Dáil Éireann Debate, Tuesday - 5 November 2013
391. Deputy Lucinda Creighton asked the Minister for Jobs, Enterprise and Innovation the total number of full time and part-time jobs which were created directly as a result of the reduction in employers PRSI for lower paid workers from 8.5% to 4.25% since it came into effect and up until to date in 2013; and if he will make a statement on the matter. [45947/13]
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 a reduction in the lower rate of VAT on certain goods and services from 13.5% to 9%, targeted Capital spending on labour-intensive projects, the introduction of the national Internship scheme, JobBridge, and the halving of the rate of Employer’s PRSI on earnings up to €356 per week.
The fiscal reductions in the Jobs Initiative were introduced on a temporary basis, to the end of 2013, although the Government did retain the VAT reduction on certain labour intensive goods and services in last month’s Budget.
While it is not possible to indicate the exact number of positions which have been filled as a result of the combined effects of the measures introduced under the Jobs Initiative, there is no doubt that they are contributing to both maintaining existing jobs and creating new ones.
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.
There is further evidence of the success of the Government’s policies as the latest CSO figures last week showed that there are now 396,512 people on the Live Register, 23,000 fewer than this time last year and almost 34,000 fewer than in October 2011. This is a very welcome turnaround considering that the Register was firmly on an upward trajectory towards 500,000 when this Government took office, and it is the first time since May 2009 that the Live Register has been below 400,000.
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.
