Jobs Initiative of May 2011 was aimed at restoring confidence in the economy, providing opportunities for re-skilling those who had lost their jobs, and assisting people in getting back to work.
Key measures in the Jobs Initiative included halving the rate of Employer’s PRSI on earnings up to €356 per week, a reduction in the lower rate of VAT on certain goods and services, targeted Capital spending on labour-intensive projects, and the introduction of the national Internship scheme, JobBridge.
The reduction in the Employer’s PRSI rate was introduced on a temporary basis, to the end of 2013. Any decisions concerning PRSI measures for 2014 will be a matter for the Minister for Finance in the context of next week’s Budget.
The Government’s primary strategy to support job creation since the Jobs Initiative has been the Action Plan for Jobs. The Action Plan has introduced a wide range of additional measures to support job creation in 2012 and 2013. For example, arising from a commitment in the 2013 Action Plan for Jobs, the Government launched JobsPlus last July. This is a new incentive that offers employers a grant of €7,500 for recruiting a jobseeker between 12 and 24 months unemployed, and €10,000 for recruiting a jobseeker over two years unemployed.
The latest CSO employment figures show that there were 33,800 more people in employment in Quarter 2 of this year than there were in the same period last year. Unemployment fell by 22,200 in the same period. We have now moved from a situation where the private sector was losing over 7,000 jobs per month before this Government came to office, to the present situation where it is creating close to 3,000 jobs per month.
The Government will continue to build on this progress through the Action Plan for Jobs in 2014, as we transform the economy from one based on unsustainable debt to one based on enterprise, innovation and exports.
