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Dáil Éireann Debate, Wednesday - 15 September 2021

Wednesday, 15 September 2021

Questions (184)

Bernard Durkan

Question:

184. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which particular efforts are being made to assist employers particularly hit by staff shortages in the wake of Covid-19; if specific measures are being taken to address this issue; and if he will make a statement on the matter. [44177/21]

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Written answers

The past year has been a difficult year for both employers and employees.  The Government is committed to creating the right environment for a jobs-led recovery and to getting people back to work. Our Economic Recovery Plan commits to ongoing support for businesses and people to provide certainty and confidence for employers to continue to operate and re-employ staff members, with enhanced support for the worst affected sectors, as well as signalling the gradual phasing out of the PUP.  The Plan also sets out medium term policies to underpin a sustainable and balanced recovery and a commitment to invest in infrastructure and reforms to enhance our capability and long-term capacity for growth. 

Although the numbers in receipt of the pandemic unemployment payment continues to reduce, there are still a significant amount of people who remain in receipt of this payment,with the highest numbers in the Accommodation and Food Service Activities (27,545), Wholesale and Retail Trade (22,434), Administrative and support service activities (16,504), and construction (11,725) sectors. 

Extension of the Employee Wage Subsidy Scheme, which subsidises a portion of labour costs, until 31 December 2021 gives businesses the opportunity to trade profitably even when operating under ongoing constraints. Extension of the Covid Restriction Support Scheme to the end of the year, the Business Resumption Scheme, broadening of the Small Business Assistance Scheme for COVID grant and continued deferral of tax liabilities further demonstrate the Government’s efforts to help businesses to continue trading and restore employment.

Our Economic Recovery Plan set an ambitious target to exceed pre-crisis employment levels by having 2.5 million people in work by 2024 and in more productive and resilient jobs. The Plan commits to further strengthen Ireland’s Skills Framework to ensure people are supported to secure and remain in sustainable and quality employment and ensure employers can access the skills they need. As the PUP is phased out, helping people back to work and reducing the risk of labour market scarring and entrenched long-term unemployment is a priority for Government. This will be achieved through a combination of upskilling and reskilling with substantially accelerated training and skills opportunities and increased activation capacity through Pathways to Work 2021-2025.

The Action Plan for Apprenticeship 2021-2025, which targets 10,000 apprenticeship registrations per annum by 2025, is an important mechanism to address skills shortages in particular sectors. Retail Ireland’s Skillnet Apprenticeship in Retail Supervision and the National Hairdressing Apprenticeship are good examples of programmes providing job-ready qualified professionals in those sectors. My colleagues, Simon Harris, TD, Minister for Further and Higher Education, Research, Innovation and Science, and Niall Collins, TD, Minister of State for Skills and Further Education, recently announced a further extension of the Apprenticeship Incentivisation Scheme until the end of December 2021 which provides financial support for employers who register apprentices to a national apprenticeship.

The pandemic has accelerated previously existing trends and shifts which have potential to significantly reshape business models and sectors.  Many of these changes are likely to be permanent with potential to fundamentally alter Ireland’s economic outlook. Not all previous jobs will return, while capacity constraints may emerge very quickly in certain areas. The twin decarbonisation and digitalisation transition and associated behavioural changes will profoundly alter the economy.

Embracing these transitions will also open up substantial new opportunities for businesses and support significant job creation. Identifying and developing the skills required in growing sectors of the economy is critical to Ireland’s competitiveness.  The Expert Group on Future Skills Needs (EGFSN) advises the Government on projected skills requirements across the Irish economy and makes recommendations on how existing education and training systems and delivery mechanisms, as well as other sources of skills supply, can be improved. The education, training and research sectors will be supported to respond to the challenge. 

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